Buyers are taking advantage of favourable real estate market conditions around St. John’s and areas….sellers too are reaping the rewards. Multiple offers are a factor in our marketplace once again, with well-priced listings—especially around the $200k to $260k price range. Properties priced at market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream. The Bank of Canada released today that it will keep it’s interest rate “as is” but hinted at the fact it will most likely increase in June/July due to Canada’s higher then expect latest GDP numbers.
Total # of new MLS Listings [Feb] =567 (based on residential stats)
Total # of Sales [Feb] = 259
Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2650 (residential only)
Here is a break down by area for the month of February
St. John’s Real Estate: Listings = 117 Sales = 66 Sales/Listings Ratio = 56%
Average Sale Price is St. John’s: $270,742 for the month of February and the 12 month average $240,470
Mount Pearl Real Estate: Listings = 13 Sales = 7 Sales/Listings Ratio = 54%
Average Sale Price (12 month average): $218,063
Paradise Real Estate: Listings =64 Sales = 18 Sales/Listings Ratio =28%
Average Sale Price (12 month average): $268,980
East Extern Real Estate: Listings = 37 Sales = 14 Sales/Listings Ratio = 38%
Average Sale Price (12 month average): $259,371
Conception Bay South Real Estate: Listings = 48 Sales = 19 Sales/Listings Ratio = 40%
Average Sale Price (12 month average): $225,728
The Bank of Canada just cut the key interest rate by 50 basis points (or 1/2 percent) to 3.50%. Chances are throughout the week, those with a variable mortgage (currently at 5 per cent) will see this reflected at their respective banks. For those mortgage shopping, this can lead to a very attractive scenario. Based on a 25 year mortgage at $200,000, it can save you approximately $58 per month. Remember that the variable rate mortgage is not directly related to the fixed rate mortgage so you may not see the 4 and 5 year term mortgage rate drop by 50 basis points. Your personal loans and lines of credit will also be reduced by 50 basis points.
The reason: the Bank of Canada based the decision around its January projection for inflation which has shifted to the downside. They also noted clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected. With inflation measures already showing a sharp slowing – the core CPI inflation rate dropped to 1.4% in January from 2.5% last June – the Bank decided to act aggressively and trim the overnight rate by 50 basis points to offset the downside risks facing the economy.