Cautious Optimism In New Brunswick’s Real Estate Market
FREDERICTON – Growth should be slow and steady in province’s real estate market this year according to the New Brunswick Real Estate Association (NBREA).
Last year saw an improvement in the market, with about 6,309 homes sold across the province over the first 11 months of the year. That’s a 6.2 per cent increase from the same period in 2014, and was the best performance in the last five years.
NBREA president Kari McBride said we’re looking at similar growth in 2016.
“According to the Canadian Real Estate Association, economic prospects are strengthening, which should translate into a slow and steady improvement in sales,” McBride said.
“Prices continue to be affordable due to an elevated supply of listings, and the New Brunswick average sale price is forecasted to see a slight increase. I see 2016 being much like 2015, with a bit more optimism. “
This sentiment can be seen in the Moncton market, said Moncton Real Estate Board executive officer Kerry Rakuson.
“We’re sort of this slow, steady, win-the-race type of market where we continually see small growth and never really see any big peaks and valleys. So I suspect 2016 will see much of the same,” Rakuson said.
Though the feeling is generally the same across New Brunswick, each city is unique. For instance, Moncton has experienced more semi-detatched builds than Saint John and Fredericton. Rakuson said this is likely because Moncton has a younger population.
“Those would be the first-time home buyer-type properties. Because we have a younger population who isn’t as equipped to go into larger single-family home,” she said. “That semi-market drives us a little more than what we see in Fredericton and Saint John.”
That being said, Moncton’s biggest challenge is the same as pretty much everywhere else in the province: Too much inventory and low population.
According to the NBREA, the overall supply of homes for sale on the market is running at historically high levels. There were 6,597 active residential listings on the MLS systems of real estate boards in New Brunswick at the end of November 2015. This was up 0.9 per cent from levels at the end of November 2014.
McBride said lots of listing is wonderful news for buyers, but sellers might need to make some tough decisions.
“With many houses on the market to choose from, buyers will still benefit from the ample choices, while sellers will need to decide if they can adjust their price to facilitate a quick sale, or hold out and endure a long listing period.”
There’s no denying that there’s been pessimism about the province’s real estate market in recent years, but McBride said New Brunswick remains the least expensive province in the country to buy a home. The average cost of a home is $155,127, as opposed to costing about $385,430 in Alberta or $209,496 in Nova Scotia.
She said this is very attractive to investors and buyers alike.
“We have been going through an adjustment over the past 4 years – this type of change in our economic and real estate sector takes time to digest and come up with action plans to overcome the prevailing adversity. With time comes acceptance, and I think that is where we are right now,” she said.
“Combining this with the cautious optimism of New Brunswick’s economic outlook for 2016, there is definitely much to look forward to.