Overlooked market sees full year of monthly price gains

Greater Moncton has seen over 12 months of year-over-year price gains, with its September MLS Home Price Index coming in at +4.2% year-over-year.

This, despite the average price decreasing 7.9% year-over-year. The Moncton Real Estate Board argues the average price doesn’t provide the most accurate picture of market performance.

“While the use of average price information can be useful in establishing trends when applied over a period of time, i.e. six months or longer, the Greater Moncton Realtors du Grand Moncton cautions that an average price does not indicate the actual value of any particular property,” it said.

Another home price index, Royal LePage’s Composite saw aggregate prices in Moncton increasing 1.5% year-over-year.

Sales, meanwhile, were up 7.9% year-over-year last month.

 “The year-to-date sales figure continues to reflect conditions that are now five months in the rear-view mirror, and it masks how strong activity has become, most notably September sales setting a new all-time record for that month,” Trent Wilkins, president of the Greater Moncton Realtors du Grand Moncton, said. “With activity up and supply trending lower, the market is currently in better balance than it has been in years, and that is showing up in the MLS HPI data.”

With the country’s investors traditionally focusing on markets in Alberta, British Columbia, and Ontario, it may seem like out-of-the-box thinking to consider smaller markets.

But with new mortgage rules that are expected to impact larger markets more than their smaller counterparts, it may be time for speculators to look outside the three major provinces to see what deals can be had.

Even if Atlantic Canada fails to entice you, Moncton’s recent performance is a small reminder that small markets may contain some gems.

Related stories:
Canada-wide forecast: What investors need to know
Sizzling markets on investors’ radar
 

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