According to experts, 2022 is predicted to be a tough year for the housing market. Inflation aimed at curbing spending did exactly that, causing sales to fall 23 percent below the five-year average. Moncton, NB, alone.
In St. John’s, Realtor Judy Mitchell is seeing fewer phone calls during 2022. He said that when interest rates started rising, calls for out-of-town buyers slowed down, but he is hopeful for local buyers.
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She noted that when interest rates rose, it left some to move to other markets, opening up housing in the area. With that open housing market, it could open doors for first time home buyers.
“That’s a lot of the customers we’re seeing now, they’re 25-32,” Mitchell said.
“Those people have waited, saved and are ready to buy now.”
According to the Realtors du Grand Moncton of Greater Moncton, they have seen many of those younger buyers move from the rental market to the housing market.
Smaller, more affordable homes have become a prime target for those buyers, reducing the supply of those units.
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“People were moving out of rentals (in 2022) and into smaller, entry-level homes,” said board president Mike Power.
“That market was the fastest growing in price and level of activity.”
He said last year he saw many renters increase their prices, with a flood of new renters flooding the inventory of the units. When rent prices go up, so does the number of people looking for a home in the area.
Power noted that 2023 could be a year when those new, first-time buyers move into their homes and stay there for extended periods, thus re-opening that segment of the market.
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