Demand for housing in St. John’s remains healthy, particularly among first time buyers, despite a decline in year-to-date sales.  Buyer’s market conditions and the best choice of product in years have buoyed the entry-level segment, along with wage gains, economic growth and rising consumer confidence levels. Affordability continues to be  favourable, with increased earnings offsetting the more moderate price growth of late.  Most young home buyers are now active from $200,000 to $250,000.  Those buying new construction will have to ante up more—typically between $230,000 and $280,000 to start—as the  price of new construction has risen at a greater rate.  Those on a tight budget will find that homes listed below $200,000 are few and far between and tend to sell for close to full price, if listed at fair market value.  Some even generate a rare multiple offer.

To illustrate the supply issue, only 34 homes have sold year-to-date under $175,000, accounting for just 10 per cent of all sales, and only 39 listings under that price point are currently available. Given that, buyers at the lowest end of the price spectrum will have to act more quickly.  The housing mix in St. John’s continues to favour the single detached home, particularly in the first-time buyer segment.

Of the 34 homes sold under $175,000, only three were condominiums. Entry-level condominium product remains limited in St. John’s, as builders continue to focus on the mid-range—units priced between $250,000 and $350,000. While condominiums are gaining traction with younger buyers, they remain only a small portion of entry-level sales. Condominiums now start from $165,000 to $175,000 for an  older, 650 to 750 sq. ft. walk-up unit on Thorburn Rd., Dalton Ave., and in Pleasantville.

With the current oversupply of homes listed for sale in St. John’s, buyers remain in the driver’s seat. That, along with historically low interest rates, continues to serve as a significant  impetus.

Detached homes can be found from $169,000 for an older bungalow requiring work, located on the peripherals. Older homes are most popular. Most sought-after are properties priced between $210,000 and $250,000 in established neighbourhoods such as Cowan Heights, Mount Pearl and Paradise. Most buyers are realizing their choice location, with little need to compromise.  Those that must choose are opting to spend a little more, if necessary.

Solid demand among first-time purchasers is expected to carry over in to the spring market, with new financing criteria expected to have little impact. In fact, look to sales in the entry-level segment to prompt greater activity in the move-up range in the months ahead. February year-to-date sales were 11 per cent off year-ago levels, with 359 sales recorded, while average price continued its ascent at $255,512, up just over five per cent.

Full RE/MAX Media Release for the First Time Buyers Report 2011

As home sellers in St. John’s real estate market adjust to increasingly competitive market conditions, RE/MAX has launched Fit To Sell, a timely program designed to secure a quick sale for top dollar.

“In the past two months, hundreds of homes have been listed for sale, but only 40 per cent have sold,” explains Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “This innovative new program encourages existing homeowners to increase their stake in the home-selling process by working with their real estate professional to maximize their homes’ potential.”

The launch of Fit To Sell coincides with the opening of the St. John’s Home Show, scheduled for April 30 through to May 3, at the Mile One Centre. RE/MAX will be presenting its Fit To Sell tips, developed with the help of popular staging expert Carla, host of the DVD series ‘How to Stage your own Home’ and owner of Nex-Step Design, at the event.

“We know that location, price, and condition are the three major factors that come into play when selling a home – and while location and price are clearly choices made by the buyer at the onset, condition is the one factor that a seller can influence,” says Polzler. “Sellers who make the right decision in preparing their home for sale can significantly improve their bottom line.”

Check out the Fit to Sell website www.fittosell.ca for a comprehensive package of videos and checklists to get top dollar for your St. John’s home.

Be sure to fill out your online ticket for a chance to win a $25,000 Viking Kitchen through the RE/MAX Ultimate Viking Kitchen Contest.

The stats have been tallied and once again RE/MAX is leading the way in market share for St. John’s and surrounding areas.  Over 40% of the real estate business in St. John’s is being transacted with RE/MAX Realtors and the RE/MAX branding.

As reported back in July for the first two quarters in 2008 for  St. John’s real estate market update, RE/MAX has been consistantly hovering near 40%.  In fact for over 5 years I’ve seen RE/MAX going from the mid thirties and up.

Breast cancer affects Canadians from coast to coast.  On Sunday, October 5, 2008, unite with all Canadians in the Canadian Breast Cancer Foundation CIBC Run for the Cure. Once again Team Remax is involved with helping to fundraise for this great event.

The Run was created in 1992 by a small group of volunteers who wanted to raise awareness and funds for the cause. The first event took place in Toronto. Over 1,500 participants raised $85,000 – an outstanding success!  Through the ongoing dedication of our volunteers, this single Run event grew into what it is today … Canada’s largest single-day, volunteer-led fundraising event dedicated to breast cancer research, education and awareness.

In 2007, 53 communities and 170,000 Canadians participated in the Canadian Breast Cancer Foundation CIBC Run for the Cure. Together, we raised more than $27 million for breast cancer research, education, and awareness programs. What an incredible success!

This year I’ve decided to take a more active roll. I am participating in the Canadian Breast Cancer Foundation CIBC Run for the Cure, on Sunday, October 5th and I am asking for your support for a cause that is very important to me.

]]> http://www.stjohnsrealestateonline.com/team-remax-cibc-run-for-the-cure/feed/ 1 http://www.stjohnsrealestateonline.com/newfoundland-real-estate-market-share/ http://www.stjohnsrealestateonline.com/newfoundland-real-estate-market-share/#comments Wed, 23 Jul 2008 12:46:31 +0000 Stephen Winters http://www.stjohnsrealestateonline.com/?p=207

RE/MAX is once again top of the leader board for real estate market share in St. John’s and surrounding areas. Boasting slighty over 40% over all other competitors for the first half of 2008.

