Real estate Big boost to buyer confidence, says president of the New Brunswick Real Estate Association
Though the number of homes selling in New Brunswick has dropped from the record highs of 2008, the average price of home sales continued to rise in the province last month.
The average resale price of residential property in New Brunswick in June was $160,400.
The average resale price of residential property in New Brunswick in June was $160,400, a 1.8 per cent increase from the average price of $157,505 in June 2008, the New Brunswick Real Estate Association announced Tuesday.
Last month 856 residential properties were sold, down 7.3 per cent from the 923 residential properties sold in June 2008.
"We were coming off some record high months in some of your peak months of 2007 and 2008," said Dwayne Hayes, president of the New Brunswick Real Estate Association.
He said June's numbers are at a more normal level and pointed out the number of houses sold per month is climbing again after the seasonal winter low months, which also saw lower consumer confidence due to the economic downturn.
"Many potential buyers who delayed purchasing decisions late last year and earlier this year when economic uncertainty peaked are now returning to the housing market," Hayes stated in a news release.
In May 816 residential properties were sold, which marked the first time in 10 months sales passed the 800 mark.
"I think you're starting to see the market balance out," Hayes said. "It's good for the home seller - the vendor who wants to realize some equity from their home - they haven't lost any value of their home which is very, very positive."
"It's good for the buyer because the prices haven't gone out of control. And the prices haven't dipped either, which helps instill some buyer confidence," he said. "It's one thing to realize there's value there and it's another thing to realize that value's being maintained. So that's a big boost to buyer confidence."
The largest increase in the average resale price was in northern New Brunswick where house sales averaged to $93,544, up 3.2 per cent from June 2008. But only 62 residential properties were sold in the region last month, down from 70 in June last year.
Melanie Daley, president of the Northern New Brunswick Real Estate Board, said the smaller volume of sales in the north, compared to New Brunswick's larger cities, makes average price fluctuation easier.
"It's an averaging process and if you get one or two homes that are a little out of the normal that get tossed in there then that can drive your average up," said Daley.
Fredericton saw the next highest increase as average home sales rose 1.7 per cent to $171,784, and 329 homes were sold up from 274 in June 2008. Saint John had a 1.5 per cent increase in June in the average home sale price to $172,731 and sold 209 houses, down from 272 the same month last year. Meanwhile Moncton's average resale price stayed relatively flat growing 0.3 per cent to $151,895 from June 2008 and sold 256 homes last month down from 307 the same month last year.
Source: Published Wednesday July 22nd, 2009 - Telegraph Journal