Residential sales activity in the Fredericton area hit a four-year high in early 2015, according to statistics released by the Canadian Real Estate Association (CREA). While first quarter numbers revealed that sales were down 2.5 per cent, compared to the first quarter of 2014, March 2015 sales reached 150 units, translating to a 13.6 per cent increase over the same month in the previous year. The number of residential sales was the highest since March 2011, when units sold reached 160.
CREA found that the active supply of residential listings in Fredericton remained historically high, with 1,670 listings at the end of March, up 6.8 per cent from the previous year. Looking at the length of time it would take to sell the active listings at the current rate of sales activity, CREA noted that in 2015 it would take an estimated 11.1 months, down slightly from 11.8 months at the same time in 2014.
A second survey completed by Royal LePage revealed that average prices in the condominium market in Fredericton rose by 2 per cent over the previous year to reach $154,000. Sale prices for a standard two-storey home and a detached bungalow dropped by 2.3 per cent and 0.5 per cent respectively.
The brutal winter weather that the area has experienced over the past few years has been suggested as one of the reasons homeowners are gravitating towards condo living, where outdoor maintenance is minimized. As Fredericton has a healthy supply of condo listings, it is unlikely that this change in buyer interest will have an effect on condo prices, according to Lincoln Thomson, a Royal LePage broker.
The value of all residential sales activity increased by 14 per cent over the previous year to reach $26.3 million in March 2015. The average price for a residential listing in Fredericton, according to CREA, was $175,632 – up less than half a per cent from 2014.
Photos by: MetCap Living