The CREA release of the October residential real estate statistics report for the Fredericton area presents an interesting approach towards a declining Buyer’s Market. Residential property sales differed slightly from the 2015 analysis, hovering at 146 units for the month, however, it is the significant decrease in new inventory on the market that may lead to a declining Buyer’s market.
The overall supply of residential homes in the Fredericton area has been declining quite rapidly over the past year. New listings for the month of October were at an astonishing 24.3 percent decrease from a year earlier. By the end of the month, there were a total of 1,398 active residential listings on the Board’s MLS system, which was an 18.1 percent decline from the previous year.
The average residential sale price dropped in favour of a surplus of affordable housing in the Fredericton area. Through the month of October, homes priced between $150,000 - $250,000 saw a 14.8 percent rise in sale price when compared to statistics from last year. Homes priced in a higher range, from $250,000 - $350,000 were down 37.9 percent from last year. The average residential sale price for October 2016 fell 9.9 percent to $159, 325. This decline in sale price can be largely attributed to the substantial increase in sales of more affordably priced properties while there was a simultaneous decline in sales at the higher end of the market.
The time frame for the sale of a residential listing was drastically reduced by two months when compared to 2015 statistics!
So what does this mean?
Real estate statistics present a large array of numbers and factors that can often be overwhelming. The 2016 October statistics for the Fredericton area depict a declining Buyer’s Market. This means that Buyer’s have less to choose from and may end up competing for the property they wish to purchase. The Drisdelle Real Estate Team sees strong Buyer activity going into the month of December, which may strongly benefit potential Seller’s when considering the statistics from the month of October.
The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with the Real Estate Board of the Fredericton Area Inc. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor the Real Estate Board of the Fredericton Area Inc. assumes any responsibility or liability. Copyright © 2016 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.