Monthly Newsletter March 23, 2022

Homes sales above average in February as supply hovers slightly above the lowest level in history

Homes sales above average in February as supply hovers slightly above the lowest level in history

The number of homes sold through the MLS ® System of the Real Estate Board of the Fredericton Area Inc. totaled 152 units in February 2022. This was a decrease of 16.5% from February 2021.

Home sales were 9.7% above the five-year average and 17.3% above the 10-year average for the month of February. On a year-to-date basis, home sales totaled 265 units over the first two months of the year declining 16.7% from the same period in 2021.

The MLS ® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS ® HPI composite

benchmark price was $262,300 in February 2022, a gain of 26.5% compared to February 2021.The benchmark price for single-family homes was $264,300, advanced 26.6% on a year-over-year basis in February. By comparison, the benchmark apartment price was $219,000, a notable gain of 25.6% from year-ago levels.

The average price of homes sold in February 2022 was a record $295,309, a significant gain of 31.1% from February 2021. The more comprehensive year-to-date average price was $273,387, rising 24.2% from the first two months of 2021.

The dollar value of all home sales in February 2022 was $44.9 million, up by 9.5% from the same month in 2021. This was a new record for the month of February. The number of new listings decreased by 17.2% from February 2021. There were 197 new residential listings in February 2022. This was the lowest number of new listings added in the month of February in more than 15 years.

New listings were 16.9% below the five-year average and 31.4% below the 10-year average for the month of February. Active residential listings numbered 209 units on the market at the end of February, a big decline of 48.6% from the end of February 2021. Active listings haven’t been this low in the month of February in more than two decades.

 

Fredericton housing market starts off 2022 with record low housing inventory

Fredericton continues to suffer from low supply of houses as the number of new listings dropped by 15.7% compared to January 2021. There were 134 new residential listings in January 2022.

This was the lowest number of new listings added in the month of January in 35 years, according to The Real Estate Board of the Fredericton Area.

New listings were 37.4% below the five-year average and 52.6% below the 10-year average for the month of January.

The number of homes sold totaled 108 units in January 2022. This was a sharp decrease of 20.6% from January 2021.

Home sales were 9.8% below the five-year average and 1.2% above the 10-year average for the month of January.

The benchmark price for single-family homes was $251,400, increasing by 23.6% on a year-over-year basis in January

The dollar value of all home sales in January 2022 was $25.8 million, a substantial decline of 10.8% from the same month in 2021.

Active residential listings numbered 194 units on the market at the end of January, down sharply by 47.7% from the end of January 2021. Active listings haven’t been this low in the month of January in more than two decades.

Active listings were 68.6% below the five-year average and 80.2% below the 10-year average for the month of January.

 

2021 home sales shatter previous year’s record by a wide margin

The COVID-19 pandemic did not slow down the housing market in 2021. In fact, home sales have shattered the previous year’s record by a wide margin.

In 2021, a total of 3,219 homes were sold, up by 20.5% from 2020.

For December alone, the number of homes sold totaled 164 units, a gain of 13.9% from December 2020. This was a new sales record for the month of December – which was 39.5% above the five-year average and 55.2% above the 10-year average for the month. 

The prices of homes have gone up too. The annual average price was $254,154, up by 22.9% from 2020. Just for the month of December, the average price of homes sold was $266,164, a notable gain of 29.6 from December 2020.

The year 2021 continued to be a seller’s market due to low house inventory. There were 194 active house listings at the end of December, which dropped 48.7% compared to the inventory at the end of December 2020. Active listings haven’t been this low in the month of December in more than two decades.

Houses have been selling fast, with months of inventory at 1.2 at the end of December 2021, down from the 2.6 months recorded at the end of December 2020 and below the long-run average of 9.7 months for December.

Judging by the market activities last year and towards the end of 2021,  I think that in 2022, we can still expect a hot market in the Fredericton area.