Home supply hits a record low in more than 25 years

The number of homes sold in Fredericton Area Inc. totaled 132 units in January 2021. This edged up 2.3% (three sales) from January 2020.

While there was a slight increase in sales year over year, the market continues to suffer from low supply of homes. Active residential listings numbered 369 units at the end of January, declining 47.6% from the end of January last year. Active listings haven’t been this low in the month of January in more than two decades.

As well, there were 158 new residential listings in January – a large decline of 33.6% from the end of January 2020. This was the lowest number of new listings added in the month of January in more than 25 years.

The average price of homes sold in January 2021 was $215,723, rising 20.9% from January 2020.

The value of all home sales in January 2021 was $28.5 million, a gain of 23.7% from the same month last year. This was a new record for the month.

Homes have been selling fast, with months of inventory numbered at 2.8 at the end of January, down from the 5.5 months recorded at the end of January 2020 and below the long-run average of 11.2 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

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