Home sales and prices in New Brunswick fell slightly last month as larger declines were reported in other major Canadian cities, recently released statistics show.
About 1,270 homes were sold across the province in June, according to the New Brunswick Association of Realtors. This is down 3.7% from June 2021, but still more than 28% above the 10-year average.
Last month, 432 homes sold in the greater Moncton area, which includes Dieppe, Riverview and surrounding areas to the southeast. This is 3.1 percent less compared to the same month last year.
In Toronto, the number of homes sold was down 41 percent, while in Vancouver, sales were down 35 percent compared to June 2021.
“Although the major markets are starting to show some slowdown, in the greater Moncton area we are still experiencing significant population growth and it appears to be accelerating, if at all,” Mike Power, president of Greater Moncton Brokerage, said in an interview .
Home prices have soared during the pandemic as the province broke records for population and low interest rates allowed people to buy more expensive homes. This has led to fears that people will be pushed out of the market as rental costs have also risen.
The median home price in New Brunswick has risen sharply during the pandemic. (New Brunswick Association of Realtors/Submitted)
Power said in a news release with the latest statistics that it’s reasonable to expect the Moncton market to change as the Bank of Canada continues to raise interest rates.
He said they are closely monitoring the statistics for signs that the market is weakening, although a news release described it as still “full steam ahead for our local market.”
“We’re starting to see what we think could be the beginning of a tipping point,” Power said in an interview. “Although the statistics don’t support it yet. Statistics tend to track what actually happens on a day-to-day basis. So it will be a while before we know if this is a trend or not.”
He said they are starting to see fewer people competing for each property.
The benchmark price for a single-family home in the Moncton area was $348,600 in June, down from $353,200 in May. This price is up 107% compared to five years ago.
The benchmark figure is used instead of an average to reflect homes considered more typical of low- or high-priced properties.
Looking at just the city of Moncton, that benchmark price for a single-family home was $363,700. In Dieppe it was $440,700, while in Riverview it was $331,000.
In June, the benchmark price for a single-family home in the province was $299,900, up nearly 30% from a year earlier.
Increases in home sales were reported in northern parts of New Brunswick, while declines were reported in Saint John (-3 per cent), Greater Moncton (-3.1 per cent) and Fredericton (-10.8 per cent) compared to June 2021 Mr.
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