The Ups and Downs of Moncton’s Housing Market

Lot 98-06 Westshore - Point du Chene

2011 has been an interesting year for new housing in Moncton. Depending on who you ask, and what segment you are looking at, the market has seemed either good or bad.

Multiple Starts Down
Significantly in Greater
The new homes market in Greater
Moncton recorded a year-over-year
decline of 29.5 per cent in multiple
starts during the second quarter of
2011.  Activity in the rental market,
in particular, was weak during the
second quarter of 2011, with a total
of 26 apartment starts in the Moncton
CMA, all in Moncton City proper. In
comparison, 103 apartment starts
were recorded in Moncton City
during the same period last year, with
an additional 48 units in Riverview.
Semi-detached starts, which were
off to a slow start during the winter
months, rebounded during the second
quarter, with a significant year-overyear increase in starts. Despite the
strong performance, the number
of unabsorbed units, which had
previously peaked at a historically
high level in 2009, continued to trend
downwards in 2011 as supply and
demand continued to move towards
a more sustainable balance. Even
though semi-detached homes remain
the starter home of choice in Greater
Moncton, a growing number of new
units have started to command higher
prices as consumers seek increased
Single starts were solid in the
Moncton CMA during the second
quarter.  A notable year-over-year
increase in both Moncton City and
the Town of Riverview, however,
was offset by fewer starts in Dieppe
City and the remainder of the CMA,
resulting in a 7.6 per cent, year-overyear decline for the quarter. Despite
fewer starts during the second
quarter, the average price of a newly
absorbed, single-detached unit was up
5.2 per cent to $265,634. Year-to-date,
the price change was negligible, down
0.2 per cent.
Single Starts Decline in the
Provincial Capital
In the second quarter of 2011, singledetached starts in Fredericton were
down 24.6 per cent to 86 units. The

When looking for housing data, we frequently turn to the Canada Mortgage and Housing Corporation (CMHC). CMHC is Canada’s national housing agency. While they are perhaps best known for providing mortgage loan insurance, they also are a leading source of housing data, and one of the first places market researchers turn to when looking at trend in the real estate market.

Each quarter they release a quarterly ‘Housing Now’ report for various cities across Canada. The report provides insightful analysis of local housing markets and a summary of housing statistics, including starts, completions, dwellings under construction, absorptions, real estate sales and home prices, as well as key economic indicators.

Here are some of the CMHC highlights about the real estate market in Moncton:

Apartments Down

New multiple starts (i.e. apartments, condos and row houses) recorded a substantial decline of 29.5 per cent a year-over-year decline during the second quarter of 2011. New rental starts were particularly week, with just 24 new apartments breaking ground in the Moncton region. This compares to 151 apartment starts in the region during the same period in 2010

Semis Up

Semi-deatched starts did significantly better. After a slow winter, they rebounded during the second quarter, with 184 new duplexes getting underway—a 19.4% year-over-year increase. While semi-detached homes remain the starter home of choice in Greater Moncton, a growing number of these new units are being built with increased amenities and commanding higher prices.

Mixed Singles

Single-family home starts were a mixed story during the second quarter, While parts of the region—notably Moncton and Riverview saw notable increases, they were more than offset by fewer starts in the rest of region. As a result, single family starts were down 7.6% during the period. Despite the fewer starts, however, the average price of a single-detached house was up 5.2 per cent to $265,634 over 2010.

 Housing Activity Summary of Moncton CMA Q2-2011

You can download the full report from the CMHC Publications and Reports page.

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