Moncton housing market prefers sellers in 2021, prices expected to rise 15%
The housing market in Moncton is expected to be in the sellers’ market area in 2021, which is characterized by low housing supply and rising prices. Low inventory is a common trend in many Canadian real estate markets, which is putting pressure on prices. Indeed, the Moncton real estate market saw prices grow to $ 214,736 in 2020 (January 1 to October 31) compared to $ 192,889 in 2019 (January 1 to December 31). The RE / MAX outlook for Moncton real estate in 2021 is a 15% increase in average price to $ 246,946 across all property types.
Who is driving the housing market in Moncton?
The Moncton’s seller’s 2020 market conditions were largely driven by non-provincial buyers who either have an accelerated retirement or work from home rather than needing to live near an office.
In the wake of COVID-19, more space has become a prominent buyer demand, with single-family homes being the most popular home type in the Moncton market. This is a common trend in many Canadian housing markets, as well as in regions abroad, as home buyers seek more space and less density outside of the big cities. Factors influencing this broader trend include the increase in teleworking, the desire for more space, and lower property prices outside of urban areas.
First-time home buyers in Moncton, most commonly families buying single family homes in the $ 150,000 to $ 200,000 price range. Their main concern is rising prices. Similarly, newcomers are concerned about rising prices and experience multiple supply scenarios for many homes.
In the luxury market, units have moved faster than before the pandemic, typically being bought up by newcomers and out-of-town buyers in the $ 550,000 price range. The rising demand for luxury real estate is expected to continue through 2021 and beyond as a long-term shift in the market.
Canadian housing market in 2021
Canadians are on the move. RE / MAX does not refer to this as an “exodus”, but the moving trend in the Canadian housing market is real and only one focus of the RE / MAX Housing Market Outlook 2021. RE / MAX Canada expects healthy home price growth at the national level, with both up and down trends Buyers will continue to drive activity in many regions of the Canadian housing market. A persistent and widespread housing shortage is likely to persist, creating challenges for home buyers and pushing prices up.
Based on these factors, the RE / MAX 2021 outlook for average home prices across the country is estimated at + 4% to + 6%. Here is the regional breakdown:
Other report results include:
- 35% of RE / MAX brokers state that “overdrawn” buyers from other cities and provinces will continue to stimulate market activity in 2021
- 45% of RE / MAX brokers say emerging buyers are likely to be the main driver of demand in the housing market in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain stable in 2021
- 52% of Canadians believe real estate will remain one of the best investment opportunities in 2021
“Since the summer, we’ve seen plenty of anecdotal evidence that households are considering significant lifestyle changes by moving to less dense cities and neighborhoods,” said Christopher Alexander, executive vice president and regional director, RE / MAX of Ontario-Atlantic Canada . “This has resulted in unprecedented sales in suburban and rural parts of Canada this year and we expect this trend to continue in 2021.”