7 Reasons to Invest in Newfoundland Real Estate

March 2, 2008 · Filed Under Newfoundland Top 7 · 4 Comments 

The Top 7 Reasons to Invest in Newfoundland Real Estate are:

7. Average price for a home in Newfoundland is MUCH lower then the Canadian average house price. A 2-apt home for $200,000 can fetch you an extra $1600 a month cash flow (before expenses and mortgage)

6. The next few years are looking promising for the real estate market. Remax is predicting a 12% increase in housing prices for 2008.

5. Oil and Gas – Hebron, White Rose, Hibernia, Terra Nova Project, all major contributors to the Newfoundland Economy.

4. The cost of living in Newfoundland is lower per person/family then other provinces in Canada.

3. Danny Williams. Whether you like him or not, the “Danny Williams Effect” has certainly placed a positive spin on Newfoundland.

2. View some of the most spectacular images in the world off the coast of Newfoundland and Labrador. Watch whales breach and icebergs float by your reasonable priced ocean front property. Own a little corner of the world you can call your own.

1. Quality of living. Newfoundland being an island has a low crime rate and a high standard of living. Little to no traffic. Plenty of provincial parks and golf courses. Top notch amenities. As well as our genuine Newfoundland hospitality, quick wit, and charm.

Remax Decade in Review

February 22, 2008 · Filed Under Market Trends, Remax Newfoundland, St. John's Investments, St. John's Real Estate · Comments Off 

Residential real estate markets across Canada post solid gains over past decade, says RE/MAX. Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released by RE/MAX.

RE/MAX Decade in Review 1997 – 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.

Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values – or an 11.7 per cent increase annually – with average price rising from $111,587 a decade ago to $338,636 in 2007. Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period.

Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John’s at 106 per cent.

Average Price1997 – 2007

07 vs. ’97 Compound
Market 1997 2007 % +/- % ’97 vs. ’07
Greater Vancouver Area $287,094 $570,795 98.8 7.1140
Victoria $218,398 $466,974 113.8 7.8960
Kelowna $178,525 $497,322 178.6 10.79
Calgary $143,305 $414,066 188.9 11.1940
Edmonton $111,587 $338,636 203.5 11.7400
Saskatoon $98,270 $232,754 136.9 9.0050
Winnipeg $86,040 $187,456 117.9 8.0990
Barrie $140,569 $258,999 84.3 6.3020
Greater Toronto Area $211,307 $376,236 78.1 5.9390
Hamilton-Burlington $151,538 $268,857 77.4 5.9010
London-St. Thomas $131,382 $202,908 54.4 4.4420
Kitchener-Waterloo $141,387 $252,429 78.5 5.9680
Sudbury $108,521 $182,536 68.2 5.3380
Kingston $124,123 $222,300 79.1 6.0010
Ottawa-Carleton $143,866 $277,058 92.6 6.7730
Halifax-Dartmouth $109,827 $216,339 97.0 7.0140
Prince Edward Island $86,403 $133,457 54.5 4.4430
St. John’s $92,226 $149,258 61.8 4.9320
Saint John $86,171 $140,544 63.1 5.0130

National $154,606 $307,265 98.7 7.1100
Source: CREA, Local Real Estate Boards, RE/MAX

The decade was not without its obstacles – the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border. Given the continuation of sound economic fundamentals, it’s expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.

Record Breaking Real Estate Market in 2007

January 9, 2008 · Filed Under Market Trends, St. John's Real Estate · Comments Off 

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.


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.

Housing market the focus of this week’s Canadian economic release

January 7, 2008 · Filed Under Market Trends · Comments Off 

Canada’s economic data release schedule kicks into high gear starting on Wednesday of this week with housing starts for December followed by the new house price index and building permits for November on Thursday  Forecast is that housing starts were lower in December as single-house starts likely unwound November’s 13.1% surge.

The new housing price index (NHPI) likely crept higher in November in line with an increase in the sales-to-new-listings ratio, an indicator of the supply and demand balance in the housing market. Building permits were likely down 2% in November with residential permits likely relatively flat, mirroring the behavior of housing starts, and non-residential permits likely to partially unwind October’s 19.1% surge.