For the St. John’s real estate market, starts for the first quarter of 2013 were 176. 133 of which was single detached. Total starts declined 38.7% with only a 6.3% decline for single detached.The average MLS price for a home in the St. John’s Real Estate Market was $309,551 for the first quarter of this year. This is an increase of 4.3% from last year’s first quarter. MLS sales have decreased by 34.1% comparing the two quarters.
Below are some snippets from CMHC’s Housing Market Outlook – Atlantic Region
- Housing starts in Atlantic Canada increased close to 33 per cent in the first quarter as a result of a significant rise in multiple starts. Single starts were down close to 24 per cent.
- Three of the four Atlantic provinces increased starts. Newfoundland was the lone decliner of new home starts
- Residential home starts declined 26% for Newfoundland
- Housing starts in Atlantic Canada are expected to fall about 11% for 2013 and a further 6% for 2014
- Multiple starts to fall 17% for 2013 and 12% for 2014 for the Atlantic provinces
- MLS® prices in the first quarter of 2013 were up close to three per cent. The full-year forecast for 2013 is for an increase of two per cent with a further 2.3 per cent rise expected in 2014.
- Sale were down close to 13% for the first quarter 2013
- Newfoundland will have the best economic performance in Atlantic Canada in 2013 and 2014 in terms of GDP growth. 2.5% for 2013 and 1.5% growth in 2014.
51 new developments slated for the St. John’s Mount Pearl Area means 51 new reasons to invest in St. John’s Real Estate
There are approximately 51 major developments that could take place in St. John’s this year. Of these developments, Pleasantville appears to be the hottest topic (as well as the largest development) A new Canadian Forces Base as well as 975 residential spaces. I have received a number of calls in the past few months on this new subdivision already. This will be the hot spot for East End St. John’s homes for sure.
The old Woolworth building is slated to become an office tower/parking garage.
An $18million dollar hotel is to be built at the corner of Prescott and Water Street.
A $15million dollar hotel/condo building is being built on Temperance Street.
The old Arcade building on Water Street as well as the old CBC building are aimed to be converted to office buildings and condos.
On Tiffany Lane in the East End of St John’s a new $10million dollar condo development will be built.
In the West End of St. John’s a new $8million dollar seniors condominium complex will be built as well as another in the Center of the City on Blackmarsh Road.
A 200 home project is expected to get underway off Ruby Line and Heavy Tree Road in Mount Pearl.
Lots of new Box Stores being constructed up on Stavanger Drive Area. (Best Buy, Kesleys, a new RONA building, a new Canadian Tire building) as well as new ones on Kesley Drive near Kenmount Terrace.
Things are certainly booming here in St. John’s. Good times, prosperous times are ahead for Newfoundlanders.
With only a small rise in inventory in 2010, the growth in prices in the existing home market was higher than expected (approx 15% since 2009). For 2011, average house prices are forecast to increase across Atlantic Canada from a high of close to four per cent in Newfoundland and Labrador (NL), three per cent in Nova Scotia (NS) and close to one per cent in New Brunswick (NB). Prices in Prince Edward Island (PEI) are expected to rise less than one per cent in 2011. Existing home sales are expected to decline modestly.
Sales declines will vary across Atlantic Canada from one per cent in NS, close to four per cent in NB and NL and nearly eight per cent in PEI.
Although the economic forecast remains positive, recent concerns regarding the global outlook have tempered the possibility of stronger growth in 2011.
For Newfoundland and Labrador, energy and mining development will continue to be the main source of future growth. Several major capital projects will continue to inject stimulus into the local economy and contribute to a positive outlook.
Growth in commodity prices has also provided a lift to mining companies in the interior of the province. Stronger income growth compared to the other three Atlantic provinces has also helped support the level of consumer spending, as well as the stronger than expected level of housing activity. The fishing industry will continue to pose a challenge for Newfoundland’s rural economies, but population losses will moderate over the forecast period due to improving economic conditions in St. John’s. Natural declines in offshore oil production will restrain GDP growth, although increased royalties received by the province will offset the effects of production declines on economic growth overall.
