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Are you planning to buy a home in New Brunswick sometime soon? If so, you’ll want to get a sense of what the market is like in various centres across the province, as well as what the average home price is province-wide. 

Considering the magnitude of such a purchase, buying a home should come with a lot of homework and due diligence. 

Let’s take a look at the home prices in New Brunswick to help you make a more informed home-buying decision.

What Is The Average House Price In New Brunswick?

The average price for a home in New Brunswick is currently $287,900. That’s a 7.1% increase from last year. 

While house prices may have increased substantially in New Brunswick, house prices are still relatively low compared to the rest of Canada. It has the lowest average house price in Canada. 

How Does The Average House Price In New Brunswick Compare To The Rest Of Canada?

Home Prices 2024 Year-Over-Year % Change
Canada$659,3957.6%
New Brunswick*$287,9007.1%
Manitoba$351,30510%
Ontario$821,6240.6%
Prince Edward Island$341,2001.0%
Newfoundland and Labrador*$288,0004.3%
British Columbia$960,43310.8%
Alberta$471,88712.4%
Saskatchewan*$319,6001.0%
Quebec$492,7359.4%
Nova Scotia*$389,0002.1%
Source: CREA Price Map (January 2024)
*based on MLS HPI benchmark prices

What Factors Can Affect New Brunswick House Prices?

No matter which province or city you plan to buy in, the same factors will impact the price paid for a home. At the end of the day, a home is only worth what a qualified buyer is willing to offer. But what buyers may be willing to pay will be influenced by a variety of factors, including the following:

The Current Market

Real estate markets go through cycles. Sometimes they may be classified as “seller’s markets” that are characterized by a plethora of buyers vying for a small inventory of available homes. And other times, the market may be deemed a “buyer’s market,” in which case there are more listings to choose from compared to the smaller pool of buyers on the search for a home.

The temperature of the local market will have an impact on how expensive or affordable homes on the market will be. 

The Economy

A healthy economy is characterized by a few things, including a low unemployment rate and higher wages. When people are working and making decent incomes, they have more money to spend on assets like a home. This can fuel the demand for housing, which, in turn, can drive home prices up. 

But when the job market is weak, the demand for housing decreases, which can put downward pressure on home prices.

Immigration and Interprovincial Migration

Immigration, foreign property investments and interprovincial migration can also affect average house prices. When more individuals and families relocate to a province, it naturally triggers an uptick in the demand for housing options, whether it’s for renting or purchasing properties.

This influx of people seeking residences not only stimulates the housing market but also affects various related sectors, such as construction, real estate, and local economies. 

How Do House Features Affect House Prices?

Various aspects of a house can affect the price, including: 

Location

“Location! Location! Location!” is a common mantra in the world of real estate. The same home may be worth much more when it’s located in a desirable area than if it was located in a less desirable neighbourhood. Where the house is situated matters when it comes to pricing a home and plays a direct role in the value of the real estate.

Age And Condition Of The Property

In general, a newer home in good condition can demand a higher price than an older home in rough shape

Size Of The Home

While there are some exceptions to this rule, a home with more square footage will generally be more expensive than a much smaller home. 

Features

Certain traits are considered more desirable compared to others, such as granite counters and hardwood flooring. As such, they can contribute to a higher listing price.

How Much Should You Spend On A House In New Brunswick?

Before you buy a home, it’s very important to assess your current financial situation and establish a budget to stick with. Even before you start looking at listings, you should have a clear idea of what you can afford to spend on a home. This will better prepare you for the house hunt while streamlining your efforts.

Similarly, you should ensure your debt service ratio meets the standard thresholds as many lenders use it when approving mortgage applications.

Determine Your Gross Debt Service (GDS)

Your GDS is a measure of the debt you carry for housing relative to your income. Lenders usually don’t want to see a GDS any higher than 32% to 39%, as a higher number can increase your risk of defaulting on your loan. If your GDS is more than 39%, you may have a harder time getting approved for a mortgage.

Determine Your Total Debt Service (TDS)

Your TDS is a measure of all your debt, which also includes your housing debt, relative to your income. Lenders typically prefer to see TDS ratios of no more than 44%. Any higher than this figure puts you at a greater risk of failing to make your mortgage payments because of debt overload.

Final Thoughts

The prices of homes in New Brunswick are relatively affordable compared to other provinces, as well as the nationwide average. Regardless, it would be in your best interests to assess your financial situation and take the time needed to save up for a sizable down payment before buying a home in New Brunswick.

New Brunswick House Price FAQs

Why are your GDS and TDS ratios important?

Your GDS and TDS ratios will give your lender a better idea of your ability to manage mortgage payments on top of all your other debts relative to how much you earn. It will also help them determine what type of interest rate to offer you if you are approved.

What are some other costs associated with home ownership?

Owning a home comes with many more financial responsibilities compared to renting. In addition to your mortgage payments, you’ll also be obligated to cover the following expenses:
  • Property taxes
  • Home insurance
  • Utilities
  • Maintenance and repairs
  • Condo fees (if applicable)

How do mortgage interest rates affect house prices in New Brunswick?

Buyers may be in a better financial position to take out a mortgage to buy a home when rates are low. When mortgage rates are low, the demand for real estate increases. And when demand is strong, housing prices can go up.  But when mortgage interest rates are very high, it can be much more difficult to obtain a mortgage. In this case, the borrowing and buying power of Canadians shrinks, thereby reducing demand for housing and keeping home prices lower.
Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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