This June saw a return to activity at levels near the long-term averages in the Fredericton real estate market. This meant that sales dropped slightly compared to their ten-year high from 2017. Sales activity was down in the Fredericton region not just for the month of June, but also when looking at the year-to-date figures.
The total number of sales for the month of June was 286. At a 9.5% year-over-year-decline, this appears to be a steep drop off for activity in the region. However, the last two years both saw sales activity well above the average for this time of the year in Fredericton. With this year’s decline, June’s sales figures are very much in line with the long-term averages for the month. Year-to-date sales also declined by 5.8% according to stats recorded in the first half of the year.
Listings and Supply Heading Downward
Overall, the trends in both new listings and overall supply seem to further support the theme of an overall slowdown in the market for the area. New listings dropped 8% compared to June 2017. This year, only 378 new homes were put on the market during the month.
These new listings, when sales for the month are taken into account, combined with existing inventory leave a total of 1,749 homes for sale in the Fredericton area. Once again, this is a year-over-year decline. Overall supply for the month was 5.9% lower than it was last year. It has been 13 years since supply has been this low in the month of June.
Prices Climbing Despite Dropping Sales Activity
Real estate prices typically peak in summer in Fredericton. The summer of 2018 is proving no exception, with prices rising sharply through the summer months, even when compared to the same time last year. In June, the average sale price of a home in the city was $203,109. This was an 11.8% year-over-year increase. Even when calculating a year-to-date average that includes the colder months, the average home price in the city climbed 4.3% compared to the same period last year. Throughout the first six months of 2018, the average sale price was $179,830.
Overall, trends in Fredericton seem to be staying fairly stable. While sales are declining, the drop-off was not precipitous and simply seems to be returning sales activity to levels that are consistent with long-range norms. Price increases can be attributed to factors including inflation and slightly tightening supply, and will likely be sustained in the near future.
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