Continued employment growth and a low interest rate environment in the quarter contributed to a marginal improvement in housing activity during the first quarter of 2012. New home construction and MLS® residential sales activity both increased compared to the first quarter of 2011. In terms of average house prices, growth continued in both the new and existing home markets. Overall, a strong local economy continued to support the St. John’s area housing market during the first three months of 2012.

Increased New Home Construction Activity

New home construction activity increased over last year throughout the St. John’s area during the first quarter and average prices advanced. Total housing starts were 287 versus 241 in 2011’s first quarter. There were only 142 single-detached starts, however, compared to 173 last year. This decline was offset by a sizeable increase in multiple starts, with 145 recorded during the first quarter compared to 68 a year ago. The multiple starts segment was led by 71 apartment condo starts and 64 apartment (basement) starts.  St. John’s real estate market had 164 starts versus 91 in 2011’s first quarter. Starts in Paradise increased 40 per cent, with 67 units versus 48 a year ago. Mount Pearl had ten housing starts compared to 20 during 2011’s first quarter; Conception Bay South (CBS) recorded 29 starts compared to 43 a year ago, for a decrease of 33 per cent; while housing starts in Torbay were down 77 per cent with three recorded compared to 13 during 2011’s first quarter.

The overall average new house price for the St. John’s real estate market was $354,438, an increase of 3.6 per cent compared to $342,113 recorded during the first quarter of 2011. Led by larger custom built homes, the average sale price was highest in Torbay at $425,751, up nine per cent. CBS posted an average new house price of $321,391 during the quarter, up 13 per cent; Paradise saw seven per cent decline to $338,745; Mount Pearl increased 13 per cent, with an average price of $304,574; St. John’s City posted an eight per cent increase to $374,473; while the remainder of the CMA decreased 1.6 per cent to $347,836.

MLS® Residential Market

There was a broader range of homes to choose from, with inventory up seven per cent in the first three months of the year. Listings remained on the market for an average of 73 days and average prices continued to show gains, with offers at approximately 98 per cent of asking price. For the St. John’s area, there were 1,664 new residential listings compared to 1,518 during the same period last year. Active listings averaged 1,622 this year versus 1,516 during the first quarter of 2011. The sales-to-active listings ratio indicated that 13 per cent of listings sold during the quarter compared to a similar
13.4 per cent during the same time last year.

MLS® Sales and Prices Increased

There was growth in both MLS® residential sales and prices during the first quarter. The number of MLS® sales increased 3.4 cent to 635 sales compared to 2011’s first quarter total of 614 units. The average MLS® residential price in the St. John’s CMA was 7.4 per cent higher than it was a year ago, at a record $277,698 compared to $258,668 during the first quarter of 2011. The average price continued to be supported by demand driven by local economic and demographic conditions.

Total # of Sales [April] = 308

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 3832

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

St. John’s Real Estate: Listings = 189 Sales = 70 Sales/Listings Ratio = 37%
Average sale price for a home in St. John’s: $316,432 for the month of April and the 12 month average $299,129

Mount Pearl Real Estate: Listings = 31 Sales = 14 Sales/Listings Ratio = 53%
Average Sale Price (12 month average): $255,155

Paradise Real Estate: Listings =80 Sales = 28 Sales/Listings Ratio =46%
Average Sale Price (12 month average): $324,631

East Extern Real Estate: Listings = 48 Sales = 20 Sales/Listings Ratio = 32%
Average Sale Price (12 month average): $330,133

Conception Bay South Real Estate: Listings = 53 Sales = 18 Sales/Listings Ratio = 35%
Average Sale Price (12 month average): $280,714

Don’t forget to contact us for a free market evaluation on your home.

• MLS® residential sales increased 3.4% to 635 compared to 2011’s first quarter sales of 614
• January, February and March MLS® sales were 197, 207 and 231, respectively
• First quarter average MLS® house price climbed 7.4% to $277,698 compared to $258,668 during the first quarter of 2011

Buyers’ Market Conditions

• There were 1,664 new residential listings during the first quarter compared to 1,518 during the same period in 2011, an increase of 9.6%
• Monthly active listings, or inventory, averaged 1,622 versus 1,516 during 2011’s first quarter
• The sales-to-active listings ratio indicated buyers’ market conditions with 12.5% of listings selling in January and February; 14.2% in March and averaged 13% during the quarter versus a slightly better  13.4% in the first quarter of 2011

 Active Listings Higher

• Active residential listings, or inventory, increased 7% during the first quarter compared to a much higher 38% increase a year ago
• Active listings for January, February and March were 1,579, 1,656 and 1,631, respectively
• The higher rise in inventory relative to the 3.4% sales increase, resulted in buyers’ market conditions during the entire first quarter

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Tickets can be purchased at the door and are $5 and $4 for students and seniors.