Economic Performance 2009
- Real GDP declined 8.9%.
- Employment fell by 2.5% and the unemployment rate increased to 15.5%.
- Retail sales grew by 2.6% – the strongest performance in the country, with Newfoundland and Labrador being one of only two provinces to record sales growth.
- Labour income increased by 4.2% – the second best performance among provinces.
- Housing starts of 3,057; the second highest in 20 years.
- Capital investment growth ranked fourth among provinces.
- Personal income growth of 3.9% and disposable income growth of 4.7%.
- Population of 508,925 as of July 1, 2009, an increase of 0.5% and the largest percentage increase since 1983.
- Non-resident travel and tourism visitors increased 0.7% to 483,200 with expenditure growth of 1.4% to $375 million.
- 2010 Economic Outlook
- Real GDP forecast growth of 4.0%.
- Employment growth of 2.3% to 219,900.
- Unemployment rate forecast to decline 0.6 percentage points to 14.9%.
- Personal income and disposable income growth of 3.9% and 3.3% respectively, aided by wage gains and employment growth.
- Retail sales growth of 5.0%.
- Increase in population of 0.5% due to positive net migration.
- Capital investment expected to increase by 23.0% to $6.2 billion.
- Housing starts expected to increase 1.5% to 3,102. Residential construction spending of $1.6 billion, an increase of 3.5%.
- Value of mineral shipments expected to increase about 60%, to $3.1 billion.
- Total overnight tourist visits expected to increase by 1.3%.
2010 Investments in Infrastructure
Funding for the Conception Bay South Bypass extension, Team Gushue Highway extension and completion of the Torbay Bypass;
2010 Investments in Diversification
More than $126 million in funding for initiatives under the Departments of Finance, Business and Innovation, Trade and Rural Development including:
- $61 million in tax credits and incentives;
- $11 million in the Regional/Sectoral Diversification Fund;
- $2 million in the Aerospace and Defence Development Fund;
- $1 million for the Innovation Enhancement Fund plus $1 million in the Commercialization Fund, both under the Innovation Strategy;
- $1 million in the Oil and Gas Manufacturing and Services Export Development Fund as part of a two-year $3 million commitment;
- $4.9 million under the five-year Oceans of Opportunity Strategy to advance the ocean technology sector; and
- Other programs including the Small and Medium-sized Enterprise Fund, the Business Attraction Fund, and the Business and Market Development Program.
Newfoundland’s population has increased according to Statistic’s Canada. The population has grown by 2,484 over the past year to 508,925. This increase might not seem like a big number, but Newfoundlander’s are accustomed to a decline in population year over year.
From April to June 2009, Newfoundland and Labrador’s population climbed 0.28%, the highest second-quarter growth rate since 1983. In contrast to the other Atlantic provinces, the increase was mostly attributable to a net gain in interprovincial migration. It was also the fourth consecutive quarter in which Newfoundland and Labrador has posted gains in its exchanges with the other provinces and territories.
On July 1, 2009, Canada’s population was estimated at 33,739,900. In the second quarter of 2009, Canada’s population grew by 121,200 (+0.36%)
Alberta was the Western province with the fastest demographic growth rate from April to June 2009, at 0.59%.
From April to June, Prince Edward Island had the fastest demographic growth rate in the Atlantic provinces at 0.53%
Oil is the talk of the province once again in Newfoundland. This morning news reports can be read throughout the internet outlining the tenative agreement expanding the Hibernia Oil field. Newfoundland Labrador will have a 10% stake (through crown owned Nalcor Energy) in the Hibernia South expansion. Great news as oil is currently hovering over $71 a barrel. Premier Williams made the accouncement this morning during the Newfoundland & Labrador Oil and Gas Industires Association (NOIA) conference in St. John’s.
What effect do you think this has for real estate in St. John’s?
Complete news articles can be found below
VOCM.com – Big Day for Oil Patch
Globeandmail.com – Newfoundland gives Hibernia New Life
Thetelegram.com -Hibernia South worth $10 billion to the province: Premier