The Real Estate Board of the Fredericton Area Inc. has reported a decline in the number of homes sold through its MLS ® System in May 2023. A total of 268 units were sold, reflecting an 11.6% decrease compared to May 2022.
The figures for home sales in May were also below the average of the past five years, registering a 10.1% shortfall, and 3.7% below the 10-year average for the same month.
For the year-to-date period, the total number of home sales stood at 870 units, marking a significant 21.8% decline from the corresponding period in 2022.
Commenting on the market conditions, Michele Morris, President of the Real Estate Board of the Fredericton Area Inc., stated, “MLS ® home sales in May were slightly below average, and the number of newly listed properties fell short of our expectations for this time of year. As new listings outpaced sales, the overall inventory surpassed 500 homes for the first time since late summer 2022. Although the average price and MLS ® HPI Benchmark price experienced marginal increases in May, the market balance favored sellers, albeit not as strongly as in recent months. Our local market has demonstrated steady growth since the beginning of 2023, and we anticipate this trend will continue throughout the summer months.”
The MLS ® Home Price Index (HPI) provides a more accurate representation of price trends compared to average or median price measures. In May 2023, the overall MLS ® HPI composite benchmark price was reported as $281,600, showing a 4.8% decrease compared to May 2022.
Breaking it down by property type, the benchmark price for single-family homes stood at $282,100, reflecting a moderate 5% decrease year-over-year in May. On the other hand, the benchmark apartment price saw a modest gain of 1.9% from the previous year, reaching $269,100.
The average price of homes sold in May 2023 was $334,799, indicating a 2.2% decline from May 2022. Looking at the broader picture, the year-to-date average price amounted to $321,740, representing a 2% decrease from the first five months of 2022.
In terms of the total value of home sales, May 2023 witnessed transactions amounting to $89.7 million, marking a 13.5% decrease compared to the same month in 2022.
New listings in May experienced a slight increase of 0.3% (equivalent to one listing) compared to May 2022, with a total of 388 new residential listings recorded.
According to the statistical report released by the Real Estate Board of the Fredericton Area Inc., new listings in May were 6.2% below the five-year average and 18.9% below the 10-year average for the same month.
At the end of May 2023, there were 522 active residential listings on the market, indicating a significant 31.5% increase from the end of May 2022. However, these active listings were 23.3% below the five-year average and 58.6% below the 10-year average for the month of May.