The Best Mortgage Rates in Moncton

Moncton Key Stats

• Moncton population (2011): 69,074
• Dwelling units (2011): 33,390
• Unemployment Rate (2012): 6.5
• Employment Level (2012): 70,500
• Average Weekly Earnings (2012): 743.75

Source: Stats Canada, CMHC

Moncton Mortgage Rates to Moderate in 2013

Mortgage rates are expected to remain at historical lows for the first portion of 2012 before moderating later in the year. The CMHC forecasts that the one-year posted mortgage rate will be within the 3.1 to 3.6 range, with five-year posted rates in the range of 5.0 to 5.4 per cent. Rates are expected to rise in 2013 to 3.5 to 4.1 per cent for one-year, and 5.1 to 5.6 per cent for five-year mortgage rates.

Source: CMHC

Moncton 2012 Housing Market Outlook

The Moncton housing market is expected to moderate in 2012 and 2013 due to weakening economic factors, namely stunted job growth and creation in New Brunswick's main industries which include forestry, manufacturing, transportation and the energy sector. Historically low lumber prices, as well as a strong Canadian dollar, will continue to have a negative impact on the economy. This is expected to be reflected by housing markets, with residential construction to decline in 2012 and 2013.

The market is also going through a period of absorption, as home buyers purchase apartment units built in 2011. Semi detached starts are also expected to decline, an ongoing trend from 2009, when levels peaked at 36 per cent of all starts. However, excess is slowly dissipating. Multiple starts are also expected to decline in 2012 due to demand, down to 700 units in 2012, and 665 in 2013.

Semi detached starts have also been in a downward trend since 2003, as the widening gap between new home costs and resale prices has offered competitive options to prospective home buyers. Levels are expected to decline to 350 units in 2012, and further still to 200 units in 2013.

Source: CMHC Housing Market Outlook

Moncton Housing Market & Mortgage Rate Forecast

Moncton Housing and Mortgage Overview

According to CMHC, a positive net migration was seen in Moncton resulting in a stable 2009. A low level of activity in the new home market and resale market have contributed to a reduced housing demand. A flat forecast is also expected for the job market in Moncton through the 2010 period.

Moncton Mortgage Rates Will Slowly Increase in 2010

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Moncton 2010 Housing Outlook

In the three quarters of 2009, the CMHC reported that Moncton experienced the highest volume of sales in the province. However, this still resulted in a 15% decrease from 2008. With new listings declining, the price growth has increased. In 2009, 2,225 units were sold. A modest777k increase is expected in 2010 with 2,300 units resulting in a 3 to 5% increase in prices. The average MLS price for 2010 is expected to be $172,000.

CMHC Moncton housing market & Moncton mortgage rate forecast