2009 Year in Review
Ben Schmidt video blogs about Fredericton, NB and Oromocto, NB real estate marketplace, a year in review for 2009. First we looked at listings, and listings saw a decrease by 6% to 5758, down from 6173. The reason for this would be in November 2008, when the recession came into effect nationwide, everyone decided to have a wait and see attitude. If you didn't have to sell your house, thne you decided not to list.
Sales saw a decrease of only 1%, down from 2502 to 2479, so almost a dead heat. Now why would we have justas many buyers, with a reduced inventory? Well, interest rates were at an all time low, which encouraged spending and we didn't see an increase because of low inventory and some buyers would have a wait and see attitude as well.
So what happened to our average selling price? It increased! The average house price for a single family home for all of Fredericton, NB and Oromocto, NB was $170,996. Up 4%, $5000, from 164,777. How did that happen during a recession? Quite simply, our housing market has always been priced correctly!
I believe 2010 will be a tremendous year. Everyone that waited last year, will come on the market this year, and all the buyers that couldn't buy last year, because there wasn't enough inventory, now has the selection. Rates are expected to stay low all year, and house prices should increase again 3-5%. Buyers and sellers, get ready for a phenomenal year, maybe even close to 2007.
If you have any questions or want to debate what you read and hear, then email me at ben.schmidt@me.com or you can leave your comments below.