REMAX REPORT YEAR-TO-DATE
Thursday, October 20th, 2005
• Out-of-province purchasers also helped bolster sales throughout 2005, explains Polzler. “Thirtyfive per cent of major Atlantic centres cited purchasers from other parts of Canada and the United States as a factor in their marketplace. Those centres included Summerside, Bridgetown, Annapolis Royal, Digby, Pictou County, Moncton, Saint John, and Miramichi.
• Oceanfront property remains coveted in most markets on the Atlantic seaboard, with
appreciation outpacing average price increases in many areas. The East Coast continues to be attractive to European and Middle-Eastern purchasers because of affordability. Prices in Atlantic Canada pale in comparison to neighbouring Cape Cod and Martha’s Vineyard.
Red-hot Atlantic Canada housing market
“Record performances still expected in 2005”
Mississauga, ON (Oct. 17, 2005) – Despite concerns over rising energy costs, most major
housing markets in Atlantic Canada are expected to post record performances in 2005, according
to RE/MAX.
The RE/MAX Atlantic Market Trends Report found that 41 per cent of markets surveyed in the
region had experienced some softening in sales activity in September, but most had rebounded by
month’s end. Leading in terms of percentage increase in unit sales is the Northern New
Brunswick region (including Miramichi), where year-to-date figures available* are up a
substantial 27 per cent over 2004 (341 vs. 268 units). Average price appreciation is greatest in
New Brunswick’s Edmundston where values have climbed 22 per cent from $90,000 to $110,000
year-to-date.
“Increases in energy costs may have served to deter some purchasers from entering the market in
September, but once the initial shock wore off, activity across the region recovered,” says
Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic
Canada. “Consumer confidence levels overall remained high in most of the markets surveyed.
Purchasers were buoyed by solid economic performance, lower unemployment levels, and
relatively stable interest rates. The recent rate hike may have even prompted some fence sitters to
enter the residential marketplace.”
The top five performing markets in the Atlantic Provinces year-to-date in terms of unit sales are as follows: Northern New Brunswick at 27.2 per cent (341 vs. 268 units), Bridgetown, Annapolis Royal, and Digby at 23 per cent (140 vs.114 sales), Grand Falls at 18 per cent (107 vs. 90 units), Saint John at 17.7 per cent (1,164 vs. 989 units), and Edmundston at 14 per cent (142 vs. 125 units). Price increases were greatest in Edmundston at 22 per cent, Middleton, Greenwood at 20 per cent ($130,000 vs. $109,000), Moncton at 8.6 per cent ($123,681 vs. $113,897), Bridgetown, Annapolis Royal, and Digby at 8.5 per cent ($93,500 vs. $86,200) and Grand Falls at eight per cent ($135,000 vs. $125,000).
Luxury home sales were a serious factor in 53 per cent of the markets, says Polzler.
Uncharacteristically strong activity was reported in nine of the 17 markets surveyed, including
Charlottetown, Summerside, Bridgetown, Annapolis Royal, Digby, Middleton, Greenwood,
Halifax-Dartmouth, Pictou County, Moncton, Bathurst, and St. John’s, Mt. Pearl, Conception
Bay.
“The significant increase in upper-end sales may have contributed to the double-digit appreciation
reported in some markets,” notes Polzler. “These sales would artificially inflate prices in areas
where smaller volumes were reported.”
First-time buyers continued to be the engine driving real estate activity in the Atlantic. Entrylevel purchasers fuelled demand for housing priced from $75,000 to $125,000 across the board. A shortage of this type of product was reported in 29 per cent of markets, including Summerside, Bridgewater, Pictou County, Grand Falls, and Fredericton. Low inventory levels overall were reported in 35 per cent of markets – Summerside, Middleton, Greenwood, Bridgewater, Truro, Pictou County, and Grand Falls. Conversely, 41 per cent of markets reported an increase in the number of homes listed for sale – Charlottetown, Bridgetown, Annapolis Royal, Digby, Halifax- Dartmouth, Saint John, Edmundston, Fredericton, and St. John’s.
Out-of-province purchasers also helped bolster sales throughout 2005, explains Polzler. “Thirtyfive per cent of major Atlantic centres cited purchasers from other parts of Canada and the United States as a factor in their marketplace. Those centres included Summerside, Bridgetown, Annapolis Royal, Digby, Pictou County, Moncton, Saint John, and Miramichi.
Highlights:
• Given the strength of the first-time buyer segment of the market, it comes as no surprise that
the popularity of condominium apartments has surged in Atlantic Canada, particularly
Halifax-Dartmouth, Truro and Fredericton.
• Bungalows, however, remain the product of choice by far, fuelled by first-time buyers,
boomers and retirees. (Unlike other areas of the country, single-family detached homes
remain an affordable entry-point for most first-time buyers in the Atlantic)
• Oceanfront property remains coveted in most markets on the Atlantic seaboard, with
appreciation outpacing average price increases in many areas. The East Coast continues to be attractive to European and Middle-Eastern purchasers because of affordability. Prices in Atlantic Canada pale in comparison to neighbouring Cape Cod and Martha’s Vineyard.
Christine Martysiewicz Eva Blay/Charlene McAdam
RE/MAX Ontario-Atlantic Canada Point Blank Communications
905-542-2400 416-781-3911
* Year-to-date (January to August 2005)
Source: Canadian Real Estate Association, Local Real Estate Boards
edited by Tim Harris, Broker, Tradewinds Realty Inc.
Chester, N.S. Canada
www.seanovascotia.com
email: Tim Harris
