First-time homebuyers in Saint John ought to proceed to anticipate a aggressive and costlier housing market in 2022, in keeping with realty predictions.
A brand new report by Royal Lepage says costs are rising within the metropolis at charges far outpacing the nationwide common, and can proceed to rise. This is similar conclusion reached by the Saint John Actual Property Board.
Lincoln Thompson, the Royal Lepage spokesperson for New Brunswick, mentioned residential residence costs, together with homes, condos and flats, have grown 36 per cent between the final quarter of 2020 and the final quarter of 2021. The common residence price $190,700 in 2020, and rose to $260,000 in 2021.
“We’re seeing vital progress final yr and the yr earlier than as nicely,” he mentioned.
The report says solely Kingston, Ont., has seen a much bigger year-over-year proportion improve.
For a similar interval, nationwide residence costs rose by 17 per cent, to $779,000 within the fourth quarter of 2021
In response to the Saint John Actual Property Board, 2021 residence gross sales from St. Stephen to Sussex “obliterated” the annual report set in 2020 by 10 per cent.
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In December 2021, six fewer houses have been offered than in December 2020, however complete cash spent on houses was 10 per cent larger, the board mentioned.
Board president Corey Breau mentioned low stock, a rise in consumers and excessive sale costs will proceed.
“Costs are positively going to rise,” he mentioned. “We’re undecided how a lot they will rise, however the one factor that’s going to stabilize the market is extra stock.”
Breau mentioned sellers are hesitant to record their homes in worry that they will not discover anyplace reasonably priced to go. Persons are additionally nervous about having folks of their residence due to the COVID-19 pandemic. If COVID instances fall, the latter may very well be much less of an issue in 2022.
In December 2021, gross sales have been 30 per cent above the five-year common and 65 per cent above the 10-year common for the month of December, the board mentioned.
And about 21 per cent extra houses have been offered in 2021 in comparison with 2020.
In Saint John, costs have been decrease in comparison with the remainder of the nation, Breau mentioned, and the rise in costs is extra of a “value correction.”
Breau mentioned first-time homebuyers ought to depend on skilled actual property brokers. And holding out for a lower in costs might not repay.
“You may in all probability see costs keep the identical or stabilize,” he mentioned. “I do not suppose they will come down an excessive amount of.”