Jan 2023 – Real Estate Market Update – New Brunswick

What a year we left behind, a real rollercoaster, in this blog post I will review the 2022 Real Estate Market Data for Greater Moncton and Surrounding Areas, including current trends, conditions in the real estate market and its direction.

Let’s talk about home prices, sales volume, inventory levels and demand. Starting with sales numbers month over month.

2022 SALES

We are going to start with the number of sales per each month; in general, January and February are relatively slow months, with lots of snow in the area and a slowdown in sales activities; we can see this reflected in the numbers with a sales increasing 50% in March in comparison to January/February and with a peak in sales in May.

Why the sales jumped 50%, my professional opinion is that it is directly related to anticipation of the summer season for the Atlantic Coast, as well as the golden rush to lock in the lowest mortgage rates in the history before the Bank of Canada’s rapid increase of interest rate from 0.25% in March 2022 to 4.25% in December 2022, bringing higher prime rates and higher mortgage rates along with it. 

The effects of higher borrowing costs are working their way through the Canadian economy, affecting housing prices, mortgages and affordability, and you can already see the effect on the Sales chart; from May 2022 till the end of the year, we experience a decrease of 64% in sales from its peak.

SALES VOLUME

We can see the same picture reflected on the Sales Volume Chart, a peak of 162M in May and a steady decline to 56M per month in December 2022, a 65% decrease in Sales Volume since May 2022.

Last two years, New Brunswick and Canada, in general, experienced a hot  Seller’s market, with bidding wars and no conditions offers; this is no longer the case since  May 2022; we slowly transitioned into a Buyer’s Market; what does it mean?

EXPIRED LISTINGS

Listings are staying on the market much longer, and those that are not priced right are expiring due to no offers; since May 2022, the increase in expired listing is 182%!

Conditions are back in the play,  offers are coming in at below market price with finance, insurance, inspection  conditions

Source as Greater Moncton REALTORS® du Grand Moncton.

What to expect in 2023? 

Most economists and experts expect cooling to continue into 2023, we still have high mortgage rates, low inventory on the market and uncertainty about where the Bank of Canada’s interest rate cycle will finally peak. 

The pain of higher interest rates could hit the pre-construction market especially hard in 2023, as prices would continue to decline, there could be some opportunities for a buyer to get some value.

Are you looking to buy or sell a home? I can help you navigate the landscape, the process and achieve your goals. Whether you’re a first-time homebuyer or a seasoned investor, I have the knowledge and expertise to guide you through every step of the way. With my extensive network of contacts and resources, I can provide you with access to the best properties and opportunities in the market. Whether you’re looking for a cozy starter home or a luxurious mansion, I have the determination to help you find the perfect property. 

Don’t hesitate – to contact me today to start your journey to buying or selling your dream home.