The housing market in New Brunswick is experiencing an unprecedented boom in 2021 that is in part being driven by the pandemic, according to figures released by the Greater Moncton Realtors.
Homes in the Greater Moncton area are selling for approximately 30 per cent above more than they were this time last year, according to Ryan Davison, the president-elect of Greater Moncton Realtors.
“It is on fire,” said Davison.
He said prices rose by about 15 per cent during 2020. But price increases have accelerated over the past two months, pushing prices about 30 per cent higher than pre-pandemic levels in January and February of 2020.
In February of this year, the total dollar value of housing sales in Greater Moncton jumped a staggering 88 per cent over February 2020, said Davison, even though the number of listed homes on the market was down 15 per cent for the month.
He said the total value of homes sales in February 2020 was $47,374,872 compared to $89,067,549 in February 2021.
The average selling price for a home in Greater Moncton is currently, $259,587 according to Davison.
He says many of the buyers are coming from larger centres such as Toronto, where people sold their homes for big dollars and headed for cheaper homes on the east coast.
He said some people are continuing to work for employers outside of the province while working from their new homes in New Brunswick. Others, he said are choosing to retire early.
“Retirees seem to be pulling out of Ontario markets sooner than planned to capitalize on high prices there and secure a nice nest egg with the difference in what they do not have to spend in N.B.”
He also said some people are choosing to move to the region because there are fewer cases of COVID-19 and lockdown restrictions.
“They can sell there and come here and pick up a house that they enjoy and is great and they can either park some money or even look at a cottage or something like that,” Davison said.
The boom is being felt right across the province, said Davison, and it is also being driven by lower interest rates and a shortage of inventory on the market which is leading to bidding wars.
“We are seeing people saying ‘you know what my job, because it is COVID, allows me to work from home and I cleared it…