New Brunswick Housing Market Maintains Affordability as Prices Rise

Over the course of the last year or so, housing prices across the provinces of British Columbia, Ontario and Quebec rose to never-before-seen levels, specifically in smaller cities and towns. Driven by the demand for more living space within less densely populated communities, as well as record-low interest rates increasing people’s purchasing power, real estate prices in these provinces have pushed many buyers out of the market. This is naturally leading many hopeful homebuyers toward more affordable areas, such as the New Brunswick housing market.

Across the province of New Brunswick, the major marketplaces, such as Northern and Valley Regions, Greater Moncton, Fredericton and Saint John, experienced similar, soaring levels of demand and price growth. In the second half of 2022, those levels have stabilized to pre-pandemic levels, resulting in less risk to buyers. Let’s take a look at New Brunswick’s current market stats.

Unprecedented Activity in the New Brunswick Housing Market

As one of the smaller provinces in Canada, New Brunswick typically falls below the national average when it comes to real estate market activity. However, 2021 was a year like no other. Mostly driven by prospective buyers from other provinces and ultra-low interest rates, properties were swept off the market at an outstanding rate. 2022 has seen a return to predictable levels while still boasting one of Canada’s most affordable housing markets.

In November 2022, the MLS System logged a total of 698 units sold in New Brunswick – a 31.2 per cent decrease from November 2021. This is slightly below the five- and 10year averages for the month of November – 12.5 per cent and seven per cent, respectively. All areas of the province experienced this decline, including Northern and Valley Regions (-13.1 per cent), Greater Moncton (-31 per cent), Fredericton (-36.8 per cent), and Saint John (-38.7 per cent).

The loss in unit sales was mirrored in the dollar volume of all home sales, which was $185.1 million, a decrease of 24.9 per cent from the same month in 2021. This is largely due to the number of newcomers in the region depleting over 2022, thus driving down sales. Rising interest rates are also a factor.

Compared to 2019, the current average price of a recreational property in the province continues to remain high, with the average price currently sitting at $265,250, a gain of 9.2 per cent from November 2021. This price surge in recreational property is driven by supply issues, according to Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “In today’s real estate landscape, with increased demand and ongoing supply issues putting pressure on prices and sparking bidding wars, industry professionalism is of utmost importance. Recreational markets across Canada are feeling the pressure, and without a solution to address supply issues, we are running out of affordable options for Canadians.”

This issue of tightening supply levels is not confined to the recreational market in New Brunswick, either. Residential listings in real estate markets across the province are higher than last year’s numbers yet fall short of the five- and 10-year averages. At the end of November, active residential listings numbered 2,649 units, increasing by 20.7 per cent from the end of November 2021. Compared to the five- and 10-year averages, November 2022 listings were down 26.2 per cent and 48.8 per cent, respectively. This is the third-best showing for this month in history.

This decline in inventory has had a drastic effect on the average sale price, which realized an advancement of 18.5 per cent to a high of $290,669. This figure is nearing half of the national average – a factor that is further fuelling the migration of out-of-province homebuyers to the New Brunswick market, as well as to other local markets across Canada’s East Coast.

What to Expect in New Brunswick?

New Brunswick is a sector of Canada’s housing market that has enjoyed unprecedented gains over the last two years. Although the numbers are now stabilizing, there are still great listings to be found in this underrated province, prompting Canadians and immigrants alike to take advantage of low real estate prices.

With interest rates remaining low, and housing prices expected to moderate further in some regions across Canada, it is projected that the New Brunswick real estate market will maintain its momentum of demand.