St. John’s and Regina Real Estate markets up 0.8%

March 30, 2009 · Filed Under St. John's Real Estate · 1 Comment 

Just barely keeping our heads above water, real estate prices in St. John’s (and Regina) are up 0.8% for January and February according to Stats Can. Slightly higher are Saint John, Fredericton and Moncton which rose  1.4%.

The biggest decliners are in Edmonton where the prices of new homes fell almost 10.4% year over year, and Calgary saw a drop of 6.5%

Prices are holding steady St. John’s and should continue to do so for the remaining of the year.  Multiple offers have declined considerably but can still be seen on certain properties.

Houses in the 120k to 160k range are the hot properties now.  Average price for a home in St. John’s is around the 200k range.  I have noticed a drop in activity in the 350k price range.  Especially in the 450k – 600k range.

Tags: , ,

Economy 2009: Newfoundland Real Estate Section

March 26, 2009 · Filed Under Newfoundland Economy and St. John's General · Comment 

The budget was outlined today for spending in Newfoundland and Labrador. $6.7 billion in spending to be exact. Here is a link to the Newfoundland Labrador budget highlights, Building on our Strong Foundation

On the real estate front, the Newfoundland Government released their take on Newfoundland housing market conditions. While most of their data is from CREA and previously discussed earlier on this blog, I thought it important to “cut and paste” the PDF of the real estate section from the Economic Research and Analysis website as it recapped and touched on a number of important areas and facts.

Housing market conditions were robust in 2008. Housing starts increased to a level not seen since the early 1990s. Residential sales activity and prices reached record levels. Other capacity indicators like rental vacancy rates are at, or remain near, historical lows. Increased housing demand stemmed from strong economic performance, low interest rates, optimism about future major projects, and household formation.

Housing Starts

During 2008, housing starts totalled 3,261 units, up 23.1% compared to 2007. This was in contrast to activity in the Maritimes and Canada, where starts declined by 7.9% and 7.6%, respectively. While urban areas account for approximately two thirds of housing starts in the province, both urban and rural areas recorded significant gains in 2008. Urban housing starts were up 22.1% to 2,229 units and rural starts were up 25.2% to 1,032 units. Total housing starts are expected to fall to 2,648 units in 2009 as the global recession and slumping housing market in the rest of Canada weakens local consumer confidence. Since 1989, housing starts have averaged 2,333 units per year. Therefore, even with the decline expected this year, housing starts will be at relatively high levels for the local industry.

Residential Sales and Prices

Residential sales activity and prices increased to record levels last year. The number of residential properties sold in the province through the Canadian Real Estate Association’s Multiple Listing Service® (MLS®) during 2008 was 4,695, an increase of 5.0% from 4,471 in 2007.  This performance was in contrast to the national residential market. MLS® sales decreased by 17.1% in Canada and 8.9% in the Maritime provinces during 2008. According to CREA, the number of MLS® sales in the province is expected to decline by 14.8% in 2009 to 4,000.
Strong demand for housing, especially during the summer months, created a buying frenzy in 2008. The average number of active MLS® listings in the province (a measure of housing availability/supply) declined by 38.3% to 1,495 from 2,423 in 2007. Homes were being purchased as soon as they hit the market and sellers were receiving multiple offers — sometimes well above the asking price. As a result of increased demand, housing prices increased. During 2008, the average MLS® residential price was $178,477, an increase of 19.6% compared to 2007. The fourth quarter average MLS® residential price surged 27.2% over the fourth quarter in 2007, representing the only growth market in Canada.
Increased housing demand in recent years is the result of employment and income growth; household formation; low mortgage rates; and a positive business environment, facilitated in part by continued optimism surrounding a number of future major projects. In addition to these factors, industry indicated that demand for residential units was also being fuelled by expatriates living in other provinces and from residents who commute to other provinces for work purchasing property for personal use and/or investment purposes.

Rental Market
Rental vacancy rates are at or near historical lows throughout Newfoundland and Labrador. Vacancy rates in urban areas have decreased from a high of 15.4% in 1997 to just 1.1% in 2008. During 2008, vacancy rates were lowest in the St. John’s CMA (0.8%) and Corner Brook CA (0.9%), followed by Grand Falls-Windsor CA (1.9%), Gander (2.6%), and Bay Roberts CA (4.0%). Although vacancy rates are low, rental prices remain the lowest in Atlantic Canada. In 2008, the average rent for a 2-bedroom apartment in Newfoundland and Labrador was $596 compared to $635 in New Brunswick, $660 in Prince Edward Island, and $795 in Nova Scotia. It is expected that improved labour markets, positive netmigration, higher housing prices, and a lack of new rental construction will keep vacancy rates low and place upward pressure on rental prices.

Tags: , , , ,

New Listing Downtown St. John’s

March 23, 2009 · Filed Under New MLS Listings and St. John's MLS listings · Comment 

60 monroeJust listed in downtown St. John’s.  60 Monroe Street.  Pride of ownership shows in this beautiful three bedroom home. Laminate floors throughtout most of home. Open concept main floor with large living/dining room combo. Bright kitchen with exterior door to patio deck and large fenced back yard. There have been lots of upgrades to this home in recent years. Roof re-done approx 3 years ago. Some new vinyl windows. Nothing to do, just move in.  Asking price for this MLS listing, $139,900.  Call Fraser or Stephen Winters for more information.

