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.