Is Moncton, New Brunswick, the best place to buy a home in today’s Canadian real estate market?
Money Sense, a Canadian publication, named the Greater Moncton Area the best location for prospective homeowners in the country.
The authors assessed the benchmark price for detached homes, attached residential properties, townhouses and apartments. Last year, the typical price of a home was a little more than $300,000, which was approximately $425,000 below the national average.
The magazine noted that the Atlantic Canada province is attracting people from other provinces and around the world. They are driven by the space, nature and affordability components. With its improving economy and diverse economic landscape, Moncton is a prime city, Money Sense noted.
“Newcomers are drawn by the abundant space, accessible nature and greater affordability, as well as New Brunswick’s reputation for friendly communities and its opportunities to buy larger properties with oceanfront views. Then there’s the fact that working from home has made commuting obsolete for some workers. All of this has helped increase the value of Greater Moncton’s residential benchmark price by over 98 per cent in the past five years,” the website stated.
“Moncton’s affordability will continue to make it an attractive destination for local and out-of-province buyers seeking the comforts of home—especially with prices at historical highs in areas like Toronto and Vancouver.”
Two other New Brunswick municipalities cracked the top 10 list: Saint John ($252,500) and Fredericton ($252,200). Neighboring Halifax and St. John’s made the top 45 list, too. Four Ontario towns rounded out the top five: North Bay, Quinte West and Hastings County, Tillsonburg, and London and St. Thomas.
So, how has the Moncton real estate market performed as of late? Let’s take a look at the recent data.
Moncton a Top Spot to Buy Canadian Real Estate
According to the Greater Moncton REALTORS® du Grand Moncton, residential property sales tumbled 3.1 per cent year-over-year in June, totaling 432 units. Year-to-date, home sales have declined at an annualized pace of 15 per cent, with a little more than 2,000 units changing hands.
On a historical basis, home sales were still 10.4 per cent above the five-year average and nearly 30 per cent above the 10-year average for this time of the year.
Like other Canadian real estate markets, Moncton home prices maintained their upward trajectory, despite slowing demand.
Association data show that the MLS® Home Price Index (HPI) advanced 31.9 per cent year-over-year in June to $336,100. Moreover, here is a breakdown of the benchmark price for multiple housing categories:
- Single-Family Homes: +31.9 per cent to $338,600
- Townhomes: +37.1 per cent to $262,300
- Apartments: +23 percent to $298,800
Supply has improved notably in the Moncton housing market, the association says.
The number of new listings climbed by 25.5 per cent, with 739 new units in June. This represented the largest number of new listings added in the month of June on record.
Active residential listings rose just shy of eight per cent to 1,021 units.
New listings were 26 per cent above the five-year average, while active listings were 29.3 per cent below the five-year average.
The number of months of inventory, which examines the number of months it would take to exhaust current supplies at the present level of sales activity, clocked in at 2.4 at the end of June. This is up slightly from 2.1 months at the same time a year ago.
“New listings continued to return to the market, helping overall inventory rise to the highest level since September 2020,” said Mike Power, President of the Greater Moncton REALTORS® du Grand Moncton, in a statement. “Buyers that may have been putting off purchasing a home seem to have returned to the market now that there is a larger selection of homes available. Moving forward, it is reasonable to expect sales to cool as interest rates rise and buyers wait to see the impact of rising mortgage rates and declining prices on the market in general.”
And this could be the near-term trend, too. According to Canada Mortgage and Housing Corporation (CMHC), housing starts surged 48.3 per cent to 267 units in June, up from 180 a year ago. Year-to-date, housing starts have also risen at a modest pace of 9.51 per cent to 794 units, up from 725 in the first six months of 2021.
What About the New Brunswick Real Estate Market?
Overall, the Atlantic Canada housing market is witnessing trends similar to the rest of the country: sliding demand, strengthening prices, and increasing inventory levels. The New Brunswick real estate market has been no different.
According to the New Brunswick Real Estate Association (NBREA), home sales dipped 3.7 per cent year-over-year in June, while the composite benchmark price climbed nearly 30 per cent to $299,000.
Ultimately, as the broader Canadian real estate market begins to cool, New Brunswick and the rest of the eastern region are holding steady amid higher interest rates and global uncertainty.