The State of the Fredericton Real Estate Market in 2025

Trends, Insights, and Opportunities in the Greater Fredericton Area Housing Market

Let’s explore the state of the Fredericton real estate market in 2025. The Greater Fredericton Area real estate market is a dynamic and ever-changing landscape, influenced by trends in sales, pricing, mortgage rates, and inventory. Whether you’re a first-time buyer, seasoned investor, or considering selling your property, staying informed about market shifts is key to making the right decisions. In this post, we take a detailed look at the latest data, uncovering insights from a decade of sales, the impact of interest rates, and the current state of the market. With predictions for 2025, this comprehensive analysis will help you navigate Fredericton’s housing market with confidence.

A Decade of Single-Family Sales: A Closer Look at the Trends

The real estate market is always evolving, and the Greater Fredericton Area is no exception. This first graph provides a fascinating snapshot of single-family home sales from 2015 to 2024. Each bar represents a year of activity, highlighting how the market has shifted over time.

Starting in 2015, we can see that sales numbers were steady, with 1,846 single-family homes changing hands. The market showed consistent growth in the following years, peaking in 2021 with an impressive 2,949 sales—a clear indication of the post-pandemic surge in housing demand.

However, as the graph illustrates, this peak was followed by a notable decline in 2022 to 2,330 sales. While this drop may seem significant, it’s important to consider external factors such as rising interest rates, changes in buyer behavior, and economic conditions that impacted the housing market during this time.

In 2024, the numbers have rebounded slightly to 2,154 sales, suggesting that the market is finding its balance after the turbulence of the past few years. This gradual stabilization could be a sign of a more predictable market going forward, which is encouraging for both buyers and sellers.

Each of these data points represents a story—families finding their dream homes, investors seizing opportunities, and the overall vibrancy of Fredericton’s real estate market. This decade-long view is a powerful reminder of how dynamic and resilient the housing market can be.

If you’re considering buying or selling in 2025, this data underscores why now could be a great time to make your move given the state of the Fredericton real estate market in 2025. Buyers can take advantage of a stabilizing market and potentially negotiate favourable terms, while sellers can benefit from the steady demand we’ve seen this year.

How Price Impacts Selling Speed: Median Days on Market in 2024

The second graph highlights an important factor for anyone considering selling a home: how quickly homes in different price ranges are finding buyers. The median number of days on the market in 2024 reveals fascinating trends in the Greater Fredericton Area real estate market.

For homes in the $250,000 – $350,000 range, the median time to sell was just 20 days—a testament to the strong demand for homes in this price bracket. Moving up the ladder, homes priced between $350,000 and $550,000 took a median of 21 days to sell, showing similar popularity with buyers looking for mid-range options.

For higher-priced homes, the timeline to sell naturally extended. Homes in the $550,000 to $750,000 range took a median of 42 days to sell, while those priced $750,000 and above typically took 63 days. These numbers highlight a slower pace in the luxury market, which often attracts a smaller pool of buyers.

These statistics are essential for sellers to understand because the price point of your home can significantly impact how quickly it may sell. For buyers, knowing these trends can help set realistic expectations when negotiating or preparing to make an offer.

If you’re considering selling in 2025, this information is a valuable tool for determining your pricing strategy. The median days on market by price range provide insight into how your home might perform based on its value. For tailored advice and expert guidance, reach out to our team at The Right Choice Realty. We’re here to help you navigate the market and ensure your home is positioned to sell at the right price and in the right timeframe given the state of the Fredericton real estate market in 2025.

Price Range Breakdown: Sales Trends from 2022 to 2024

This section dives into home sales in the Greater Fredericton Area across three key years—2022, 2023, and 2024—to uncover trends in buyer activity and price range preferences. By examining how the market has shifted over time, we can also provide informed predictions for 2025.

Comparing 2022, 2023, and 2024: Key Observations

The most active price range over these three years has consistently been mid-range homes, but there are subtle shifts worth noting.

In 2022, the most popular range was homes priced $300,000 to $349,000, accounting for 12.09% of all sales (297 homes).
In 2023, this segment remained dominant, making up 12.81% (276 homes).
By 2024, homes in this range saw steady activity, representing 12.68% of sales (278 homes).

This consistent demand highlights the affordability and appeal of mid-range homes for buyers, especially first-time homeowners and families.

Interestingly, homes in the $250,000 to $299,000 range also performed strongly, increasing their share of sales from 12.05% in 2022 (302 homes) to 11.55% in 2023 (249 homes) and 11.09% in 2024 (243 homes). This gradual decline may indicate rising home prices or a shift in buyer preferences toward slightly higher price ranges.

On the higher end, homes priced $750,000 and above have consistently accounted for a small percentage of sales:

2022: 0.49% for $750,000-$799,000 (12 homes); 0.16% for $1,200,000+ (4 homes).
2023: 0.51% for $750,000-$799,000 (11 homes); 0.09% for $1,200,000+ (2 homes).
2024: 0.87% for $750,000-$799,000 (19 homes); 0.18% for $1,200,000+ (4 homes).

These numbers suggest that while the luxury market remains niche, there is a slight uptick in activity in the upper price ranges, possibly driven by high-income buyers or relocations to the region.

Predictions for 2025: What to Expect

Building on the trends from the past three years, here’s what we anticipate for the market in 2025:

Continued Strength in Mid-Range Homes: Homes priced between $300,000 and $399,000 will likely remain the most active segment, supported by strong demand from families and first-time buyers.
Pressure on Lower Price Brackets: Homes under $300,000 may see a further decline in activity as rising prices make these properties less common.
Gradual Growth in Luxury Markets: While still a small segment, homes priced $750,000 and above may experience incremental growth as Fredericton attracts more high-income buyers or out-of-province relocations.
Balanced Market Conditions: After the turbulence of previous years, we expect the market to stabilize, offering opportunities for both buyers and sellers to make strategic decisions.

