Home sales retreat in May
Residential activity reported through the MLS® System of the Saint John Real Estate Board was down in May 2010 from the elevated levels reported in the same month last year.
According to statistics provided by the Board, home sales numbered 170 units in May 2010. This is a decline of 26 per cent from the second best May on record in 2009. Sales in all of New Brunswick, by comparison, were down 20 per cent from levels reported last May.
New supply was also down in May. The number of new listings on the Board’s MLS® System dropped 19 per cent on a year-over-year basis to 417 in May 2010.
The overall number of homes for sale on the market continued to climb, albeit at a slower rate. There were 1,632 active residential listings on the Board’s MLS® System at the end of May 2010, up five per cent from May 2009. This is the smallest year-over-year gain in almost two years.
“Sales activity has been forecast to soften as we head into the second half of the year, given the new mortgage rules and the likelihood of further rate hikes,” said Jason Stephen, President of the Saint John Real Estate Board. “An accompanying cooling trend in the number of new listings will help in maintaining a good balance of supply and demand going forward.”
The average price for homes sold in May 2010 was $173,872. This was a decrease of eight per cent from last May’s aberrantly high peak. For perspective, the average price in May 2010 was still the seventh highest ever. The average price of home sales in New Brunswick edged down four-tenths of one per cent year-over-year to $166,057.
The total value of all home sales was $29.6 million in May 2010, down 32 per cent from one year earlier. The monthly dollar volume for residential sales in New Brunswick declined 20 per cent from last May.
Total sales in Saint John numbered 202 units in May, down 19 per cent from May 2009. The total value of these property sales was $32.2 million, a decrease of 28 per cent on a year-over-year basis.
There were 9.6 months of inventory at the end of May, up from 6.7 months at the same time last year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The Saint John Real Estate Board is an association of over 300 REALTORS® that provides services to and sets standards for members. The Saint John Real Estate Board covers the southern part of New Brunswick to the U.S. border in St. Stephen, and includes the counties of St. John, Kings, Charlotte and portions of Queens County.