The Moncton actual property market is anticipated to expertise “monumental momentum” in 2018
MONCTON – In 2017, home sales in the greater Moncton area rose 9.2 percent year over year, breaking a record for the region set a decade ago. Greater Moncton REALTORS president says there is no sign that growth will stop.
Jesus Machado said in an interview with Huddle that there was “tremendous momentum” in 2018 as the most intense activity occurred at the end of last year. A new city report that building permits broke records again also signaled that things are going in the right direction.
“Nobody can say for sure what’s going to happen, but we’re using numbers to understand where this could go,” Machado said. “There are no signs that this trend will change anytime soon.
“The good thing about Moncton is [it’s not growing] fast like BC or Ontario. The growth here is more sustainable, more predictable and more constant, and I like it that way because, in a way, it is more predictable. “
In December 2017, the value of all real estate sales reached $ 28.7 million, 8.5 percent more than in the same month of 2016. New entries fell by 21.5 percent compared to December 2016 to 153 units.
Meanwhile, more people from all over Canada and abroad have moved to the area, Machado said.
“We know that there is more migration to the city because we are in contact with the city and organizations like the 3plus Corporation,” he said. “Properties are cheaper in Moncton than pretty much anywhere else in Canada. So there is a certain influx of people who have businesses online for example. You can operate [anywhere], they are not assigned to a location.
He said houses are much cheaper in Moncton, a plus for people coming from a more expensive market.
“If you have someone who lives in BC or Ontario and has a $ 1.2 million house that isn’t a huge house, we’re talking about a decent middle class house and they sell it, they can pretty much buy a house House one step up here and still have a little pocket money. ”The customer review has been automatically translated from German.
However, prices are rising, although it is still cheaper to buy here.
As supply fell and demand rose, home prices rose. The entire MLS Home Price Index (HPI) for Greater Moncton rose 6.3 percent in December 2017 compared to the same month last year. Semi-detached and single-family houses as well as apartments became more expensive.
Only for townhouses was there a slight price decline of 1.5 percent during this period. Compared to five years ago, the composite HPI benchmark for Greater Moncton shows an increase of 14.72 percent. There is also less stock on the market right now.
These changes create a more balanced market, Machado said.
“So it’s good for sellers, not so good for buyers, ”he said. “A few years ago we had a buyer’s market. Buyers had a lot of room to negotiate. This will be a more balanced market. “
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Machado said there is a lot of investment and capital going on in Greater Moncton right now.
“There is a lot of construction going on on the commercial side. This also creates many direct and indirect jobs in the construction sector. And once these companies operate, it will create more jobs, ”he said.
Greater Moncton’s location as a geographic center is good, as is the affordability of real estate, Machado said. Although he sees a certain degree of urbanization, it is still not comparable to larger cities. Because the land prices remain cheap and the city center can be reached with a short commute.
“We are not that far along compared to larger cities when it comes to people moving into condominiums in the center of the city,” he said. “However, we are seeing an increase in the number of people asking about this option.”
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