In a recent report, the Real Estate Board of the Fredericton Area Inc. has revealed a snapshot of the housing market's performance for August 2023, shedding light on the notable trends and challenges facing the region.
During August 2023, a total of 222 homes changed hands, as recorded by the MLS® System. This figure reflects a 7.5% decline compared to the same period in the previous year, indicating a somewhat subdued market activity.
Zooming out to assess the year-to-date performance, the report reveals that 1,596 homes were sold in the first eight months of 2023. However, this number marks a 14.5% drop from the equivalent period in 2022, underlining a substantial slowdown in the housing market over the course of the year.
A key highlight in the report is the MLS® Home Price Index (HPI), lauded for its precision in capturing price trends. In August 2023, the overall MLS® HPI composite benchmark price stood at $290,700, reflecting a 2.1% decrease compared to the same month in the prior year. Notably, the benchmark price for single-family homes registered at $291,200, showing a modest decline of 2.3% year-over-year, while the benchmark price for apartments exhibited a slight increase of 2.2%, reaching $277,900.
Intriguingly, the average price of homes sold in August 2023 surged to $317,155, marking a substantial gain of 16.3% when compared to August 2022. The year-to-date average price also demonstrated a more modest uptick, reaching $323,653, a 2.4% increase from the first eight months of 2022.
Furthermore, the total dollar value of home sales in August 2023 amounted to an impressive $70.4 million. This figure represented a significant increase of 7.6% when juxtaposed with the corresponding month in 2022, setting a new record for August in terms of dollar value.
Shifting the focus to the supply side of the market, the report unveiled a substantial reduction of 11.1% in new residential listings during August 2023 when compared to the same period in the previous year. A mere 281 new listings made their way to the market, marking the lowest number of new listings for an August in two decades. Moreover, new listings for August were 12.7% below the five-year average and a noteworthy 18.1% below the 10-year average.
Conversely, the number of active residential listings, or available homes on the market, reached a total of 496 units by the end of August 2023. This figure signaled a significant decline of 17.9% from the same period in 2022 and marked the lowest level of active listings for August in 25 years. These figures reveal that active listings were not only 28.8% below the five-year average but also a substantial 58.6% below the 10-year average for the month.
In summary, the statistics unveiled by the Real Estate Board of the Fredericton Area Inc. paint a picture of the Fredericton housing market in August 2023 characterized by declining sales, limited inventory, and price trends in flux. These figures underscore the unique challenges and opportunities that prospective buyers and sellers face in this dynamic market.