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St. John's Newfoundland is one of North America’s oldest cities. Spectacular coastlines, panoramic views, outdoor adventure, rich history and culture await all who live here.
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Since Chevron signed the multibillion-dollar memorandum of understanding to develop the Hebron offshore oilfield project back in August 2007, St. John's real estate and surrounding areas have gained favorable optimism and increases in residential homes. Looking to sell you home for TOP DOLLAR? Contact Fraser and Stephen Winters for your free, confidential Home Market Evaluation
This real estate blog is written by Fraser & Stephen Winters. We both are full time successful top producing RE/MAX Realtors in St. John's, Newfoundland. The information contained on this website is from sources believed to be reliable. However, it may be incorrect. This information should not be relied upon without personal verification. We assume no responsibility for its accuracy. This information is not intended to solicit clients already under contract. For more information about us visit our website.
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Newfoundland Vacation Properties In Demand
Demand for recreational properties in the Newfoundland continues to increase. According to a new Royal LePage report, a standard waterfront-land access cottage will cost you an average of 81 to 112 thousand dollars. Spokesperson Glenn Larkin says prices have gone up about 10 per cent since last year. Larkin says they are seeing a lot of buyers from Alberta. Larkin says there aren’t many properties available, so he expects a lot of interest in a new development in Deer Park.
Alberta prosperity boosts residential real estate markets
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.”
Newfoundland in the Spotlight once again
Reporter Greg Quinn wrote and article for Bloomberg entitled “Newfoundland Gets Off Canada’s Dole as Williams Takes on Exxon” discussing Newfoundland’s transformation (”Getting off the dole” Quinn eloquently put it) due to recent oil revenue and our Premier Danny Williams fight with the big oil companies.
Favorable high oil prices, personal income tax cuts, a budget surplus and booming economy - 9 percent growth last year which was three times the national average - seems to be the talk of the town.
Everywhere you turn people are talking about the prosperous times in Newfoundland’s future….most importantly the St. John’s real estate market.
Stated in his article was of course my interest….real estate.
The average price of a detached home in St. John’s jumped 13 percent in the first quarter to C$164,000, according to Royal LePage Real Estate Services. That’s almost double the national price increase.
The province’s economy has grown 50 percent since Hibernia began producing nine years ago. That’s second only to the 53 percent expansion in Alberta, whose tar sands hold the biggest oil deposits outside the Middle East.
March Real Estate Newsletter
There’s hot demand for people wanting to buy homes in the St. John’s, Mount Pearl region, and a lot of the interest is coming from outside the province. There is very little listing inventory (inventory in the region is down 50 per cent) A lot of the buyers are from outside the province, especially the province of Alberta. They see this region as a great place to invest as it has a healthy, prosperous economy. Statistics are showing that it will remain a seller’s market for a long time yet. Royal Bank of Canada reports show that housing prices in St. John’s are up 15 per cent.
Fraser and Stephen Winters March Real Estate Newsletter
Real Estate Investment Trusts
We have been getting quite a number of calls and emails from investors in Ontario, BC and quite a number from Alberta (Edmonton, Calgary, Fort Mac area) looking for investment properties in St. John’s, Mount Pearl areas. With a price range of $180,000 - $210,000 for a 2-apartment in St. John’s ($240,000 for newly a constructed 2-apt) this is a huge price difference from what the similar home would sell for in their area as well it’s a significant increase in prices from what we locally are accustomed to.
Not everyone wants to purchase or has the ability to purchase a second home as an investment so what are other options. REIT’s are the first thing that come to my mind.
A Real Estate Investment Trust or REIT is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income.
Ok so that was the “formal” definition. What does this mean to you?
Basically a REIT allows you to purchase equity or shares of stock in a company that holds and purchases real estate. For example, you can purchase shares of Northern Property Real Estate Investment Trust (NPR.UN) who own properties located in the Northwest Territories, Nunavut, Alberta and recently moved into the Newfoundland market by purchasing Hillview Terrace Suites. Most of Northern Property’s portfolio is held residential income producing properties.
Most REIT’s pay monthly distributions to share holders (similar to you collecting a rent check from a tenant). The distributions have the potential to increase ( similar to increasing your rent) and the cost per share of the stock has the potential to increase ( similar to your property increasing value).