Tags: , , ,

Don Campbell’s interview on The Hour with George Stroumboulopoulos

March 19, 2009 · Filed Under Real Estate Canada · Comment 

Last night, The Hour with George Stroumboulopoulos had a great interview with Don Campbell.  Don is a Real Estate Consultant, educator, investor and author of a some excellent real estate investing books, his newest Real Estate Investing in Canada: How to Create Wealth with the ACRE System.Real Estate Investment Newtork

The main discussion was based around whether the Canadian real estate market is going through a crash or just a correction. In interesting comment was how he referred to the last three real estate years as “The Tiger Woods Years”.  (ie can buy just about anything and make money).  The market is now in a correction stage according to Mr. Campbell.

Yes market activity has slowed, prices have dropped and new construction starts lower, but he is preaching that this is just a market correction, be smart on what/where you buy.

He was asked: what conditions do you look for with regards to buying a property in a particular city?

1) look for population increasing

2) average income increasing

3) affordable properties

4) highly accessible (ring road exits, subway, train stops etc)

What five cities in Canada are on his top list for the next 5 – 7 years?

1) Edmonton

2) Calgary

3) Barrie

4) Kitchen-Waterloo-Cambridge

5) Hamilton

Tags: , , , ,

Higher Average Home Prices in St. John’s

March 17, 2009 · Filed Under St. John's Real Estate · Comment 

VOCM.com has posted an article titled “Housing Prices Rise in Province“  Here is the article in it’s entirety.

“The average house price in Canada continues to fall, but not in Newfoundland and Labrador. The Canadian Real Estate Association says resale home prices fell 9.2 per cent last month to an average of just under $282,000. The association says historically low mortgage rates and improved affordability helped create interest last month, though supply remains high. It says the economic uncertainty may keep buyers in a “cautious mood”. Prices were lower in 14 of 25 major markets that the association measures, with the biggest drops in Vancouver,  Calgary and Windsor, Ontario. Saint John, New Brunswick, and the province of Newfoundland and Labrador were among markets that reported sharply higher average home prices, up more than 20 percent each. While it is a buyer’s market in many provinces, Newfoundland and Labrador remains more of a balanced situation.”

Tags: ,

Newfoundland & Labrador – One billion barrels and counting says Royal Bank’s Provincal Outlook

March 12, 2009 · Filed Under Newfoundland Oil and Gas, St. John's General and St. John's Real Estate · 1 Comment 

Here is a snippet straight from Royal Bank’s March Provincial Outlook outlining where Newfoundland & Labrador stand during this harsh global economic times.

“The Newfoundland & Labrador offshore oil industry celebrated a milestone in January with the production of its one billionth barrel of oil. This was yet another reminder of the long road traveled by energy developments off the province’s coast and their tremendous contribution to the transformation of Newfoundland & Labrador into a dynamic economy. Nonetheless, the nosedive in energy prices since last summer and declining production at the province’s maturing production wells have cut any festivities short. The real cheers might have to wait until late this year or early next when the White Rose project expansion enters into operation, giving the industry — and the provincial economy — a shot in the arm. In the meantime, decreasing oil output and lower-than expected crude prices will be a substantial drag on economic activity in the  province, and the main reason for our projected decline in real GDP in 2009 (down 1.2% following estimated growth of 1.3% last year). Further contributing  to the weakness will be an expected drop in mineral production (partly the result  of market-related downtime), as well as the recent closure of the Abitibi Bowater  newsprint mill in Grand Falls.

Despite the challenges, the mood in the province remains relatively upbeat.  Huge investment projects — including the C$2-billion hydromet nickel processing  facility in Long Harbour — are still going ahead and the provincial government recently announced a significant increase  in spending on infrastructures.

According to Statistics Canada’s P&PI survey, non-residential capital expenditures in Newfoundland & Labrador are set to increase the fastest among all provinces in 2009 (up by almost 13%). Residents who had departed the province earlier are flocking back . This stimulates demand for housing and consumer goods and services. Housing markets have been very tight until recently, and prices continue to show among the strongest year-over-year increases in the country. Home building is expected to remain relatively steady this year, with housing starts forecast to move a touch above last year’s 19-year high of 3,200 units. Such relatively robust domestic activity is expected to persist next year and be the dominant factor returning the provincial economy back into positive growth once oil production is stabilized by White Rose’s expansion.”


Tags: , , , , ,

The sky is not falling nor are St. John’s housing prices

March 5, 2009 · Filed Under CMHC Reports, First Time Buyers and St. John's Real Estate · 5 Comments 

chickenlittleCMHC held a seminar this week discussing the outlook for Newfoundland for 2009 with regards to economy and real estate market and prices.  As in most recent reports and news releases the message was the same: Newfoundland is expected to remain strong in 2009.

While most of Canada and the world are in doom and gloom, somehow Newfoundland is expected to escape the mayhem.  I know we are somewhat protected being on an island, but I can’t see St. John’s getting away virtually unscathed.  Then again it’s better to hear positive news then to hear the sky is falling on a daily basis.

In a quote from The Telegram’s article entitled “Local housing market, economy remain strong” Chris Janes was reported to say

“It’s still on the up and up locally in terms of our labour markets, economy, economic health overall, government’s fiscal situation, migration factors … and it’s just a lot of positive activity that’s hard not to be focused on,” Janes said following his address to a packed housing seminar in St. John’s Wednesday. “We still have very strong consumer spending, and that’s key to any province’s economic health and, right now in terms of all provinces in Canada, we have the strongest consumer spending of all.”

Where does this leave the St. John’s housing market……back to normal levels in my opinion.  Resale markets are not as “hyper” as they were last year and new homes will start to taper off to the point where we’ll see more and more “spec houses”.  If you remove last years 25% housing price increase, this year will be comparable to previous year before it…modest gains, balanced market, with the occasional multiple offer just to spice things up a little and keep it interesting.

Tags: , ,