Home sales continue to cool in July

Residential activity reported through the MLS® System of the Saint John Real Estate Board was down from year-ago levels in July 2010. New supply is also adjusting to lower levels of demand, and the overall supply of homes available on the market has now topped out.

According to statistics provided by the Board, home sales numbered 171 units in July 2010, down 26 per cent from a near-record for the month last year. Sales in all of New Brunswick, by comparison, declined 22 per cent from levels in July 2009.

New supply also continues to trend downward from last year’s peak levels. The number of new listings on the Board’s MLS® System fell 25 per cent on a year-over-year basis to 371 units.

The overall number of homes for sale on the market posted the first decrease in over two years in July. There were 1,572 active residential listings on the Board’s MLS® System at the end of July 2010, down seven per cent from year-ago levels.

“Softening demand is largely the result of accelerated home purchases late last year and earlier this year,” said Jason Stephen, President of the Saint John Real Estate Board. “However, the factors responsible for that volatility are now largely in the rear-view mirror. Looking ahead we expect a more stable market to emerge, with demand coming back into line with economic fundamentals.”

The average price for homes sold in July 2010 was $176,061. This was up 13 per cent from the low reading last July. The average price was also weaker than expected last August, so next month may see another outsized gain; however, the average home price shot to record levels last fall, so year-over-year comparisons are likely to come back to earth in September.  The average price of home sales in New Brunswick rose five per cent year-over-year to $159,513 in July.

The total value of all home sales was $30.1 million in July 2010, down 16 per cent from a year earlier. The monthly dollar volume for residential sales in New Brunswick declined 18 per cent from last July.

Total sales in Saint John numbered 191 units in July, down 32 per cent from July 2009. The total value of these property sales was $32.4 million, a decrease of 16 per cent on a year-over-year basis.

There were 9.2 months of inventory at the end of July, up from the same time last year (7.4 months). 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.