What’s Happening in Atlantic Canada Real Estate?

The Atlantic Canada real estate market continues to be a success story after decades of a population exodus, anemic economic growth, and a lacklustre housing industry. Today, however, even as the Bank of Canada (BoC) raises interest rates, the Maritimes is enjoying robust growth compared to the rest of the country. And, perhaps to the surprise of many homebuyers and market analysts, housing affordability remains ubiquitous in the eastern provinces.

So, what exactly is happening in Atlantic Canada real estate anyway? Let’s take a look at some of the recent numbers from the nation’s eastern seaboard.

Nova Scotia

According to the Nova Scotia Association of REALTORS® (NSAR), residential property sales tumbled nearly eight percent year-over-year in September, totalling 881 units. On a historical basis, home sales were 25 percent below the five-year average and a little more than 16 percent below the decade average for this time of the year. Year-to-date, Nova Scotia home sales were down 20.5 percent from the same time a year ago.

The MLS® Home Price Index (HPI), which is considered a more reliable measurement for home prices than relying on average or median gauges, was up close to eight percent year-over-year in September, reaching $398,000. That said, average home prices sold rose 5.5 percent to $401,622. Year-to-date, the average price of a property sold in the Nova Scotia real estate market edged up 1.5 percent year-over-year to $426,593.

Here is a breakdown of the property categories:

• Single-Family Homes: +6.9 percent to $391,200
• Townhome: +10.4 percent to $501,600
• Apartment: +15.7 percent to $450,500

On the supply front, housing stocks improved in September, with the number of new residential listings climbing more than 15 percent to 1,393 units. Active residential listings jumped 7.1 percent to 3,625 units. Historically, new and active listings were one percent and 10.7 percent below the five-year average, respectively.

New housing construction activity slowed compared to the same time a year ago, coming in at 226 units, down 52 percent year-over-year, according to the Canada and Mortgage Housing Corporation (CMHC).

New Brunswick

Residential property sales advanced at an annualized rate of 5.5 percent in August, totalling nearly 1,000 units, according to the New Brunswick Real Estate Association (NBREA). In the first eight months of 2023, home sales plummeted 17.4 percent compared to the same span a year ago. They were also 4.3 percent below the five-year average.

Home prices recorded steady increases to finish the summer. Real estate association data show that the overall HPI composite benchmark prices jumped 2.6 percent year-over-year to $293,800. The average price of homes sold in August surged more than 13 percent to $307,910. On a year-to-date basis, the average price edged up 1.3 percent to $301,344.

Here is a breakdown of the different property categories in the New Brunswick real estate market:

• Single-Family Home: +2.7 percent to $294,800
• Townhome: -3.9 percent to $251,000
• Apartment: -0.2 percent to $268,800

Housing stocks were tight in August, supporting price growth. The number of new residential listings plunged by nearly nine percent, with 1,230 units. Active residential listings declined by 18 percent at the end of August, with 2,830 units hitting the market. New listings have not been this low in 15 years, while active listings have not seen these levels in two decades.

New housing construction activity expanded slightly in August, totalling 600 units, up at an annualized rate of seven percent, CMHC data show.

Newfoundland and Labrador

The number of homes sold in the Newfoundland and Labrador real estate market slipped 1.4 percent year-over-year in September, totalling 562 units, association data confirm. According to the Newfoundland and Labrador Association of REALTORS® (NLAR), home sales declined nearly 18 percent year-to-date, totalling 3,942 units. On a historical basis, home sales were relatively flat compared to the five-year average but nearly 18 percent above the decade average for the month of September.

The benchmark composite price for homes sold in the provincial real estate market increased by nearly four percent to $295,400 in September. The average price of homes sold in September advanced five percent to $302,651. The year-to-date average price of homes sold last month was flat at $293,577.

Here is a breakdown of residential property prices:

• Single-Family Homes: +3.7 percent to $297,800
• Townhomes: +4.1 percent to $275,600
• Apartments: +2.4 percent to $229,000.

On the supply front, conditions were mixed in the Newfoundland and Labrador housing market association data show.

New listings were unchanged at 819 units – 5.9 percent below the five-year average – but active listings plunged approximately 22 percent to 2,814 units (this was 34.2 percent below the five-year average).

New housing construction activity slowed in Newfoundland and Labrador, according to the federal housing agency. In August, housing starts tumbled 34 percent to 67 units.

Prince Edward Island

In August, residential property sales in the Prince Edward Island real estate market surged nearly 14 percent year-over-year, totalling 215 units, local association statistics show. Home sales were 5.7 percent below the five-year average and 3.6 percent below the ten-year average for this time of the year. Additionally, on a year-to-date basis, home sales tumbled close to nine percent year-over-year, totaling 1,300 units.

According to the Prince Edward Island Real Estate Association (PEIRA), home price growth was sideways in the middle of the second quarter. The composite HPI benchmark price was unchanged at $367,400, and the average price of homes sold in August inched 1.7 percent higher to $390,876. Year-to-date, the average price slipped 1.8 percent to $386,835.

Residential property supplies in the PEI housing market showed remarkable improvement. PEIRA numbers show that the number of new listings advanced 10.5 percent to 358 units, and active listings swelled 8.1 percent to 1,041 units. On a historical basis, new and active listings were 3.7 percent and 12.8 percent above the five-year average, respectively.

New housing construction activity levels improved slightly in August, totalling 74 housing starts, up nearly 14 percent from the same time a year ago.