New laws that kick in today will trigger major changes to real-estate transactions, as part of federal efforts to battle money laundering.

Under the new regulations, Realtors will have to collect personal information from property sellers and buyers, such as their name, address, date of birth and occupation, backed up by identification such as a driver’s licence or passport.

When dealing with foreign buyers, agents in Canada will now have to hire local agents who can vouch for the identity of the buyer.

The agents will be required to hang onto that information for five years and have it available for the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC), if needed. Otherwise, the information will remain confidential.

The centre was established by the federal government in an effort to track suspicious property deals and prevent shady buyers from dumping large amounts of cash into property purchases.

Bill C-25, which was passed in 2007, demands several industries do their part to help put a stop to terrorist financing and money laundering.

It is estimated that nearly 63 per cent of money laundering is done through real estate.

ReMax reported having $2.6 billion in sales in 2007 in 67,000 transactions.

“Real estate agents have had legal obligations under the federal government’s push to prevent criminal activity and terrorism since 2001,” says Calvin Lindberg, president of The Canadian Real Estate Association. “In the first phase of compliance, real estate agents were required to report only suspicious transactions, or transactions involving more than $10,000 in cash,” he said in a news release issued Monday.

Now, real estate agents have to complete a report on the receipts of all funds received during the transaction, not just for $10,000 or more.

If an agent is dealing with the corporation, they must collect corporate documentation and the names of the corporation’s directors.

In cases where only one of the parties involved in the transaction is represented by the agent, identification must still be collected.

“Those buying or selling privately will be asked by the agent representing the other party involved in the transaction to provide proof of identity as well, and that record must be kept by the real estate agent involved in the transaction,” the news release said.

Bob Linney, CREA spokesperson, said there are also ways to keep track of buyers and sellers who choose to complete the transaction without the help of an agent.

“Sales involving private sellers only are not covered by the real estate regulations,” he told CTV.ca. “FINTRAC assumes they will be captured by regulations governing the banking industry now, and in addition by the legal profession when their compliance requirements kick in later.”

The new regulations will be non-negotiable and buyers who are unable or unwilling to provide the required information will not be able to complete property purchases. Additionally, the agent would be required to walk away from the deal or report the buyer to FINTRAC.

In Ontario alone, 47,000 realtors will be subject to the new rules.

Over the next six months, the government will perform random spot checks on real estate transactions. But once that window closes, agents will face fines, or even jail time, if they fail to comply with the regulations.

The new requirements for realtors are part of regulatory changes that Finance Minister Jim Flaherty announced in December of last year to strengthen Canada’s anti-money laundering and anti-terrorist financing regulations.

“The new regulations bring Canada’s anti-money laundering and anti-terrorist financing regime in line with the international standards set by the Financial Action Task Force, a G8 created body,” states a news release from FINTRAC.

It was another very successful Janeway Children’s Miracle Network Telethon this year with the final total coming in at over 2.3 million dollars fetching a new record in donations.

As I mentioned in a previous post, RE/MAX offices in St. John’s were answering phones and volunteering for the Janeway Telethon. RE/MAX believes in giving back to the community and in doing so we donate a portion of each home sale to the Janeway.

This year RE/MAX presented a cheque during the Telethon for a total of $53,938.

This weekend (May 31 and June 1) the Janeway Children’s Hospital Foundation is holding the 24th Annual Janeway Children’s Miracle Network Telethon. This year’s theme The Heroes Among Us highlights the patients, the physicians and the medical staff of the Janeway Children’s Health and Rehabilitation Centre and the men and women who work so hard to support our province’s only hospital dedicated entirely to pediatric health care.

On Sunday, June 1 RE/MAX offices in St. John’s will be answering phones and volunteering for the Telethon. As well, each year we provide a donation check to this wonderful cause. RE/MAX believes in giving back to the community and in doing so we donate a portion of each home sale to the Janeway.

Since 1992 RE/MAX Sales Associates have raised in excess of $50 million for CMN, $21 million of that in Canada alone, in contributions through RE/MAX’s Miracle Program in Canada.

Together we can make miracles happen for children in your neighbourhood. Please donate this weekend.

Alberta’s red-hot economy is fueling demand for residential real estate in Nova Scotia, PEI, New Brunswick, and Newfoundland this year, according to a report released today by RE/MAX Ontario-Atlantic Canada.

“Strong economic performance in Western Canada continues to spillover into other parts of the country,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “A serious influx of Western Canadian purchasers has bolstered housing sales in every Atlantic province. Tremendous job opportunities available in Alberta that allow commuting to and from the East Coast have served to further strengthen home-buying activity in the region. Last, but certainly not least, after living in Western Canada for many years, more and more Maritimers are returning home.”

Newfoundland-Labrador (St. John’s, Corner Brook, Grand Falls) currently leads the region overall in terms of percentage increases in both unit sales and average price, with the number of homes sold up close to 18 per cent year-to-date and average price up almost 15 per cent, compared to the same period one year ago. Two thousand and seven was the first and only year since Newfoundland joined Confederation in 1949 that the province led the country in economic performance. GDP growth soared to 13.4 per cent due to mining and oil development, according to Statistics Canada.

“Housing performance in Newfoundland has been nothing short of remarkable,” says Polzler. “There are $10 billion in capital works projects on the table and the pressure in the real estate market is only starting to build. By year-end 2008, housing sales and values are expected to climb by double-digits, leading not only the region, but the country, in terms of percentage increase.”