Existing homes in St. John’s Remain Cool Says CMHC

May 12, 2009 · Filed Under Market Trends, St. John's General and St. John's Real Estate · Comment 

The seller’s market has certainly ended.  Inventory has increased approximately 30 per cent and listings are taking longer to sell or expire (never sell during their contract period).

The St. John’s real estate market boomed during 2008, driven mostly by optimism created by the NL Government budget surplus, the Hebron oilfield announcement, and the Vale Inco Hydromet in Long Harbour.  In light of this, speculating buyers purchased homes from all price ranges in fear of property values zooming sky high.  The market cooled after the third quarter peak in 2008 and remained cool during the first quarter of 2009 causing the seller’s market to weakened into balanced market by the end of 2008.

Prices, however, remain quite stable even during our current cooling market conditions. According to Stats Canada, new housing prices in the capital city area increased by 0.4 per cent in March compared to February.

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Newfoundland Real Estate Stats for April

May 3, 2009 · Filed Under Market Trends, Monthly MLS Stats, Real Estate Articles and St. John's Real Estate · Comment 

Active MLS Listings have increased this month compared to March NLAR stats, while home sales have remained fairly constant.  The biggest increase in stats was Expired Listings.  Up a whopping 39% since last year.  What does this mean to the St. John’s Real Estate Market?  Houses are staying on the market longer.  Potential for price reductions.  It appears to be slipping into a buyers market now.  However, there are still houses selling the same day and some still seeing multiple offers.

The average price for a home in St. John’s edged slightly higher again for another month (currently at $206,938 for a 12 month period).

Mortgage rates are still at all time lows. The Bank of Canada’s Prime lending rate is at 2.25% and supposed to hold steady here til 2010.  Great for varible rate mortgages but it might be the time to look into a fixed term as the rates can only go up from here.

Total # of MLS Listings [Apr] = 975

Total # of Sales [Apr] = 288

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2953

Here is a break down by area for the month of April

St. John’s Real Estate: Listings = 181  Sales = 66 Sales/Listings Ratio = 36%

Average Sale Price: $214,590 for the month of April

Mount Pearl Real Estate: Listings = 24 Sales = 10  Sales/Listings Ratio = 42%

Average Sale Price: $198,655

Paradise Real Estate: Listings =65 Sales = 22 Sales/Listings Ratio =34%

Average Sale Price: $239,039

East Extern Real Estate: Listings = 45 Sales = 18   Sales/Listings Ratio = 40%

Average Sale Price: $231,872

Conception Bay South Real Estate: Listings = 56   Sales = 15  Sales/Listings Ratio = 27%

Average Sale Price: $202,399

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Newfoundland Real Estate Stats for January

February 4, 2009 · Filed Under Market Trends, Monthly MLS Stats and St. John's Real Estate · 2 Comments 

After coming to a dramatic slowdown in December from a banner 25% price increase year, 2009 is back in full swing.  Although sales are down (25% compared to last January), much needed listings are up (5%).  Officially we are into a balanced market now.  Increased inventory, record low mortgage rates and what appears to be still a lot of buyers, the real estate market in St. John’s should hold its own compared to the rest of Canada.

This month, Newfoundland’s Real Estate MLS housing price break down is showing a 25% decrease in sales while there are currently 680 listings, an increase of 5% from last year.  Majority of the sales showing were in the $200,000 to $350,000 price bracket.

Total # of New MLS Listings [Jan] = 680

Total # of Sales [Jan] = 200

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2289

The average price of a home in the St. John’s Real Estate market is now $198,757  2008.  Compared to the provincial average of $184,055 YTD for 2009.  Note this is for ALL Newfoundland (nlar.ca)

Here is a break down by area for the month of January

St. John’s Real Estate: Listings = 117  Sales = 48 Sales/Listings Ratio = 41%

Average Sale Price: $219,146 for the month of January

Mount Pearl Real Estate: Listings = 11 Sales = 6  Sales/Listings Ratio = 55%

Average Sale Price: $208,667

Paradise Real Estate: Listings =52 Sales = 14 Sales/Listings Ratio =27%

Average Sale Price: $264,325

East Extern Real Estate: Listings = 32 Sales = 16   Sales/Listings Ratio = 50%

Average Sale Price: $229,048

Conception Bay Real Estate: Listings = 41   Sales = 17  Sales/Listings Ratio = 41%

Average Sale Price: $192,321

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St. John’s Real Estate Market Overview - Kirkland Balsom & Associates

January 22, 2009 · Filed Under Market Trends, St. John's Investments and St. John's Real Estate · Comment 

Once again Kirkland Balsom & Associates have released their Real Estate Market Overview 2009.  (View the  Real Estate Market Overview 2008 edition)

Some of the highlights of the report are:

  • Great news for people with investment properties and rentals - “Increased economic activity and job opportunities throughout 2008 have pushed residential apartment vacancy rates to less than 1 percent.  Rental rates increased an average of 5 percent; however, remain below levels sufficient to warrant new construction.  With no significant supply entering the market in over 25 years further rent increases are imminent.”
  • In referring to 2 - 6 unit properties - “Prices continue to strengthen with much of the activity driven by out-of province investors anticipating growth from enhanced employment and economic spin-off. This trend is expected to continue through 2009.”
  • “There is an increasing trend towards investors purchasing older apartment buildings and converting them to condominiums.  Higher priced condominiums are expected to grow in demand with the aging population in the greater St. John’s region.”
  • Water taxes in St. John’s will increase by $80 per unit in 2009 to a rate of $520 per year.