Single-detached and multiple unit construction activity were mixed throughout the St. John’s area in March. Multiple starts caused the overall decline, with 16 units recorded versus 42 a year ago, while single-detached starts were flat with 41 units recorded. “While multiple starts declined, solid economic and demographic fundamentals continued to support the local housing market during March,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador.

In urban centres across Canada, total housing starts recorded in March were up 18 per cent to 13,761 units compared to 11,655 a year ago. Single-detached starts increased 11 per cent to 4,030 units, while multiple starts increased 21 per cent to 9,731 units in March. In the Atlantic region, 333 new units were started compared to 271 during March 2011.

The full press release can be found here.

So does that mean you should replace your windows?

That depends on a number of factors. Window replacement can be an expensive renovation. Here are a few things to consider before making your decision.

• Do your windows get frost or condensation build-up on the interior side? This could be a sign that the windows are not keeping out the cold as well as they should.
• Do you see water infiltration or mildew on the interior sides of any of the window sills? This means that moisture is creeping in from the outside, and you need to get those windows repaired or replaced as soon as possible.
• If your windows are double-paned – (two panes of glass) – check for any signs of moisture in between the glass panes. Moisture indicates that the thermal seal is broken and at a minimum, the glass will need to be replaced.
• Take a look at your windows from the outside. Is the trim rotted or cracked anywhere? Are there dark spots or any signs of rotting on the wood frames? Repairs or replacement may be required.
• Check the operation of your windows. Do they open and close easily? This is important because some windows, such as those in bedrooms, are often designed to be big enough to use as an exit in case of a fire.
• Finally, are you happy with how your windows look? Do you feel that your property will look significantly better with new windows?

Although they are expensive, replacing windows has a lot of advantages. Depending on the efficiency of your current windows, replacing them could cut your energy costs by 10-20%. In addition, new windows block out more exterior noise, making your home quieter.

Want more tips on increasing the value, and enjoyment, of your property? Call Fraser or Stephen Winters today.

Total # of Sales [March] = 302

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 3395

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

St. John’s Real Estate: Listings = 156   Sales = 77 Sales/Listings Ratio = 49%

Average sale price for a home in St. John’s: $312,780 for the month of March and the 12 month average $296,973

Mount Pearl Real Estate: Listings = 28 Sales = 11  Sales/Listings Ratio = 39%
Average Sale Price (12 month average): $256,629

Paradise Real Estate: Listings =46 Sales = 26 Sales/Listings Ratio =57%
Average Sale Price (12 month average): $325,125

East Extern Real Estate: Listings = 32 Sales = 11  Sales/Listings Ratio = 34%
Average Sale Price (12 month average): $325,221

Conception Bay South Real Estate: Listings = 42   Sales = 15  Sales/Listings Ratio = 36%
Average Sale Price (12 month average): $281,343

Don’t forget to contact us for a free market evaluation on your home.

The MLS® Home Price Index, the leading measure of Canadian home prices, continued rising in February 2012, according to statistics released today by The Canadian Real Estate Association (CREA). Year-over-year comparisons continued shrinking, providing further evidence that Canadian home price growth may be topping out.

 Highlights:

•        The Aggregate Composite MLS® Home Price Index in February 2012 was up 5.1% from its year-ago level, the smallest increase since June 2011.

•        Toronto posted the largest increase (7.3%), but momentum continued fading. Price increases also moderated further in Calgary (2.5%) and Montreal (1.6%).

•        Gains decelerated in all housing categories tracked except 2-storey single family homes.

•        The Aggregate Composite MLS® Home Price Index rose 1.1% on a month-over-month basis in February 2012.

•        Prices were up most for 2-storey single family homes (1.6%), while townhouse/row and apartment units saw smaller gains (0.4% & 0.5% respectively).

The MLS® Home Price Index in February 2012 was up 5.1 per cent from levels in February 2011. The increase was the smallest since last June, and marked the fourth consecutive month in which gains slowed.

“MLS® HPI trends for February show that home price growth is generally slowing,” said Gary Morse, CREA President. “At the same time, price gains and trends differ among housing markets tracked by the index. Since all real estate is local, buyers and sellers should talk to their local REALTOR® to best understand how home price trends are shaping up where they live.”

The MLS® HPI remained above its year-ago level in all five of the markets tracked, led by Toronto (7.3 per cent). It also remains above year-ago levels in all housing categories tracked, led by two storey single family homes (6.9%).

The MLS® Home Price Index rose 1.1 per cent in February 2012 as compared to January. “The index typically rises in February from the previous month as demand ramps up leading into the spring housing market,” said Gregory Klump, CREA’s Chief Economist. “The monthly price increase in February this year was less than what we saw in either of the past two years, which is more evidence that the trend for Canadian home prices is slowing.”
Among housing categories tracked by the index, single family homes posted the biggest month-over month gains in most markets, particularly in Toronto where they are in short supply relative to strong demand.