Moncton housing market to favor sellers in 2021, prices expected to rise 15%
The Moncton housing market is expected to sit in seller’s market territory in 2021, characterized by low housing supply and rising prices. Low inventory has been a common trend across many Canadian housing markets, putting upward pressure on prices. Indeed, the Moncton housing market saw prices rise to $214,736 in 2020 (Jan 1-Oct 31) compared to $192,889 in 2019 (Jan 1-Dec 31). The RE/MAX outlook for Moncton real estate in 2021 is on increase of 15% in average price to $246,946 across all property types.
Who’s driving the Moncton housing market?
Moncton’s seller’s market conditions in 2020 were driven strongly by out-of-province buyers who have either expedited retirement plans, or are working from home and no longer need to reside close to an office.
Increased space has become a prominent buyer demand in the wake of COVID-19, with detached homes serving as the most popular home type in the Moncton market. This has been a common trend across many Canadian housing markets as well as regions abroad, as homebuyers seek more space and less density outside of big cities. Factors impacting this broader trend include the rise in remote work, the desire for more space, as well as lower housing prices outside of urban areas.
First-time homebuyers in Moncton who are most commonly families purchasing single-detached homes in the $150,000 – $200,000 price range. Their main concern is rising prices. Similarly, move-up buyers are also concerned with rising prices and are experiencing multiple offer scenarios on many homes.
The luxury market has seen units moving quicker than before the pandemic, typically scooped up by move-up and out-of-town buyers in the $550,000 price range. The increase in demand in luxury properties 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 isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nationwide. Here’s the regional break down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighborhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada . “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”