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The average sale price in the Moncton housing market decreased by 5.9 per cent between 2022 and 2023 (from $315,000 in 2022 to $333,496 in 2023), while the number of sales decreased by 10.2 per cent (from 3,220 in 2022 2,890 in 2023). Moncton is currently a sellers, and given its 3.2 months of current inventory, it’s likely to transition to sellers’ conditions in 2024. The city is likely to experience a five-per-cent increase in average residential prices and an increase of three per cent in sale transactions in 2024.
The top three neighbourhoods likely to be the most desirable in Moncton next year are North Moncton, Dieppe Fox Creek and Riverview East. Semi-detached homes are expected to see the most demand in 2024 but when it comes to liveability, newcomers to Moncton are looking for homes near the city’s core within walking distance to work and shopping; more affordable homes, especially due to the rising cost-of-living; and proximity to public transit, particularly if only a single vehicle cannot be used as an alternative.
When it comes to housing supply, Moncton, like other Canadian regions, is experiencing persistent low inventory. Specifically, and increase of new Canadians to the region coupled with “move-over” buyers are adding to the area’s housing supply challenges. Should mortgage rates begin to lower, an increase of buyers will likely complete for the limited inventory.
“In response to higher interest rates and a general fear of “missing out on the market,” we’re seeing first time buyers shift their home-buying expectations by moving down-market,” says Roger LeBlanc, Owner, RE/MAX Avante. “First-time homebuyers who once expected to buy a single-detached or a semi-detached are now shifting their buying expectations toward a semi or a ‘mini-home,’ given the market.”
Top Trends:
- Moncton is likely to remain a seller’s market in 2024.
- Due to rising costs, Moncton is seeing an increased demand for semi-detached homes.
- More new Canadians to the area and move-up buyers are stifling an already limited inventory.
- Moncton’s condo market is being driven by first time buyers but also downsizers looking for high-end condo-townhomes.
- Semi-detached homes are likely to see the greatest demand in 2024.
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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
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Moncton housing market to favour 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 an increase of 15% in average price to $246,946 across all property types.
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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% nation-wide. Here’s the regional break-down:
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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 neighbourhoods,” 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.”
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