A combination of surging economies and considerably declining unemployment rates will push residential real estate markets across Atlantic Canada towards robust performances for the rest of this year, according to the latest analysis by RE/MAX of Ontario-Atlantic Canada Region.
Much of this strength will come from the stronger momentum imparted by larger urban centres, “as well as spillover in several smaller markets.”
“The Atlantic Region traditionally has the highest rates of home ownership in the country and we don't expect that to change anytime soon,” RE/MAX of Ontario-Atlantic Canada Region executive VP and regional director Christopher Alexander said.
“Greater economic prosperity (the Maritimes are expected to lead the country in GDP growth in 2019), combined with interest rate stability and first-time buyer incentives are tipping the scales in favour of home ownership yet again,” he added. “Consumer confidence is on the upswing in Atlantic Canada and that is translating into stronger home-buying activity in residential real estate markets.”
In nearly 70% (10 out of 15) of the markets surveyed during Q1 2019, first-time buyers were found to be the crucial demographic impelling market activity.
“First-time buyers – many of whom are Millennials – are behind the push for housing, with many seeking to capitalize on the low interest rate environment along with provincial government assistance programs before values climb.”
Fully 60% (9 out of 15) of the region’s markets are seeing much activity among buyers from other parts of Canada. Newfoundland/Labrador and New Brunswick are also benefiting from returnees, after having worked in Alberta’s oil and gas industry.
This has made itself clearly apparent in supply, with low inventory levels observed in 80% (12 out of 15) markets. The most active segment was the starter home price point ranging from $100,000 to $300,000.