A recent TD Economics report highlights a cooling housing market across Canada, and New Brunswick is feeling the shift. If you plan to buy or sell property in the Saint John area, you need to understand these changing dynamics.

Migration Trends Shift the Market

New Brunswick experienced a housing boom driven by people moving from other provinces. That trend is reversing. The TD Economics report shows net interprovincial migration into New Brunswick fell sharply in 2024 and turned negative in 2025. Fewer people moving to the province means less demand for housing.

Source: TD Economics

Price Growth Forecasts

This drop in migration directly impacts home prices. In 2025, New Brunswick saw average home prices increase by 5.6 percent. For 2026, TD Economics forecasts that growth will ease to just 2.9 percent. This makes New Brunswick the slowest growing market in Atlantic Canada for the upcoming year. Newfoundland and Labrador leads the region with a projected 5.5 percent increase, followed by Nova Scotia at 4.7 percent and Prince Edward Island at 3.9 percent.

Source: TD Economics

Interest Rates Remain Neutral

You need to know how mortgage rates factor into this outlook. The report notes that interest rates act as a neutral factor in 2026. The Bank of Canada is expected to hold its policy rate steady, meaning you should not expect major movements in bond yields or fixed mortgage rates.

The National Perspective

Nationally, TD Economics issued steep downgrades to its 2026 home resale and price growth forecasts. Weaker than expected performances in late 2025 and early 2026 drove this change. A subdued economy and ongoing cost of living pressures continue to constrain the housing market across the country. Ontario and British Columbia saw the sharpest downgrades following significant first quarter declines.

Frequently Asked Questions

Why is home price growth slowing in New Brunswick?

Fewer people are moving to the province. Interprovincial migration turned negative in 2025, which reduces overall housing demand.

How much will New Brunswick home prices increase in 2026?

TD Economics forecasts a 2.9 percent increase in average home prices for New Brunswick in 2026.

Will mortgage rates drop in 2026?

The Bank of Canada is expected to hold rates steady. Interest rates remain a neutral factor for the housing market throughout the year.