Home sales down 7.5% in August, as inventory drops
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.
Fredericton Real Estate Sees 6.8% Rise in July Sales Amidst Year-to-Date Decline
The Fredericton real estate arena witnessed a substantial surge in home sales during the month of July 2023, as reported by the Real Estate Board of the Fredericton Area.
The tally of units sold reached an impressive 219, signifying a noteworthy uptick of 6.8% when contrasted with the same period in the preceding year, July 2022. This surge, equivalent to 14 additional sales, reflects a positive trajectory in the market.
However, this growth should be analyzed in the context of the larger trends. The current sales figures, despite the July boost, fall short of the norm. Sales for the month were 16.4% below the five-year average and 11.6% below the 10-year average for July, indicating a market that is yet to fully regain its footing.
Zooming out to consider the year-to-date data reveals a mixed narrative. Over the initial seven months of 2023, a total of 1,373 homes were sold – a substantial drop of 15.6% in comparison to the corresponding period in the preceding year, 2022. This underscores a more extended trend of stagnation and potential market challenges that have shaped the year so far.
A crucial barometer of market trends, the MLS® Home Price Index (HPI), unveiled insights into the price dynamics. In July 2023, the overall MLS® HPI composite benchmark price stood at $289,600. This represents a moderated decline of 5.3% when contrasted with the same month in the previous year, 2022.
Further analysis into specific segments of the housing market showcased varied trends. The benchmark price for single-family homes observed a reduction of 5.4% on a year-over-year basis, reaching $290,300 in July. Conversely, benchmark apartment prices experienced a more modest contraction of 2.9%, settling at $273,600 compared to the prior year.
When considering average prices, the month of July 2023 saw homes sell at an average price of $317,110, indicating a minor 2% increase in comparison to the same month in 2022. This growth was mirrored in the year-to-date average price, which experienced a 0.6% rise to reach $324,351, based on data from the initial seven months of both 2023 and 2022.
Delving into the financial realm, the cumulative value of home sales for July 2023 reached an impressive $69.4 million. This marked a substantial 9% surge when compared to the parallel month in the previous year, 2022.
The real estate landscape also bore witness to a significant shift in new listings. Comparing July 2023 to July 2022, the number of new residential listings experienced a substantial 22.4% decrease, with only 274 listings recorded. This figure represents the lowest number of new listings for the month of July in over two decades. Additionally, these new listings fell 21.5% below the five-year average and a significant 25.5% below the 10-year average for the month, reinforcing the trend of reduced listing activity.
Active residential listings by the close of July 2023 numbered 502 units, showcasing a notable reduction of 16.5% from the same time in 2022. This statistic is especially striking considering that active listings haven’t demonstrated such low levels for the month of July in the past 25 years. These numbers also contrasted greatly with the historical averages, as they fell 29.2% below the five-year average and an astonishing 59.8% below the 10-year average for the month.
Shifting focus to inventory dynamics, the months of inventory – a crucial gauge of market health – stood at 2.3 by the end of July 2023. This represented a reduction from the 2.9 months recorded in July 2022 and a substantial dip beneath the long-term average of 5.4 months for this time of the year. This statistic signifies a potentially tightening market, where available homes could be absorbed more rapidly.
As Fredericton’s real estate sector navigates these fluctuations, industry observers will remain attentive to signals that offer
Home sales drop by 7.7% in June
Home sales in the Fredericton area experienced a moderate decline in June 2023, according to the Real Estate Board of the Fredericton Area Inc.
A total of 286 units were sold during the month, reflecting a 7.7% decrease compared to June 2022. This figure also fell 9.1% below the five-year average and 1.5% below the 10-year average for June.
Cumulatively, home sales for the first half of 2023 amounted to 1,156 units, indicating a substantial decline of 18.6% compared to the same period in 2022. However, despite the year-over-year decline, June’s home sales showed improvement compared to the previous month, marking the fifth consecutive month of increasing sales and suggesting a positive trend in the local market.
Michele Morris, President of the Real Estate Board of the Fredericton Area Inc., noted that the number of newly listed properties decreased in June, resulting in an overall inventory of fewer than 500 available homes. The sustained rise in sales, combined with limited new listings, has exacerbated the ongoing supply shortage. Notably, the number of active listings hit a record low for any June, further underscoring the scarcity of available properties.