An interesting point they mention is to have the assessed value of your home reviewed.  With the big jumps in prices last year and the upcoming assessment for property tax for 2010, tax payers can expect to pay more property taxes.

The key questions to ask are as follows:

  1. Is the value assigned to my property above market value as of January 1, 2008?
  2. Is the value assigned fair when compared to similar properties?

Very important especially in the market we saw last year.  I know I will be paying particularly close attention to mine.  Remember, you only have 30 days to appeal when you receive your assessment.  Make sure you call Kirkland Balsom & Associates and have your assessment reviewed.

Read the entire Real Estate Market Overview 2009 Report here

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St. John’s MLS prices surged 27% in Q4 2008

January 21, 2009 · Filed Under CMHC Reports, Market Trends and St. John's Real Estate · Comment 

st. john's sellers market weakenedThe St. John’s Newfoundland MLS listings numbers where  down for the 4th quarter of 2008.  However there was a noticeable increase in price. MLS sales fell 9% to 1,203 units compared to 2007’s record fourth quarter sales of 1,326 units.  The average St. John’s MLS price surged 27% to $193,529 compared to $152,160 during the fourth quarter of 2007, representing the only growth market in Canada.  October, November and December MLS  sales were 549, 373 and 281, respectively.

st. john's fourth quarter average price

The Sellers market we saw for most of 2008 weakened during the 4th quarter, bringing us back into a balanced real estate market.  Sales to active listings ratio fell to 21% in December, but averaged 26% during Q4 versus 21% the fourth quarter of 2007.  New MLS listings increased 11% in the fourth quarter and when combined with the 9% decline in sales, total active listings began to stabilize. There were 1,463 new residential listings during the fourth quarter compared to 1,320 during Q4 of 2007, an increase of 11%. Active listings averaged 1,528 from October to December 2008 versus 2,067 during the fourth quarter of last year.

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St. John’s Area Housing Starts Post Solid Growth in December

January 13, 2009 · Filed Under CMHC Reports, Market Trends and St. John's Real Estate · 1 Comment 

News release from Canadian Mortgage and Housing Corporation

Urban housing starts posted solid growth during the month of December, according to preliminary data1 released today by Canada Mortgage
and Housing Corporation (CMHC). December’s total housing starts posted 55 per cent growth, with 202 starts recorded throughout the St. John’s area versus 130 in December of 2007. An additional 24 housing starts were recorded in other urban areas across the province for a total of 226 provincial starts, an increase of 44 per cent. For the year, urban housing starts totaled 2,229 throughout the province, up 22 per cent. Within the St. John’s region, starts reached a 33-year high of 1,863 in 2008, a 26 per cent gain over the 1,480 starts posted in 2007.

“Urban housing starts ended the year with considerable growth and were consistent with CMHC’s new home construction expectations for 2008,” said Chris Janes, Senior Market Analyst with CMHC in Newfoundland and Labrador. “Residential construction activity within the St. John’s metro area reached a 33-year high in 2008, with solid economic and demographic fundamentals creating unprecedented buyer demand and price growth throughout the year,” added Janes. For Canada’s urban centres, total housing starts decreased six per cent with 10,487 recorded in December compared to 11,157 during December of 2007. Single-detached starts fell 29 per cent to 4,335, while multiple starts of 6,152 represent a 22 per cent increase from a year ago. Throughout Atlantic Canada, there were 574 urban housing starts posted versus 651 the previous December, a decline of 12 per cent.

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Canadian Real Estate Outlook for 2009

January 6, 2009 · Filed Under Market Trends and Real Estate Canada · 1 Comment 

Business News Network (bnn.ca) had an interview this morning with Phil Soper, President and CEO of Royal Lepage Real Estate Services discussing the Canadian Real Estate Outlook for 2009.

Historically low interest rates, stable local economies and increasing affordability should support Canada’s residential real estate market during transitioning period.

He stressed that we will see a correction in 2009 and not a crash like we are seeing in the US.  Nationally the real estate market peaked in the 4th quarter of 2007 so we are 4 quarters into the “correction” already.

His prediction is a 3% decrease nationally with higher decreases in the bigger cities such as Toronto and Vancouver which will see 4% and 9% declines respectively. Halifax is expected to remain relatively flat with a 1% gain. (Side note: the St. John’s real estate market was not mentioned)

He basically went on to say that the first quarter will be a difficult quarter but will recover in the second half of ‘09.  I feel that this will be the trend with the Newfoundland market as well.

Mortgage rates are still at all time lows and he pointed out that most buyers are not overly concerned with the “sticker price” on a property but are more concerned with the monthly mortgage payments.

Read the full press release Correction, not crash for Canadian real estate market in 2009; Average house prices forecast to fall 3.0 per cent

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