In St. John’s, speculation over the hyped up natural resource economy and a second drilling project outside the Hebron Ben Nevis continued to lure buyers to the area. Several new businesses to the city, including two Starbucks coffee houses and several big box retailers, suggest the city is poised for sustained growth. We have been seeing significant investors (and those that were sitting on the fence the past year) entering into the St. John’s Real Estate market in the past month. Mostly buying up 2-apt homes in the St. John’s, Mount Pearl areas. Not uncommon now to see 10 - 15 viewings in ONE DAY on a good 2-apt, and selling for well above market price in this market.

Urban housing starts ended the year on a positive note, according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC).

December’s total housing starts climbed 40 per cent, with 157 posted across provincial urban centres compared to 112 a year ago. Of the 157 starts, 130 occurred within the St. John’s region versus 95 last December, an increase of 37 per cent. Housing starts totaled 1,480 for the year within the region compared to 1,275 in 2006. Provincially, total urban housing starts came in at 1,825 for 2007, up 22 per cent over the previous year. “December’s total urban housing starts marked seven consecutive months of growth in residential construction activity in 2007,” said Chris Janes, Senior Market Analyst with CMHC in Newfoundland and Labrador. “A strong local economy, favourable
demographics and high consumer confidence drove the demand for newly built homes during much of the year,” added Janes.

For Canada’s urban centres, total housing starts fell 20 per cent to 11,176 in December over December of 2006. Single-detached starts fell four per cent to 6,098, while multiple starts of 5,078 represent a sizeable 34 per cent decline compared to last year.

Throughout Atlantic Canada, there were 651 urban housing starts, a 14 per cent jump over the previous December. Canada Mortgage and Housing Corporation conducts a monthly survey of housing construction in urban centres of Canada with a population of 50,000 and over.

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According to a House Price Survey report released yesterday by Royal LePage Real Estate Services, Canada’s real estate market posted significant gains in the fourth quarter of 2007 and showed little sign of the traditional seasonal slowdown. Average house prices continued to increase in the fourth quarter with many markets experiencing double-digit gains,

While most of the support was due to booming energy sectors, Saskatchewan, Manitoba and New Brunswick experience highest house price gains in Q4 2007.