New Brunswick's housing market surged in November 2024, defying trends with remarkable growth in single-family homes.
Home Run
The latest MLS® Home Price Index (HPI) revealed that the benchmark price for single-family homes surged by 14.4% compared to November 2023, reaching $327,600. This impressive figure highlights a strong demand that continues to outstrip supply, highlighting a significant upward trend in the region's real estate values.
This trend affects the entire market, with the average price for homes increasing to $326,500, which is a 14.2% rise compared to last year. Apartment prices also saw a considerable jump, increasing by 13.9% to $294,500, while townhouse and row unit prices went up by 8.5% to $287,100.
Despite the promising rise in property values, the number of homes sold in November 2024 only saw a modest year-over-year increase of 1.5%, totaling 757 units. Home sales still sit 9.4% below the five-year average, though they are 6.3% above the 10-year average, signaling a longer-term confidence in the market’s stability.
The local areas show varied activity, with Fredericton leading with a significant 14.4% increase in home sales. Meanwhile, the Northern and Valley Regions and Greater Moncton saw more modest gains of 1.4% and 0.8%, respectively. In contrast, Saint John experienced a decline of 8.9% in sales, highlighting regional disparities within the market.
Mike Power, Chair of the New Brunswick Real Estate Board, commented on the month’s dynamics, stating, “November saw a slight cooldown in sales compared to October, though totals remained consistent with the same period last year and are aligned with the long-run average.” He also pointed out a significant decline in the number of newly listed properties, which fell to their lowest November level in five years.
New listings in November decreased by 4.2% year-over-year to 799 units. This decline contributes to an emerging challenge of supply shortages, as active listings also dropped below the 3,000-home mark for the first time since spring, settling well below the 10-year average for November.
Amidst these supply constraints, the federal government has stepped in, announcing an investment of over $7.5 million to construct 39 new homes in the province. This initiative aims to alleviate some of the pressures and ensure a balanced and accessible market.
While challenges persist, the strength of New Brunswick's real estate market, particularly in single-family homes, is evident. With prices consistently outpacing last year's figures, the outlook remains optimistic for property owners and investors in the region.
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