Average price for a home in St. John’s Newfoundland

May 18, 2010 · Filed Under CMHC Reports · Comment 

According to CMHC in their latest press release, the First Quarter of 2010 provided record sales of existing homes and  increased inventory throughout the St. John’s real estate market.  The average MLS® residential price for St. John’s continued to rise, reaching another record level peaking at $251,485 in March. The number of MLS® sales increased 25 per cent with 665 sales compared to 2009’s first quarter sales of 532 units.

The average MLS® residential price in the CMA was 19 per cent higher than it was a year ago, maintaining an aggressive two year growth trend of 48 per cent to the end of the first quarter. With increased buying activity during the January to March period, the average MLS® residential price was $245,069 compared to $205,324 during the first quarter of 2009 and a much lower $164,147 in 2008. The relative strength in the average MLS® residential price continued to be supported by positive economic and demographic fundamentals, as well as increased numbers of higher priced newly built home sales going through the MLS® system in the first quarter.

At the provincial level, there were 783 MLS® sales compared to 623 in the first quarter of last year. The average MLS® residential price in Newfoundland was $230,268 during the January to March period – an increase of 18 per cent.

Positive economic activity and in-migration to the St. John’s region, combined with an active resale market, positioned the market as balanced during the first three months of the  year.  In terms of unit sales, the first quarter represented a record level of buying activity.  Available inventory increased approximately five per cent and listings remained on the market for an average of 61 days in the January to March period, while prices continued to climb.

For the St. John’s area, there was a 25 per cent increase in new listings compared to the same period last year. However, active listings averaged only a moderately higher level at 1,096 during the quarter versus 1,039 during the first quarter of 2009.  Having peaked at a record 40 per cent in December 2009, during a brief sellers’ market, the unadjusted sales-to-active listings ratio averaged a considerably lower 20 per cent during the first quarter.  This compared favorably to 17 per cent during the same period in 2009 and signaled balanced first quarter resale market conditions.

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St. John’s Real Estate Market Posts Strong First Quarter in 2010

May 17, 2010 · Filed Under CMHC Reports, Market Trends and St. John's Real Estate · Comment 

Historically low mortgage rates, combined with strong economic and demographic trends, buoyed local demand for housing in the first quarter of this year.  January to March housing starts posted record results, while existing home sales and prices both continued to advance.

Overall, the St. John’s real estate market was supported by growth in  employment,  income and population, healthy consumer spending and on-going economic momentum spurred by the local oil sector.

Residential construction activity posted record results during the January to March period, due in part to an unseasonably mild winter.  New home prices also advanced in line with  the general market trend.  First quarter housing starts activity increased 15 per cent, with 246 starts versus 214 in 2009’s first quarter.  Single-detached starts increased by 23 units  or 20 per cent, with 199 starts recorded versus 166 during the first three months of last year.

The multiple starts segment was flat, with 47 starts during the quarter compared to 48 a year ago.  The only sub-market which reported increased construction activity was the St. John’s City submarket during the January to March period (104 starts compared to 88 a year ago), with Mount Pearl posting 15 starts versus 17 during 2009’s first quarter and Paradise recording 62 versus 65 a year ago.  Conception Bay South (CBS) recorded 22 starts in the first quarter, consistent with 2009’s first quarter while starts in Torbay remained flat after this first quarter with 14. In the remainder of the CMA, starts increased from eight in the first three months of 2009 to 29 this year.

Price growth continued, with the average new house price increasing in all submarkets. In fact, the average price of a new home surpassed the $325,000 mark in St. John’s City and the $350,000 mark in Torbay. Average sales price ($354,333) and average sales growth (26.4 per cent) were highest in the Torbay submarket of the St. John’s CMA. The average new single-detached house price for the overall St. John’s CMA increased nearly 20 per cent to a record $311,638 compared to $259,990 during the first quarter of 2009. CBS  posted the lowest average new house price of $248,328 during the quarter. Paradise had the second highest rate of new house price growth in the first quarter at 25.1 per cent to  $333,388.

Throughout the St. John’s area, approximately 47 per cent of all new construction activity fell within the $300,000 plus range during the quarter.  The largest growth in market share occurred in the $400,000+ segment.  Overall, new home price growth remained brisk throughout the quarter.

SOURCE: CMHC Housing Now St. John’s CMA

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April Housing Starts in St. John’s Area

May 10, 2010 · Filed Under CMHC Reports · Comment 

ST. JOHN’S, May 10, 2010 – Urban housing starts increased during the month of April, according to preliminary  released today by Canada Mortgage and Housing Corporation (CMHC). April’s housing starts totaled 129 throughout the St. John’s area versus 87 starts in April of 2009. There were four additional starts recorded outside the St. John’s area, for a total of 133 provincial urban starts compared to 106 last April.

“April’s brisk new home construction activity positioned the market 48 per cent ahead of the same month last year and 25 per cent year-to-date,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Continued growth in local employment, income and population combined with low mortgage rates has supported residential construction activity during the first four months of 2010,” added Janes.

In urban centres across Canada, total housing starts increased 79 per cent with 14,995 recorded in April compared to 8,387 during April of 2009. Throughout Atlantic Canada, there were 573 urban housing starts posted versus 419 the previous April, an increase of 37 per cent.

SOURCE: CMHC

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