A few other REIT’s that own property/companies in Newfoundland are:
- Crombie REIT (CRR.UN) - Avalon Mall & Village Mall and more
- Fortis Properties (FTS) - while not a REIT it owns a significant amount of commercial real estate, hotels and hydroelectric generation in Newfoundland
- Calloway REIT (CWT.UN) - Kelsey Drive box stores - Boston Pizza, Home Depot etc
Newfoundland Realtor brings listings to Alberta
I located an interesting article in The Western Star regarding a Corner Brook Realtor heading out to Fort McMurray for 9 days to promote Newfoundland Real Estate.
Realtor brings listings to Alberta to target Newfoundlanders who want to move home
CORNER BROOK
The Western StarA local Realtor is shopping its western Newfoundland properties to returning Newfoundlanders in Alberta this week.
K.S.A.B. Realty, its president Darren Brake and real estate broker Herb Johnson, have planned a nine-day exhibit in Fort McMurray of its real estate listings.
“Our target market is Newfoundlanders working and living in Fort McMurray who are thinking about retiring and moving back home,” Brake said.
K.S.A.B. has rented a board room at the downtown Clearwater Suite Hotel from Feb. 21-29, bringing professionally designed displays and presentations to showcase Marble Mountain Condominiums, Marble View Estates, Lake Shore Estates, Humber View Estates, Bells Brook Sub-division, and the residential and commercial real estate listed with the company in Corner Brook and throughout the Humber Valley.
In evaluating possible markets, to them, Alberta stood out above the rest.
“Because the target market in Alberta is Newfoundlanders, the prospective purchaser is already familiar with Newfoundland,” Johnson said.
“They know where Newfoundland is and they already know all the benefits of living here. Our job is to introduce them to the properties that are for sale in western Newfoundland.”
Fort McMurray has about a 40 per cent Newfoundland population, giving K.S.A.B. a market of about 24,000 people. With an average salary of over $100,000, they feel this market shows a lot of potential.“All we need is the correct product — to that effect, we have a lot of options to offer potential customers such as vacant land, vacation homes, condominiums, and new or existing houses,” Johnson said.
It will be K.S.A.B.’s fourth real estate exhibition outside the province.
The company has been attending property exhibitions overseas since 2006.“Over the past two years we have exhibited at three shows in Ireland and the UK,” Johnson said. “Going to Alberta will give us a presence in a new market.
“Our vendors expect us to promote their properties to new markets and they expect us to spend this kind of time and energy finding emerging markets for their real estate listings.
“Past shows have been successful. We are expecting more from this trip.”
Why the delay in New Home Construction in Newfoundland and Labrador?
While new home construction in Newfoundland and Labrador is booming, it is not uncommon now to see a six month closing date on new home construction. With a good percentage of the trades people presently working in Western Canada, some contractors are finding it difficult to recruit enough local trades people.
It is estimated that as much as10,000 Newfoundlanders and Labradorians are working out west for companies such as Syncrude, Suncor and Flint Energy, to name a few.
An estimated 4,000 are working on a rotational basis commuting to and from the province, bringing millions of dollars to local communities throughout Newfoundland and Labrador. Some of these commuters are staying in camps, where food, lodging and travel to and from the province are all fully paid.
Workers are drawn to jobs that often start above $100,000 per year and lots of overtime.
While it all may seem wonderful, it has to be a burden on the family structure with 20 days away and back home for 8 days of rest in a repeat cycle.
Can it last? What kind of wages would be required to keep at least some of our trades people home, and what affect will this have on the price of new construction?
Recommended Real Estate Links
- Fraser and Stephen Winters
- Remax St.John's
- Terry Kelly
- St. John's MLS Listings
- Carter Home Designs
- St. John's Newspaper
- VOCM Local News
- CBC Newfoundland
- Eastern School District
- St. John's Weather
- St. John's Board of Trade
Real Estate Sites
- Search MLS.ca
- St. John's Listings
- Globe & Mail Real Estate
- Real Estate Blogs Directory
- Home Builders Association
- Atlantic Home Warranty
- Homeplus Online
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- Canada Real Estate News Roundup #2
- October Newfoundland Real Estate MLS Stats
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- St. John’s Housing Starts Increase in September
- New listing in Paradise - 154 Elizabeth Drive
- Canadian Real Estate News Roundup
- Sellers Market in St. John’s Keeps Active Listings Down
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