The Fredericton real estate market is at an all-time high, with steady growth projected throughout 2021. With countless activities, local attractions, abundant natural beauty, and plenty of east coast charm, it’s no wonder real estate in Fredericton is in demand.
Below, we’re taking an inside look at just how well this New Brunswick market has fared over the past year, and why industry experts don’t foresee any slowing in Fredericton’s momentum in the months ahead!
Fredericton Real Estate Market Trends
In February 2021, the Real Estate Board of the Fredericton Area Inc. reported that the number of homes sold though MLS® skyrocketed by 35.6% when compared to the same month a year ago. With 183 homes sold, this marked a new record for the month; the highest sales had ever been in February was when 162 homes sold in 2007.
These statistics for February are an example of the soaring real estate market for the first two months of 2021. January and February 2021 have totalled 319 home sales, another record for the Fredericton real estate market, with a 20.8% increase from the same period in 2020.
When analyzing prices, the average selling price of a home was $226,323 in February 2021, yet another record-breaker, and 9.9% higher than February 2020. Taking January and February 2021 into account, the average price of homes sold was $220,705, a staggering 14.6% elevation from the same time in 2020.
When examining the total dollar sales amount for homes sold in February 2021, there is a surge of 48.9% from the same month in 2020. This brings the total dollar amount of homes sold up to $41.4 million. Following the trend of this highly desirable real estate market, this number is another record-breaking high. Compared to February 2020, the increase of new homes on the market was up by 3% in February 2021, with only 7 new homes added to the market. At the end of February 2021, 411 homes remained as active listings, a decline of 44.4% from the conclusion of February 2020. It’s been over two decades since February saw active listings this low in the Fredericton market.
Months of inventory track the number of months it takes to sell inventory, evaluating the activity of the current rate of sales. By the end of February 2021, months of inventory was 2.2, whereas it was 5.5 at the end of February 2020. In years past, the long-run average was 9.8 months.
Province-Wide Comparisons and Record-Breakers
An in-depth examination of February 2021 shows the residential dollar volume for the Fredericton real estate market was $41,417,059. Greater Moncton was $77,616,612, and Northern Region NBREA was $19,398,850. Saint John was similar to Fredericton with $46,790,674, bringing the New Brunswick residential dollar volume to $185,223,195.
When comparing the average residential price in neighbouring cities, numbers show $226,323 in Fredericton, $259,587 in Greater Moncton, $150,379 in Northern Region NBREA, $219,675 in Saint John and $224,785 in New Brunswick.
What’s causing these record-breaking sales prices and driving the demand for homes in the Fredericton real estate market, as well as in other cities across the province? Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada, says that “We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods. This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”
Record-Breaking Sales Throughout 2021 Projected for the Fredericton Real Estate Market
The Fredericton real estate market has taken off with record-breaking sales, and this is just the beginning. The expectation is that 2021 will continue to be a seller’s market, as buyers outnumber the amount of available inventory. This is seen commonly across the Canadian real estate market, and RE/MAX expects the Fredericton real estate market will increase anywhere from 3% to 4% in average price, bringing the average price for properties in the city up to $196,391.
It’s expected that COVID will continue to impact sales and what’s available for purchase, with an increase of 5% in home sales across the region anticipated for 2021. This is contingent upon infection rates stabilizing and more and more sellers listing their homes. For sellers, this also means inventory levels hovering around 2-3 months in 2021, making this year an ideal time to sell.