Well, it’s almost a week since the big Hebron deal was signed. Lots of talk, hype and rumors about the real estate market has surfaced. I’ve “heard” houses being jacked up 40k to 50k the day after and keep getting questions from my past clients….are they true? Remember the quote, “Believe half of what you see and none of what you hear.” There have been a fair number of listings this past week. None to me seem 40 to 50k over where they should be. Does this mean that people will not be cashing in on the positive news? Of course they will. If I personally had my house to sell I would “try” it as well.
I was interviewed by CBC Radio last week, the same day that Hebron was signed, and asked my opinion on the effect of the news. Here is a clip of the interview. (Click here for the full article NL housing prices jump as Hebron signed)
Steve Winters, a realtor with Remax, said he noticed the trend begin in the spring, as speculation swirled of a coming Hebron deal.
“We’re starting to see the prices jump, and what $150,000 could get you last year is not going to get you near this year,” Winters said, adding that people from Western Canada, in places such as Fort McMurray and Vancouver, are buying homes on the northeast Avalon sight unseen.
Winters said some people in Newfoundland may get pushed out of the market because of the sudden increase, and that home buyers may not be able to buy the house for which they just received mortgage approval from a bank.
Personally, my thoughts for the rest of this year: gains will be fairly consistent in an upward trend. Maybe another 5% gain til the end of 2008. Remember we have already seen at least a 20% increase from the beginning of the year from current stats.
CMHC is stating that the next 3 – 5 years look VERY promising for Newfoundland Real Estate. A 15% – 20% increase per year. Quite possible to double the cost of a property in St. John’s in 5 years in a good area.
19 Moores Drive Asking $199,900
** SOLD** Well maintained registered 2-apt home in Mount Pearl off Ruth Ave. Large landscaped lot backing on greenbelt. Large 2 car detached garage with rear yard access. New vinyl windows, new electrical. Basement apartment has 2 bedrooms and is currently rented. Great investment property. Call Fraser or Stephen Winters for more information or a private viewing.
Worth potentially 20 billion dollars to Newfoundland over the next 20 years and over 3000 jobs to be had. Today Danny Williams unveiled the Hebron deal in a live news conference at the Fairmont Hotel in St. John’s. Start of construction is aimed for 2012 with oil projected to flow in 2017.
The day has finally arrived. All newspapers and local websites are anticipating a formal announcement tomorrow from Premier Danny Williams giving the thumbs up for Hebron. Good timing seeing that the deadline for the agreement was slated to expire on Thursday.
The breakdown in ownership is Chevron Corp. which owns 28 per cent, Exxon Mobil Corp. the largest shareholder with 37.5 per cent, Petro-Canada and Norway’s state-owned StatoilHydro ASA own the rest. The province of Newfoundland will receive a 4.9 per cent equity stake in the project.
So far this year St. John’s Real Estate has jumped about 20% with a projected 15% increase in 2009. In the beginning of the year CHMC went on record saying 7 – 8% increase in housing prices while Remax was deemed highly optimistic with their 12% projection for 2008.
With this impending news release, how will the real estate market react? When will the oil companies start moving people into the St. John’s and start buying up properties? Is too much of a good thing too fast good for Newfoundland Real Estate?
25 Tiffany Lane unit 314 $194,900 - SOLD-
Located near Kents Pond in East End St. John’s, this 2 bedroom condo has it all. Open design concept, hardwood floors throughout most of property. Two spacious bedrooms. Two bathrooms. Separate storage room located inside condo as well as plenty more in basement of building. Lots of upgrades in past few years including new roof and new vinyl windows. Building is well maintained and beautifully landscaped. Secure building with elevator. Near walking trails and all amenities. Asking price is $194,900. Call Fraser or Stephen Winters today for more information. 682-9245 or 682-9045
Released from CMHC today
The St. John’s area housing market recorded a stellar second quarter, thanks to a bustling economy, positive net-migration and stable consumer confidence. These factors combined increased the level of demand for both new and existing homes throughout all municipalities within the region during the April to June period. Strength in the existing homes market continued, while growth in residential construction activity was led by a surge in starts of single-detached homes. As expected, the positive momentum from last year’s Hebron and White Rose oilfield extension announcements, combined with favourable demographic and economic fundamentals, produced record second quarter results.
Although 2004’s record second quarter housing starts actually exceeded second quarter 2008 levels by 110 starts, demand for new homes from April to June was exceptional within the St. John’s region. In fact, starts were limited only by builder capacity constraints due to a very tight labour market for skilled trades. In support of this, most new home contracts signed so far this year have been for completion as far as nine to 12 months out and include final price protection clauses for builders. Such high demand boosted residential construction activity throughout the St. John’s region during the second quarter and resulted in double-digit growth.
News this morning (5:45am) postponed the 190th St. John’s Royal Regatta due to weather, maybe til Thursday (personally I’d say Friday) Could make it a long weekend in St. John’s. So it’s business as usual this first Wednesday in August.
Speaking of business….the Hebron deal has been postponed as well. Final last minute details are still being worked out. The memorandum of understanding expires August 21st.