Fredericton’s housing market kicked off with a bang in the first quarter, with home sales hitting a nine-year high in March 2019, up 33.6 per cent from 2018. This marks the second-best start for sales in any year on record in the region.
Overall, Atlantic Canada is poised for strong housing market performance in 2019 as economic performance ramps up, unemployment rates decline, and first-time buyer incentives at both provincial and federal government levels take hold, according to the RE/MAX 2019 Atlantic Canada Housing Market Report. The report found strong momentum in the larger urban centres, as well as spillover into several smaller markets. Home sales are on par or up in just under half the markets surveyed (8/16), likely due to the current shortage of inventory, while housing values have climbed in almost three-quarters (12/16) of the Atlantic Canadian markets surveyed.
Housing Activity in Fredericton
Average home prices are up by 0.5 per cent, sitting at $175,824 in the first quarter of 2019. In lockstep with record-high home sales, housing supply has been trending down since mid-2015 and currently stands at the lowest level seen in 15 years. There were just 1,008 active residential listings at the end of March 2019, down 20.4 per cent year-over-year. All home price points are affected, but particularly those in the $150,000-$250,000 range. It’s expected that home sales and prices will continue their upward trajectory toward the end of 2019, and up over 2018 sales and prices. This is attributed to the region’s seller’s market conditions and low inventory.
Young, first time home buyers and move-up buyers continue to drive the market in the $250,000-$350,000 price range. This can be attributed to continual growth in the tech sector in the Fredericton Area, drawing in younger buyers and investors across the downtown core, the Hill, Fulton Heights, Hanwell, New Maryland and Brookside West. Being the capital city of New Brunswick and with its proximity to Oromocto, which has one of Canada’s largest Military Training facilities, the region is a stable economic hub. Popular properties in greatest demand include a mix of single-family detached homes and multi-unit dwellings.
With all segments of the market operating in tandem, the outlook is bright for Fredericton’s housing market in 2019.
Atlantic Canada Housing Market Highlights
- First-time buyers were a driving force in almost 70 per cent of markets surveyed. (10/15)
- Low inventory levels were reported in 80 per cent of markets. (12/15)
- Home sales were strongest at starter price points ranging from $100,000 to $300,000.
- Buyers from other parts of the country were active in 60 per cent of Atlantic Canada housing markets. (9/15)
- Newfoundland and Labrador and New Brunswick are seeing an influx of people returning home after working in Alberta’s oil sector.
- Luxury sales were up in Halifax-Dartmouth, Saint John and Kings County.