, / 322 0

Fredericton Real Estate Market Sees Modest Growth in 2017

SHARE
Fredericton Real Estate Market Sees Modest Growth in 2017

The Fredericton real estate market was insulated from some of the late-year surges that affected other markets in Canada. Buyers in other markets were rushing to close deals before new mortgage rules came into effect in the new year. In Fredericton, however, slow and steady year-over-year growth was the theme as 2017 drew to a close.

Overall, there were 91 homes that sold in the city during the month of December. This is very close to the ten-year average for December and a 2.2% increase in sales from the previous year. This also represents the second highest sales figures for December over the last five years. Annual growth was also present in the Fredericton area: 2,122 homes were sold in 2017, which corresponds to a year-over-year growth of 4.8%.

Lower-Priced Properties in High Demand  

Demand in the Fredericton area was centered on lower-priced properties as 2017 drew to a close. Sales of homes priced between $150,000 and $250,000 grew 9.4% for the month, but sales of higher-priced properties declined. In the $250,000 to $350,000 price bracket there was a 27.8% decline in sales.

The average price in Fredericton climbed a fraction year-over-year for December. The new average price for homes in the area was $175,531, which was only 0.1% more than the average from the year before. Over the entire year, prices grew a little bit more. The 2017 price average of all sales in Fredericton was $181,248. The 0.3% price growth is part of a trend that has lasted six years now, with prices staying very consistent in the region.

Listings Surge in December

This is perhaps the only shift in the Fredericton market that connects to the changes in mortgage regulations that were approaching at the end of 2017. Listings surged to 132 units for the month. This 8.2% increase might indicate sellers hoping to capitalize on buyers trying to get a loan before the new regulations took effect, but this did not seem to spur extra purchases in Fredericton. Overall supply in the city was down at the end of the year, however, with only 865 properties left for sale at the end of the month. This was a year-over-year decline of 17.4%.

The Fredericton real estate market has been the model of consistency over the last several years.  The mortgage changes that took effect on January 1st, 2018 had serious implications in real estate markets across the country, but that Fredericton has been able to withstand this influence points to a market that is likely to maintain a steady course as we progress through 2018.

 

Leave A Reply

Your email address will not be published.