Fredericton Real Estate

There are several reasons for the performance of the real estate market in Fredericton in 2008.

1 Weather: This may seem like an odd comment but we had the worst winter we have had in years, so the early months, January to March, were very slow and then very early in the summer, the rains began. People like to get out to look at houses in nice sunny weather. Lack of sunshine causes mild depression in many people.

2 Stock Market: The real estate market is much like the stock market, and it reacts to bad economic news and uncertainty. There has been a great deal of bad news out of the U.S this year, things like economic troubles, financial difficulties such as banks that fail and housing foreclosures. Most Canadians know that historically what happens in the states will usually happen in Canada in a couple of years. Our economy is so intertwined with the U.S. economy, it is very difficult to avoid. Our banks may not fail but interest rates may rise or mortgage companies could tighten their requirements.

3 Political: The political environment is not good. There is no direction, no good news in the future. Will there be an election? How will it affect New Brunswickers?

4 Baby Boomers: The baby boomers are approaching 65 years of age, which means 47% of our population are in the 60 to 65 range. People in their 60’s tend to want to move closer to hospitals and other amenities, they tend to want to get away from their big 2 story homes in the suburbs with stairs and move to a one level bungalow or condo. This accounts for the surplus of over priced 2 story homes on the market right now.

5 Gasoline Prices: Last but certainly not least is the rising price of fuel. This is a big one because it affects all aspects of our lives. Rising gas prices force the cost of every other commodity up, so in turn the cost of living. People who heat with oil are already finding out that 2009 is going to be an expensive winter. It’s human nature for people to hunker down when there is bad news and adopt a “wait and see” attitude. Can they afford to move? Can they afford to stay?

The result of these factors is a buyer’s market, more listings than there are buyers, so if you are thinking of making a move, Call Frankie at 476-2155. Frankie will find you the perfect solution.