Driven by strong demand and limited supply, Greater Moncton home sales in the first quarter area eclipsed last year’s levels, rising seven per cent year-over-year.
Overall, Atlantic Canada is poised for strong housing market performance in 2019 as economic performance ramps up, unemployment rates decline, and first-time buyer incentives at both provincial and federal government levels take hold, according to the RE/MAX 2019 Atlantic Canada Housing Market Report. The report found strong momentum in the larger urban centres, as well as spillover into several smaller markets. Home sales are on par or up in just under half the markets surveyed (7/15), likely due to the current shortage of inventory, while housing values have climbed in almost three-quarters (11/15) of the Atlantic Canadian markets surveyed.
Housing Activity in Greater Moncton
Six hundred and thirteen homes were sold in Q1 2019, shattering all existing Q1 records and breaking through the 600-unit benchmark for the first time. Year-to-date average price is up 2.3 per cent in the first quarter of the year, but values are expected to climb given supply issues. Active listings were down by more than 20 per cent in March, with just under 1,500 homes listed for sale. Months of inventory dropped to 6.3, the lowest level in more than a decade. Home-buying activity is expected to continue unabated in Greater Moncton, with shortages reported in all neighbourhoods and price ranges. Multiple offers are now commonplace, with many homes selling for list price and more. All segments are working in tandem, from first-time buyers to more experienced purchasers at the top end of the market. Out-of-province buyers–with no roots in Moncton or New Brunswick – are also contributing to the uptick in activity. Strong economic fundamentals are behind the renewed push for housing in Greater Moncton this year. More than 1,000 jobs have been created by the TD Bank’s $50 million new corporate office in Dieppe, including 440 high-skilled jobs. The corporate office also houses a full-time call centre. West Jet recently opened a call centre in Moncton employing 400 people. With consumer confidence climbing, and economic stars perfectly aligned, the stage is set for a solid year of home-buying activity in Greater Moncton, with both unit sales and average price forecast to exceed 2018 levels.
Atlantic Canada Housing Market Highlights
- First-time buyers were a driving force in almost 70 per cent of markets surveyed. (10/15)
- Low inventory levels were reported in 80 per cent of markets. (12/15)
- Home sales were strongest at starter price points ranging from $100,000 to $300,000.
- Buyers from other parts of the country were active in 60 per cent of Atlantic Canada housing markets. (9/15)
- Newfoundland and Labrador and New Brunswick are seeing an influx of people returning home after working in Alberta’s oil sector.
- Luxury sales were up in Halifax-Dartmouth, Saint John and Kings County.