Atlantic Canada has been experiencing slight quarter-over-quarter declines in sales and new listings, contrasting with more positive year-over-year growth, according to an Edge Realty report on Q1 2024. While price increases and population growth seem positive, rising numbers of unemployment and mortgage arrears present a more negative trend.
Sales
In the first quarter of 2024, sales in Atlantic Canada experienced a slight decrease of 2.6% compared to the previous quarter. In contrast, the year-over-year data showed a significant increase of 6.6% in April 2024 vs. April 2023.
Listings
New listings in the region saw a minor decrease of 1.7% quarter-over-quarter. However, on a year-over-year basis, there was a more significant rise of 7.8% for April 2024.
Active listings followed a similar pattern to these new listings numbers, with a slight quarter-over-quarter decline of 2.0% but an increase year-over-year, with active listings rising by 4.7%.
Provincial Price Breakdown
In April, the benchmark price for single-family homes in New Brunswick was $305,100, marking a 9.2% increase year-over-year. For townhouse/row units, the benchmark price was $281,500, up 12.7% from the previous year, while the benchmark apartment price was $281,100, reflecting a 12.1% increase year-over-year.
In Newfoundland and Labrador, the benchmark price for single-family homes was $293,700, showing a 5.8% increase compared to the same month last year. The benchmark price for townhouse/row units was $300,000, a significant 11.5% rise year-over-year, while the benchmark apartment price was $242,100, up 8.9% from a year earlier.
In Nova Scotia, the benchmark price for single-family homes was $410,000, an increase of 4.6% year-over-year. The benchmark price for townhouse/row units was $507,800, representing a 6.3% increase compared to last year, while the benchmark apartment price was $452,100, up 3.8% year-over-year.
In Prince Edward Island, the most recent data available from the Canadian Real Estate Association is from August 2023. The average price of homes sold in August 2023 was $390,876, a slight increase of 1.7% from August 2022.
Under Construction
Properties under construction showed a significant rise of 5.4% from the previous quarter and a substantial 32.6% increase year-over-year.
Months of Inventory
The months of inventory in the market, or how long it would take to sell all current listings at the current sales pace, with no new listings added, increased slightly from 4.4 in the previous quarter to 4.5 in Q1 2024.
Sales-to-New Listings Ratio
The sales-to-new listings ratio decreased slightly from 67.4% in Q4 2023 to 66.0% in Q1 2024, reflecting that new listings are outpacing sales, but only marginally.
Other Economic Indicators
Population
The population in Atlantic Canada grew by 0.3% quarter-over-quarter and by 2.6% year-over-year.
Unemployment Rate
The unemployment rate in the region rose from 7.1% in Q4 2023 to 7.6% in Q1 2024. This rise in unemployment is concerning, not only because it is increasing but also because it surpasses Canada’s overall unemployment rate of 6.1% in April 2024.
Mortgage Arrears
Mortgage arrears in Atlantic Canada showed a slight increase, from 0.26% in Q4 2023 to 0.27% in Q1 2024. Although this increase is marginal, it indicates financial strain among homeowners; this trend in mortgage arrears was experienced across Canada during Q1.