Stage is set for strong housing performance in 2019 as home-buying activity heats up throughout Atlantic Canada, says RE/MAX

Average price up in almost 75 per cent of markets surveyed during first quarter

MISSISSAUGA, ON, April 24, 2019 /CNW/ - Residential real estate markets throughout much of Atlantic Canada are poised for solid growth in 2019 as economic performance ramps up, unemployment rates decline, and first-time buyer incentives at both provincial and federal government levels take hold, according to a report released today by RE/MAX of Ontario-Atlantic Canada Region.

The RE/MAX Atlantic Canada Market Report examined residential real estate trends and developments across 15 markets for the first quarter of 2019 and compared them to the same period one year earlier. The markets surveyed were: St. John's (CMA), Deer Lake/Corner Brook, and Clarenville (including the surrounding areas) in Newfoundland and Labrador; Halifax-Dartmouth, the Annapolis Valley/Yarmouth, Kings County, Truro and Cape Breton in Nova Scotia; Charlottetown and Summerside in Prince Edward Island; and Saint John, Miramichi/Miramichi Rural, and Greater Moncton in New Brunswick. 

The report found strong momentum in the larger urban centres, as well as spillover in several smaller markets. Home sales are on par or up in just under half the markets surveyed (7/15), likely due to the current shortage of inventory, while housing values have climbed in almost three-quarters (11/15) of the Atlantic Canadian markets surveyed.

First Quarter Highlights 2019:

• First-time buyers were a driving force in almost 70 per cent of markets surveyed. (10/15)
• Low inventory levels were reported in 80 per cent of markets. (12/15)
• Home sales were strongest at starter price points ranging from $100,000 to $300,000.
• Buyers from other parts of the country were active in 60 per cent of Atlantic Canada housing markets. (9/15)
• Newfoundland and Labrador and New Brunswick are seeing an influx of people returning home after working in Alberta's oil sector.
• Luxury sales were up in Halifax-Dartmouth, Saint John and Kings County.

"Consumer confidence is on the upswing in Atlantic Canada and that is translating into stronger home-buying activity in residential real estate markets," says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada Region. "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."

Assistance programs introduced by provincial governments in Atlantic Canada in an effort to support home ownership are no doubt behind the surge in first-time homeowners. Targeting first-time buyers, these programs range from repayable loans of up to 40 per cent for an existing home (New Brunswick's Home Ownership Program) to government grants of $3,000 for qualifying individuals or families (Newfoundland and Labrador's Home Purchase Program). Also making home ownership more attractive, the federal government recently announced changes to its existing Home Buyer's Plan, allowing first-time buyers to withdraw $35,000 (up from $25,000) from their Registered Retirement Savings Plans to finance the purchase of a home. The federal budget also included a proposed Canada Mortgage and Housing Corp. (CMHC) equity loan designed to provide financing of up to 10 per cent on new homes and five per cent on existing homes.

Larger Atlantic centres were first to respond to the stimulus and demand for affordably priced homes continues to build. St. John's, Saint John, Greater Moncton and Halifax-Dartmouth all reported year-to-date sales for the first quarter of 2019 were on par or ahead of 2018 levels. The situation in Charlottetown was somewhat different, with exceptionally tight market conditions responsible for fewer sales in the first three months of the year. The ripple effect is spreading to smaller centres in PEI, placing pressure on both inventory and values.  

Supply issues were reported in 80 per cent of markets surveyed, with starter homes at affordable price points being most sought-after. This was especially so in areas that have a price ceiling associated with home-ownership assistance programs. An example would be in Nova Scotia, where the province will provide down-payment assistance for first-time buyers who qualify on homes valued at up to $150,000 outside of Halifax-Dartmouth and up to $280,000 within the Halifax Region Municipality. 

"These programs are breathing new life into smaller communities, and demand has outpaced supply, leaving realtors scrambling to find new listings for their clients," says Alexander. "In some cases, first-time buyers are vying against out-of-province buyers for product."

Population growth has also factored into the mix, with immigration and in-migration having an impact on housing across Atlantic Canada. According to Statistics Canada 2016 Census Profiles, 10 out of the 15 markets RE/MAX examined are experiencing an increase in local population. Nowhere is the uptick more evident than in Prince Edward Island, where inventory has fallen to its lowest level since 2003.

"The Atlantic Region traditionally has the highest rates of home ownership in the country and we don't expect that to change anytime soon," explains Alexander. "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."

Lastly, the landscape has changed for homebuyers in Atlantic Canada. Millennials now represent approximately one in five residents in major centres such as St. John's, Moncton, Saint John, Charlottetown, and Halifax-Dartmouth. Given that statistic, Alexander says "It is likely this trend will continue for the remainder of the year."

About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada

RE/MAX INTEGRA, founded in 1980, is a private company by Canadian entrepreneurs. With regional headquarters in Mississauga, Boston, Minneapolis, Indianapolis, Zug and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. The company was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer. The Ontario-Atlantic Canada region has surpassed 10,000 Associates. The US regions — New England and the Midwest (including Minnesota, Wisconsin and Indiana) – account for more than 6,400 Associates with over 2,600 and 3,800 Associates respectively. The European region leads with more than 16,000 Associates. For more information, visit remaxintegra.com and remax.ca

Forward looking statements
This report includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company's results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX and Motto Mortgage brands, (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent SEC filings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Residential Unit Sales and Average Price -- Atlantic Canada
First Quarter 2019 vs. First Quarter 2018
Market			Unit Sales		% +/-	Average Price		% +/-
			Q1 2019	Q1 2018		Q1 2019	Q1 2018
Newfoundland and Labrador
St. John's (CMA)			364	355	2.5	$281,264	$299,020	-6
Deer Lake/Corner Brook			42	66	-36	N/A	N/A
Clarenville and surrounding areas			21	23	-8.7	$155,400	$178,300	-12.9
Nova Scotia
Halifax-Dartmouth			1,117	1,118	-0.9	$318,977	$302,400	5.5
Annapolis Valley			260	282	-7.8	$174,286	$166,550	4.6
Yarmouth			47	54	-13	$138,706	$119,850	15.7
Kings County			91	107	-14.6	$215,684	$180,440	19.5
Truro			99	86	15.1	$164,595	$157,023	4.8
Cape Breton			112	131	-14.6	$122,617	$121,712	0.7
Prince Edward Island
Charlottetown			74	85	-13	$275,472	$261,075	5.5
Summerside			51	57	-10.5	$161,157	$133,821	20.4
New Brunswick
Saint John			354	318	11.3	$179,947	$177,622	1.3
Miramichi			41	37	10.8	$111,625	$124,266	-10.2
Miramichi Rural			34	16	112.5	$86,010	$79,356	8.4
Greater Moncton			615	573	7.3	$180,812	$176,714	2.3
Source: Local Real Estate Boards, Canadian Real Estate Association

SOURCE RE/MAX Ontario-Atlantic Canada

Danielle Scott, Apex PR: 416.934.2127, [email protected]; Lydia McNutt, RE/MAX INTEGRA, Ontario-Atlantic Canada Region, 905.301.5980, [email protected]; Eva Blay-Silverberg, Point Blank Communications, Office: 416.781.3911, Cell: 416.505.0627, [email protected]