Fredericton housing market continues to rebound as prices go up by 16.8%

Fredericton housing market continues to rebound as prices go up by 16.8%

Greater Fredericton Area home sales are rebounding from the COVID-19 pandemic and prices are on the rise, but completed transactions are still short of where they were last year, the area’s real estate board has reported recently.

The average price of homes sold in July 2020 was a record $218,767, rising 16.8% from July 2019.

The month of July 2020 also marked the second best July on record with 291 units sold which is 1% higher (three sales) than July 2019.

On a year-to-date basis, the average price of homes sold from January to July was $209,691 up 9% compared with the same period in 2019.

However, home sales for the first seven months totalled 1,471 units – down 6.8% from 2019.

There were 375 new residential listings in July 2020. This was little changed, down only 0.5% (two listings) on a year-over-year basis but remained well above the lows from April 2020 and marked a return to pre-COVID levels.

Inventories remain thin and is at its lowest level in over 20 years. Active residential listings numbered 733 units at the end of July. This was a large decline of 36.3% from the end of July 2019. Overall supply has generally trended lower since mid-2015

Homes have been selling faster too, with months of inventory numbered 2.5 at the end of July 2020, down from the 4 months recorded at the end of July 2019 and below the long-run average of 7.5 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.

The dollar value of all home sales in July 2020 was $63.7 million, rising 18% from the same month in 2019.

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 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.

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