So tomorrow is the big day in St. John’s….the 193rd Regatta Day. The Royal St. John’s Regatta is North America‘s oldest annual sporting event dating back to 1816. If weather isn’t suitable the event is postponed until the next suitable day.  Since Regatta Day is a civic holiday in St. John’s, this means that the weather actually determines whether or not workers have the day off – a matter sometimes complicated by late-night partying associated with the end of the George Street Festival the night before. (Locally known as Regatta Roulette)

Decided to drive downtown St. John’s this morning and swing up to Signal Hill and head back to my office via Quidi Vidi Lake.  Randomly taking photos as I went. There are a great number of people out today.  Most with camera’s so I can only assume tourist’s.  Even as I drove up the road to Signal Hill the place was packed with people.  Nothing to see up there though as the fog has it completely engulfed.  No ocean view that’s for sure.

Tomorrow Quidi Vidi Lake will be surrounded with tens of thousands of people.  Each visiting “the pond” for their own personal reasons.  Whether it be family tradition, curious spectators, visiting tourists, family/friends of the rowers or just to head down for a game of chance at the concession booths – none will be disappointed.

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.

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%

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.

Just listed 564 Newfoundland Drive. (MLS # 143103).  Great income property located next to Portugal Cove Road and Newfoundland Drive, near Marine Institute, CONA and MUN. Spacious main floor with 4 bedrooms plus a 2 bedroom in-law apartment with seperate entrance. Main floor has oak kitchen, large living room / dining room area and master bedroom with ensuite.  In-law apartment has a nice oak eat-in kitchen, spacious living room with patio door to backyard deck.  Laundry facilities in each unit. Asking price is $232,900. Call Fraser or Stephen Winters for more information.

Check out the virtual tour of 564 Newfoundland Drive.

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.

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.”

VOCM.COM reports that Newfoundland is leading the way in consumer confidence.

This province has been bucking the trend in consumer confidence. In fact, a researcher says consumer confidence in Newfoundland and Labrador is possibly the highest in the western world. Corporate Research Associates CEO Don Mills says it will take a lot to shake that.  Mills says this province leads the country in consumer confidence and continues to enjoy a high level of satisfaction with government. He says we’re in a unique situation, as the rest of the country deals with layoffs and downsizing.  He says if there are a lot of people coming back from Alberta, it could make a difference. Mills says CRA will be going back into the field for research next month. Finance Minister Jerome Kennedy says the continued confidence will help the province pull through.

Read full news article here

Although it’s the middle of September and the temperature is quite comfortable, winter will soon be here.  Fall is normally the time of year to start inside home renovations, particularly basement renovations. By making a few changes, you can create a cozy space to spend time with guests during the holidays. By adding insulation to your exterior walls, installing a sub floor, you’ll notice some big changes in both your heat bills and the condition of your property.  I personally insulated my basement last year before the winter arrived and notice a huge change.

These tips are curiosity of the Home Depot.

• Turn up the heat

Basements are the coldest areas in the home, yet with the potential of becoming the most inviting.  A fireplace will instantly add warmth to this cool area, providing direct heat into the room. There are several different styles available ranging in price range and total square footage it covers.

• If these walls could talk

New paint on walls is like an instant facelift for your basement. Painting is an effective and quick way to change the look and feel of the room – making it a more inviting place to spend time. There are also several different styles of wallpaper available at The Home Depot that will help give your basement a fresh and updated look.

• Walk this way

Keep your toes warm and toasty by installing subflooring on top of the cold basement floor. Once installed, cover it with carpet, wood, laminate or tile – whatever suits your style.

• Let there be light

Many basements have little or no available natural light, which can make the room gloomy.  Consider installing pot lights or track lighting across the ceiling.  These types of light fixtures will instantly brighten the room by giving it a warm glow.

Credit: www.newscanada.com