Fredericton Housing Market Recovers in May

Fredericton housing market recovers in May; average price sets record high but home inventory at its lowest level since the mid-1990s

The average price of homes sold in May 2020 was a record $216,347, up 3.6% from May 2019. On a year-to-date basis, the average price was $202,930 up 4.3% from the first five months of last year.

Residential sales recorded by the Real Estate Board of the Fredericton Area totaled 207 homes in May 2020. While this was still a large 40.9% decline from May 2019, it did represent an improvement over April.

On a year-to-date basis, home sales totalled 796 units over the first five months of the year, down 24% from 2019.

There were 335 new residential listings in May 2020. This was down 37.7% on a year-over-year basis; although that was significantly better than the decline of almost 60% recorded in April.

And it is interesting to note as well that with low inventory and plenty of buyers, multiple offers on homes have been frequent occurrences.

Overall supply had generally trended lower since mid-2015 but has fallen further and faster during the COVID-19 crisis. Active residential listings numbered only 804 units at the end of May, dropping 30.6%from the end of May 2019. It was the lowest level for this time of the year since the mid-1990s.

The dollar value of all home sales in May 2020 was $44.8 million, falling 38.7% from the same month in 2019.

Fredericton homes sales up in March amid COVID-19

Some of my clients have been asking me questions whether prices of houses have gone down in connection with COVID-19.

I will give you an answer based on statistics. The state of emergency was declared in New Brunswick on March 19, so analysis of effects is limited.

It is interesting to note, however, that for March and for the first three months of 2020, home sales and the average prices of homes have gone up compared to the same time, the year prior.

For the month of March, home sales totalled 180 units, according to the Real Estate Board of the Fredericton Area. This was up 2.3% (four sales) compared with March 2019 and marked a decade-high for the month.

On a year-to-date basis, home sales totalled 445 units over the first three months of the year, up 3% (13 sales) from 2019.

The average price of homes sold in March 2020 was a record of $209,883, rising 16.5% from March 2019. The more comprehensive year-to-date average price was $199,579, up 13.6% from the first three months of 2019.

The Fredericton area market remains supply starved. There were 295 new residential listings in March 2020, down 16% on a year-over-year basis.

Overall supply has generally trended lower since mid-2015 and now stands at the lowest level in nearly 15 years. Active residential listings numbered 776 units at the end of March, down 21.1% from the end of March in 2019.

Homes also sold faster. The months of inventory numbered 4.3 at the end of March 2020, down from the 5.6 months recorded at the end of March 2019 and below the long-run average of 9.2 months for the end of the year. The number of months of inventory is the number of months it would take to sell houses.

The value of all home sales in March 2020 was $37.8 million, rising 19.2% from the same month in 2019. This was also a new record for the month of March.

The full month of April will give us a better picture of market activities amid COVID-19, but so far homes have been selling at good prices this month.

In the meantime, you might have immediate concerns about the real estate market. For example, you might be wondering if you should put off moving. Or, you might need to move but are worried about all this uncertainty. If so, give me a call.

Take care and know that I’m thinking of you and wish you well.

Fredericton home supply hits 18-year low

Fredericton home inventory are at an 18-year low to start the year, down more than 17 per cent from the start of 2019. This could well be starting to limit how many homes can sell in a month.

The shortage of houses for sale have been causing delays in the plans of home buyers who have started searching for houses as early as January.

Overall supply has trended sharply lower since mid-2015 and now stands at the lowest level since 2002. Active residential listings numbered 705 units at the end of January, down 17.4 per cent from the end of January in 2019.

There were 239 new residential listings in January 2020. This was down 4.8 per cent (12 listings) on a year-over-year basis.

Residential sales recorded by the Real Estate Board of the Fredericton Area totaled 129 homes in January 2020. While this was down 7.2 per cent (10 sales) from the record month of January in 2019, it was still well above every other month of January in history except 2007.

The average price of homes sold in January 2020 was $179,695, up 4.6 per cent from January 2019.

Fredericton Real Estate Year 2019

The year 2019 was a very busy year in the Fredericton area real estate market. The past year had the second highest sales on record.

Home sales totalled 2,461 units in 2019. This was an increase of 12.7 per cent from 2018 and was the second highest annual level on record after 2007. Fredericton home sales missed the 2007 record by just 16 sales.