Regarding pricing, the MLS® Home Price Index (HPI) revealed a 5.1% decline in the overall composite benchmark price, which stood at $288,400 in June 2023 compared to June 2022. The benchmark price for single-family homes was $289,300, reflecting a 5.2% decrease year-over-year, while the benchmark apartment price was $267,600, showing a slight reduction of 2.4% from the previous year.
The average price of homes sold in June 2023 was $336,481, representing an 8.7% increase compared to June 2022. However, the year-to-date average price remained relatively stable, with a minimal 0.4% rise to $325,633 compared to the first six months of 2022.
In terms of market value, the total dollar value of home sales in June 2023 reached $96.2 million, a marginal increase of 0.3% compared to the same month in 2022. This figure set a new record for the month of June.
New residential listings experienced a significant decline, plummeting by 26.7% from June 2022. A mere 332 new listings were added in June 2023, marking the lowest number for June in two decades. These figures stood 18.4% below the five-year average and 24.3% below the 10-year average for the month.
May 2023 Witnessed a Decline in Home Sales in Fredericton Area
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.
Sales drop as home supply remains low
The number of homes sold in the Fredericton Area Inc. totaled 208 units in April 2023. This was a decrease of 28% from April 2022, according to the Real Estate Board of the Fredericton Area.
On a year-to-date basis, home sales totaled 599 units over the first four months of the year. This was down by 26% from the same period in 2022.
The overall MLS® HPI composite benchmark price was $279,900 in April 2023, a moderate decrease of 4.2% compared to April 2022.
The more comprehensive year-to-date average price was $315,610, a small reduction of 2.4% from the first four months of 2022.
The number of new listings fell 24.4% from April 2022. There were 273 new residential listings in April 2023.
Sales down 30.5 per cent in March as supply remains low
It was a quiet end for the first quarter of 2023, as home sales dropped 30.5 per cent in March compared to a year ago, according to the Real Estate Board of the Fredericton Area.
On a year-to-date basis, home sales also fell 24.8 per cent compared to the same period in 2022. A total of 391 houses were sold.
The benchmark price for single-family homes was $272,800, a modest decline of 3.7 per cent on a year-over-year basis in March. By comparison, the benchmark apartment price (condominiums) was $261,300, an increase of 9.5 per cent from year-ago levels.
For the first three months however, the decline was minimal at 1.9 per cent in terms of average price, compared to the same period last year. The year-to-date average price was $306,470.
Housing supply also fell, with the number of newly listed properties down 18.4 per cent from March 2022.
With Fredericton still suffering from low inventory of houses, the month of March was still a seller’s market.
Home sales down 23.8%
The number of homes sold through the MLS ® System of the Real Estate Board of the Fredericton Area Inc. totaled 115 units in February 2023, decreasing 23.8% from February 2022.
Home sales were 17.9% below the five-year average and 10.2% below the 10-year average for the month of February.
On a year-to-date basis, home sales totaled 214 units over the first two months of the year, retreating 18.9% from the same period in 2022.
The overall MLS ® HPI composite benchmark price was $265,800 in February 2023, essentially unchanged, up just 0.9% compared to February 2022.
The benchmark price for single-family homes was $266,400, a slight gain of 0.6% on a year-over-year basis in February. By comparison, the benchmark apartment price rose 10.5% to $253,000, from year-ago levels.
The average price of homes sold in February 2023 was $311,369, advancing 5% from February 2022.
The more comprehensive year-to-date average price was $286,053, up by 4.4% from the first two months of 2022.
The number of new listings fell 10.6% from February 2022. There were 177 new residential listings in February 2023. This was the lowest number of new listings added in the month of February in three decades.
Active residential listings numbered 348 units on the market at the end of February, a substantial gain of 61.1% from the end of February 2022.
January 2023 stats are here!
The real estate market has been wild in the last three years. But has the market shifted? We are just in the second month of 2023, and so far, statistics show at the end of January that the market balance was still in the sellers’ market territory.
Home sales were down by 13.3% in January. The total number of houses sold was 98, lower than January 2022 sales of 113.
There were 161 houses that were listed for sale in January, up 20.1% compared to the 134 houses that went up for sale in January last year.
But house prices continue to rise. The benchmark price $265,200 in January 2023, which shows an increase of $4.8% from $253,100 in January 2022.
