In the Moncton single-family home market, sellers still have the edge. Realtors speaking to the Business Journal said the market is showing signs of compensation, but demand for homes continues to outpace supply.
While a balanced real estate market that gives buyers more room to negotiate will last at least six months, according to Phil Jones, president, inventory is around 2.8 months according to the latest data for single-family homes in Moncton and CEO of Coldwell Banker Coastal Alliance. In April 2018, the inventory was at 2.1 months.
Compared to the beginning of 2018, the increase in supply is even more significant; According to Beatrix Whipple, CEO of Moncton real estate agency The Whipple Group, the inventory of Moncton homes for sale was just 1.7 months at the time. During that time, sellers could list their homes at “cheaper” prices and likely find a buyer, she added.
Beatrix Whipple, realtor and CEO of the Whipple Group, said Moncton is still a sellers’ market for owners who list their homes appropriately. “If a property isn’t priced right, it will suffer price drops and longer market days,” she said. (Photo by Brandon Richardson)
Pending sales for single-family homes are down 10.5% compared to April last year, while closed sales are down 8.6%, Jones said. “A slower rate of sales and a few more offers in the market lead to an increase in inventory,” he said. The slowdown is a bit surprising as interest rates have not risen.
Maruja Tosses, a real estate agent at Keller Williams Coastal Properties, confirmed the slower sales rate. In her experience, the houses she shows are on the market for an average of 30 to 45 days – a significant drop from last year. “About 12 months ago they would go for the weekend,” she said.
The current market is softer than it was a year ago, but Whipple said buyers shouldn’t be mistaken and believe they have more leverage in undercutting properties. The sale-to-list ratio of single-family homes, which compares the price at which homes are listed to what they are ultimately sold at, decreased by just 0.6% between April 2018 and April 2019, she explained. The same applies to the sale-to-list ratio of the condominium market, which has fallen almost identically over the past 12 months.
Maruja Tosses is a real estate agent at Keller Williams Coastal Properties. She told the Business Journal that single-family homes valued at $ 550,000 are currently available in North Moncton and across from the Moncton Exchange. (Photo by Brandon Richardson)
The average price for single-family homes was $ 633,000 in April 2019, Jones said – up 1.3% from April 2018. The condominium market has been much more inviting for first-time buyers, he said, where the average price is currently around $ 380,000 . “A lot of young families, young people, start out in condominiums,” he said.
Tosses said she is beginning to see a generation change in home buyers. “The millennials are coming in. . . They’re not that worried about getting married, but they want their retirement to come first. Knowing that buying a home would get them retired faster, they seem to get that message and step in. “
West and North Moncton are generally more affordable areas to find a home or apartment, Jones said. The 90803 zip code, which includes Belmont Shore and Naples Island, has some of the most expensive homes. However, every real estate agent who spoke to the Business Journal noted that Moncton is likely the cheapest beach town in Southern California.
“Especially when the house is on Belmont Shore, where they make over $ 1 million. . . The same houses in Orange County would have cost $ 3-4 million, “Tosses said. “I often tell people that if you want a cheaper beach life, this is probably your place.”