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Fredericton Real Estate Market Cools Over Summer

Fredericton Real Estate Market Cools Over Summer
3 min. read

With a 14.2% decline in overall sales, the Fredericton real estate market experienced a noticeable cool-down this summer when compared to 2015. The 181 homes that were sold this July is also less than the five year average for the month. This seems to be primarily indicative of a summertime slowdown rather than a larger trend however, as can be seen when you look at home sales throughout the year to date in the region. Since the start of the year, 1,285 homes have been sold in the area, which is 7% more than were sold in 2015. That figure also beats the sales figures seen in the first 7 months of the three years prior to 2015.


Photo Credit: Knoxfordguy via Wikipedia

Average Sale Prices Sneak Upward

The average price of a home in Fredericton increased ever so slightly in July of 2016 compared to the previous year. This July, the average price of a home sold in the city was $181,833, which was only 1.9% higher than the average price in July of 2015. When looking at the first seven months of the year, prices are also seen to be increasing, but by a slightly larger margin. From January through to the end of July, the average price of a home in Fredericton was $185,930, which was 2.6% more than the average price of a home over the same period from the previous year.

One trend that relates the average price of homes sold and the overall sales figures in the city is how much sales have dropped in the more affordably priced homes in the area. In the first seven months of 2015, sales in the $150,000 to $250,000 price bracket dropped by 19.6% compared to 2015. This sharp drop in sales of the more affordably priced properties in the city is indicative of rising prices, but also of the limited availability of listings currently seen in the area.


Sharpest Statistical Shift Seen in Listings

When looking at market trends in a city, there are many shifts in the figures that are significant, but the larger the shift, the more likely that particular element is exerting an influence over the entire market. In Fredericton this July, that means we need to pay attention to the how the new listings compare to listings in the previous year. This July, there were only 349 new properties listed for sale in the area, a 26.5% drop from July of last year. This is not an isolated incident either, as the total supply is also trending downward, with 18.4% fewer total homes left available for sale on the market at the end of July 2016 compared to 2015, despite overall downwards trending sales figures.

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