The annual average price for 2019 was $187,808, up 2.7 per cent from 2018.

There is a low supply of houses for sale, causing delay in the purchasing plans of buyers.

There were 100 new residential listings in December 2019, a decrease of 18 per cent on a year-over-year basis and the lowest level for this month in more than 15 years.

Overall supply of houses has generally trended lower since mid-2015 and now stands at the lowest level since 2002. Active residential listings numbered 656 units at the end of December, down 23.2 per cent from the end of December in 2018.

Generally, houses have been selling faster. Months of inventory numbered 6.8 at the end of December 2019, down from the 10.3 months recorded at the end of December 2018 and below the 10-year average of 11.5 months for the end of the 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.

Home sales up by 13.8%

The first 10 months of 2019 have been very busy with home sales totalling 2,208 – an increase of 13.8 per cent from 2018 and was the second highest level of sales for this time of the year on record.

Records from the Real Estate Board of the Fredericton Area also show that for the month of October, sales totalled 215 homes, up 13.8 per cent from October 2018 and was a new sales record for the month of October.

With only two months left to go this year, 2019 is trailing the record year of 2007 by just 16 transactions.

The year-to-date average price was $189,488, up 2.6 per cent from the first 10 months of 2018.

Overall supply of houses has generally trended lower since mid-2015 and now stands at the lowest level in 15 years. Active residential listings numbered 954 at the end of October, a decrease of 18.7 per cent from the end of October 2018.

On the average, homes have been selling faster this year so far. Months of inventory numbered just 4.4 at the end of October 2019, down from the 6.2 months recorded at the end of October 2018 and less than half the 10-year average of 9.2 months for the end of the 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.

2019 in the running to be a record year; sales up 13.3%

Fredericton area home sales for the first nine months of 2019 totalled 1,985 units, up 13.3 per cent from 2018. With three months left to go this year, 2019 remains in the running to be a record year, trailing 2007 by just 2.2 per cent.

Year-to-date average price was $189,630, edging up 1.1 per cent from the first nine months of 2018.

The Real Estate Board of the Fredericton Area said that for September, 183 homes were sold in the Fredericton area. This was an increase of 17.3 per cent from September 2018 and was a new record for activity in that month.

The average price of homes sold in September 2019 was $168,995, down 6.3 per cent from September 2018.

There were 306 new residential listings in September 2019, up 4.8 per cent (14 listings) on a year-over-year basis.

By contrast, overall supply has generally trended lower since mid-2015 and now stands at the lowest level in 15 years. Active residential listings numbered 1,125 units at the end of September, a decrease of 14.3 per cent from the end of September in 2018.

Homes have also been selling faster in the first nine months of the year compared to the same period last year. Months of inventory numbered 6.1 at the end of September 2019, down from the 8.4 months recorded at the end of September 2018 and below the 10-year average of 9.6 months for the end of the year.

Below is a snapshot of what happened in the Fredericton market in the first seven months of the year.

Fredericton home sales post second-best July on record

Residential sales recorded by the Real Estate Board of the Fredericton Area Inc. totaled 276 units in July 2019. While this was a decrease of 19.3% from the monthly record set in July 2018, it was still the second-best month of July ever in the region.

On a year-to-date basis, home sales totaled 1,565 units over the first seven months of the year, an increase of 18.7% from 2018. 2019 is currently trailing only 2007, and not by much, putting it in the running to be a record year for sales activity.

The average price of homes sold in July 2019 was $186,424, down 5.6% from July 2018.

The more comprehensive year-to-date average price was $192,222, up 1.9% from the first seven months of 2018.

September is typically a busy month for homeowners.

Kids go back to school. Work increases at many businesses as the fourth quarter looms. Major home renovation projects are in the midst of wrapping up, and smaller projects may be about to start!

If there’s anything I can do to help with questions, contractor referrals, advice, or information related to real estate, give me a call.

In fact, that’s the reason I stay in touch with you on a regular basis. I want to continually remind you that my services don’t end once I’ve helped you buy or sell a home. In the months and years in between transactions, I’m dedicated to helping you enjoy your home and understand your real estate options.

So, if you need help or advice, get in touch with me. That’s why I’m here!

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