Moncton Property Sales Rose Nearly 30 Per Cent in February
MONCTON – New Brunswick saw a three per cent increase in year-over-year real estate sales in February, according to a report released last week by the Canadian Real Estate Association. A nearly 30 per cent increase in Moncton balanced out declines in Fredericton, Saint John and Northern New Brunswick.
Shaun Cathcart, a senior economist at the Canadian Real Estate Association, said the province’s real estate market continues to firm up. Year-to-date, the province saw an 8.6 per cent increase in the dollar volume of sales compared to the previous year.
“Over the first two months of 2018, some 858 homes have traded hands in the province. The only year to ever have a better start than that was 2007,” he said.
National sales plunged in January and February following a record-breaking December. Cathcart said it’s widely thought that many sales were “pulled forward” into late 2017 ahead of federal changes implemented in the new year that made it harder to obtain mortgages. But New Brunswick seemed to have been far less impacted by this, likely because homes in the province are much cheaper than in Toronto or Vancouver.
“So qualifying for a mortgage at 2 per cent above the rate you’re actually getting is likely less of an issue in New Brunswick. Overall the year-to-date sales in New Brunswick are at the second highest level ever after 2007,” he said.
Moncton is doing especially well at the moment, Cathcart said.
“February 2018 was the best February for home sales in a decade [for Moncton],” he said in an e-mail to Huddle. “Moncton is currently experiencing above-average demand, whereas last year at this time demand was on par with both the five and 10-year averages for February sales.”
“In the case of Fredericton, sales have slowed a bit to start the year, but it could be argued that the year-over-year decline was as much to do with an aberrantly strong February in 2017. In Saint John, sales are still running above average, just not quite as strong as last February.”
Sales of both residential and non-residential properties in Moncton increased 29.5 per cent to $35.4 million compared to February of last year. In the Fredericton area, total sales fell 18.8 per cent to $25.8 million. Saint John and Northern New Brunswick saw a 2.5 per cent and 1.7 per cent decrease each.
Year-to-date, the average home price in New Brunswick rose 4.5 per cent, Moncton 5.3 per cent, Fredericton 7.1 per cent, Saint John 3 per cent and Northern New Brunswick 6.4 per cent.
“Prices have been relatively stable across the province over the past decade. As the market has firmed over the past two years, prices are likely to move up slowly since demand has strengthened overall when compared with supply.”
Overall, Cathcart said the housing market in New Brunswick is doing “very well at the moment,” a trend that has been in the making for years.
“Things should remain solid going forward. Although, any further forward momentum will likely be running up against interest rate increases, which could hold sales back from where they otherwise might be, and could also limit upward price movements,” he said.
“If interest rates rise over the next couple of years as many expect, this will act as a headwind against those positive demand/supply trends. That said, even if sales were to remain flat where they are right now, that would still be very strong.”