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Moncton Real Estate Market Very Active in 2019

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Moncton Real Estate Market Very Active in 2019
3 min. read
Moncton Real Estate

Image: Wangkun Jia/Shutterstock.com

While demand may be decreasing in some Canadian property markets, the Moncton real estate market in 2019 appears to be very active. Prices may not currently be increasing—though they’re still better than a year ago—but this doesn’t seem to be discouraging buyers right now.

The 205 units sold in February 2019 in Moncton, a 5.7% increase, represented the second-best February performance since 2007, and the 382 units sold over the first two months of this year was a 4.1% improvement on the number sold over the same period of the previous year.

 Units SoldChange from 2018
February 2019 2055.7%
Year-to-Date 20193824.1%

The total dollar value of residential sales tells an even more dramatic story, with the total volume of $38.3 million representing a 12% rise from the previous February and a new record for the month.

Prices, on the other hand, showed little movement year-over-year. The composite benchmark price is a good indicator of trends, and the number for February 2019 across the Greater Moncton area, $177,600, was up just 1.6% over the same month last year. Breaking the numbers down by property type, February 2019’s benchmark price for semi-detached homes was $178,900, for single-detached properties it was $186,200, while for apartments it was $168,800 and for townhouse/row units it was $142,300. These represent year-over-year increases of 0.5%, 1.7%, 5.7% and 7.9%  respectively.

Property TypeFebruary 2019
Benchmark Price
Change from
February 2018
All Property Types$177,6001.6%
Semi-Detached$178,9000.5%
Single-Detached$186,2001.7%
Apartments$168,8005.7%
Townhouse/Row Units $142,3007.9%

Inventory was down quite considerably in Moncton in February 2019. There were 1,400 units available at the end of the month, which was 22.8% less than were recorded at the same time last year. The number of new residential listings was 253, which was 26.7% down from February 2018 and marked the lowest level for eight years. These figures mean that at the end of February 2019 there were just 6.8 months of inventory, which was a big drop from the 9.3 months seen at the end of February 2018.

 February 2019
No. of Units
Change from 2018
Inventory1,40022.8%
New Listings25326.7%

Chris Constantine, President of the Greater Moncton REALTORS® du Grand Moncton, weighed up the lack of price grow against the market’s other factors:

“With historically strong demand and the lowest inventories in a decade, the recent moderation in price growth may prove to be only a temporary dip.”

The price growth moderation he references tells a story that is not described by CREA’s year-over-year figures. Prices have been going down in Moncton for several months.

 February 20191 month ago3 months ago6 months ago12 months ago3 years ago5 years ago
Greater Moncton$177,600-0.46-2.58-3.511.629.4214.31
Moncton$180,300-1.12-0.73-0.938.0810.8818.79

For the Greater Moncton Area, the price reduction for the real estate market as a whole is less than it has been in recent times. This may be due to the increased demand caused by earlier price drops. In the city of Moncton itself, however, prices are dropping faster now. With the current reduced inventory here, and all other factors being equal, one can probably predict that prices will firm up somewhat and that we may then see a decrease in the amount of activity.

 



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