Ready to Buy or Sell in 2025?

This breakdown of sales trends can help you better understand where your home fits in the Fredericton real estate market in 2025 and what opportunities lie ahead. If you’re considering selling in 2025, knowing the demand for your price range can help you position your property effectively. For buyers, this analysis offers a clear picture of where to look for the best value.

The Impact of Rising Mortgage Rates on Monthly Payments: What Buyers Need to Know

The rapid increases in mortgage interest rates since 2021 have significantly impacted monthly payments for Canadian homeowners. For instance, a $300,000 mortgage with a 25-year amortization at a 1.79% interest rate in October 2021 resulted in monthly payments of approximately $1,240. While the rate have been slowly dropping quarter by quarter, in January 2025, with interest rates of 4.39%, the monthly payment for the same mortgage amount increased to about $1,640, adding $400 to the homeowner’s monthly expenses.

This trend is consistent across various mortgage amounts:

$500,000 mortgage: Payments increased from approximately $2,066 to $2,706, an addition of $640 per month.
$700,000 mortgage: Payments rose from about $2,892 to $3,788, adding $896 monthly.
$900,000 mortgage: Payments went up from around $3,718 to $4,870, an increase of $1,152 per month.

These substantial increases in monthly payments are a direct consequence of the rise in interest rates over the past few years. According to the Bank of Canada, by November 2023, about 45% of mortgages taken out before the interest rate hikes had already experienced payment increases. This percentage is expected to rise, with many borrowers facing significant payment increases upon renewal. Bank of Canada

The Canada Mortgage and Housing Corporation (CMHC) provides a practical example: for a $500,000 mortgage with a five-year fixed-rate term and 25-year amortization, an interest rate increase from 1.94% to 5.45% would lead to nearly a $1,000 increase in the monthly payment. Canada Mortgage and Housing Corporation

As we look ahead, it’s important to note that a number of Canadian homeowners will be renewing their mortgages in 2025. Reports indicate that at least 1.2 million Canadians are facing a mortgage renewal in 2025, with 85% of those loans originally contracted when interest rates were at or below 1%. This scenario suggests that many homeowners will encounter “significantly higher interest rates” upon renewal, leading to increased monthly payments. CP24

Given these developments, it’s crucial for homeowners and prospective buyers to assess their financial situations carefully. Understanding how interest rate fluctuations affect mortgage payments can aid in making informed decisions and preparing for potential increases in housing costs in the Fredericton real estate market in 2025.

Months of Inventory: Understanding Fredericton’s Market Dynamics

The next graph focuses on months of inventory, a critical metric that measures how long it would take to sell all homes currently for sale if no new listings were added. This figure helps categorize the market:

0–5 months: Seller’s Market (high demand, low supply)
5–8 months: Balanced Market (supply meets demand)
8+ months: Buyer’s Market (high supply, lower demand).

In December 2024, Fredericton recorded 3.3 months of inventory, a slight increase from 3.1 months in December 2023. This consistency indicates the market has maintained its status as a seller’s market over the past two years, with demand outpacing the supply of available homes.

Historical Context: A Decade of Market Evolution

To better understand the significance of these numbers, it’s helpful to look at how months of inventory have shifted over the past decade.

In 2022, the months of inventory stood at 3.4, also firmly within seller’s market territory.
2021 marked the peak of the post-pandemic housing boom, with just 1.2 months of inventory—one of the tightest markets Fredericton has ever seen.
Moving further back, 2019 saw a more balanced market with 5.8 months of inventory, while 2017 transitioned into a buyer’s market with 9.5 months.
A decade ago, in 2014, the market was firmly in buyer’s territory with 15.9 months of inventory.

These shifts illustrate the cyclical nature of the real estate market and highlight how external factors—such as economic conditions, interest rates, and housing demand—shape inventory levels.

What Does This Mean for Buyers and Sellers in 2025?

With inventory levels hovering around 3.3 months, 2025 is shaping up to remain a seller’s market. This environment typically benefits sellers, as limited supply can drive up competition and, in some cases, home prices. If you’re considering selling this year, these numbers suggest you may still be able to capitalize on strong demand.

For buyers, the ongoing low inventory means you’ll need to act quickly when a home you love comes on the market. Working with a knowledgeable real estate team like The Right Choice Realty can help you navigate this competitive environment and find opportunities that fit your needs.

Planning Your Next Steps?

Whether you’re thinking of buying or selling in 2025, understanding market dynamics of the Fredericton real estate market in 2025, like months of inventory can help you make informed decisions. Reach out to our team for expert guidance tailored to your goals. We’re here to help you succeed in any market!

Your 2025 Real Estate Game Plan: Insights and Next Steps

As we reflect on the data, one thing is clear—the Greater Fredericton Area real estate market continues to evolve, presenting unique opportunities and challenges for buyers and sellers alike. From the steady demand for mid-range homes to the impact of rising mortgage rates and the continued seller’s market dynamics, the insights shared here can help you make informed decisions in 2025.

If you’re considering buying, selling, or simply exploring your options this year, there’s no better time to act. Our team at The Right Choice Realty has the local expertise, market knowledge, and dedication to help you achieve your real estate goals. Whether you’re looking for the perfect home or want to maximize the value of your property, we’re here to guide you every step of the way.

Don’t wait—contact us today to discuss your next steps in the Fredericton real estate market in 2025. Let’s make this the year you achieve your real estate dreams!

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