- Among all Canadian provinces, New Brunswick has the most one-year increase in home prices.
- The housing inventory in New Brunswick fell from 4.8 months in October 2020 to 2.6 months in October 2021.
New Brunswick housing market trends are being compared to those in Ontario, with New Brunswick having the biggest one-year increase in property prices among all Canadian provinces.
According to statistics issued by the Canadian Real Estate Association on Monday, the average price of a home in New Brunswick has increased by 24.5 per cent in the last year, rising from $203,133 in October 2020 over $252,871 in October 2021.
Ontario had the second-highest increase, with a 22.9 per cent year-over-year increase in its average home price.
“In terms of price increase, New Brunswick is right up there with Ontario, and that’s been the case for quite some time,” said Shaun Cathcart, a senior economist with the Canadian Real Estate Association.
New Brunswick’s housing inventory decreased from 4.8 months in October 2020 to 2.6 months in October 2021.
That ratio, calculated by dividing the number of homes for sale by the number of properties sold every month, was the lowest in New Brunswick history, according to Cathcart, who added that the province had 14 months of inventory.
An inflow of buyers from outside the province
Danielle Johnson, a real estate agent in the Greater Moncton area, was not surprised by the statistics.
“The numbers perfectly mirror what we’ve been feeling,” said Johnson, who has worked in the industry for 16 years. “The real estate business has been on a never-before-seen trajectory.”
According to Johnson, the shift has been fueled by an inflow of out-of-province buyers — mainly from Ontario — who sell their homes and buy-in, New Brunswick without taking out a mortgage.
According to Johnson, prices have risen due to limited inventory, as planned buyers submit blind bids to be the one who closes the transaction.
“We’ve seen a price increase,” she added, “but that’s all related to supply and demand.”
“Of course, if there are 25 people interested in the same home, they’ll put blind offers in, and unfortunately, they’ll be competing against other out-of-province purchasers who have the financial resources to bid each other based on the fact that their market has sold very high.”
‘Build, build, build,’ says the association.
According to Cathcart, it’s tough to predict what the real estate market will do next, although rising interest rates could slow things down.
Simultaneously, the prospect of interest rate hikes may be encouraging buyers to buy now to lock in the present rate.
Regardless, Cathcart believes the current situation may be handled by expanding the number of homes on the market, noting that raising the housing supply was a key feature of both major political parties’ policies in the previous federal election.
He explained, “Our message has been, like, build, build, build.” “Continue to construct. Make it a national endeavour, for example.”
“I’m not sure how you do that, but it appears that if you want your kids to be able to purchase a home like past generations did or to be able to live in the area where they grew up, we need to start building additional housing since what’s there now is, sort of, occupied.”
Source: CBC News
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