Kirkland Balsom St. John’s Real Estate Market Overview 2010

February 18, 2010 · Filed Under Market Trends, Real Estate Articles, St. John's Condos, St. John's Real Estate · Comments Off 

Kirkland Balsom and Associates have just released their Real Estate Market Overview 2010 for St. John’s. I’ve shared this report the past 2 years and once again this year they are “spot on” with their assessments.

Here is an outline of their report:

RESIDENTIAL MARKET
Strong demand with less supply results in higher prices

The residential market just keeps on rolling! Demand remains strong and supply remains tight for well located and appropriately priced homes. The underlining drivers for this strong demand appears to be the fear of having to pay more in the future, easy access to favourable financing and strong employment throughout the region. A substantial increase in land values over the past year spurred new home construction cost and more than offset a slight softening in the sub-trades. Anticipated higher borrowing cost in late 2010 may serve to increase demand in the first half of 2010; however, could weaken demand in the second half. Pending an unforeseen increase in listing inventory, further price increases is
anticipated.

MULTI-RESIDENTIAL/CONDOMINIUM SECTOR
Effective full occupancy

With the apartment complexes at effective full occupancy and no new inventory on the horizon, rental rates should continue to increase. Not surprisingly in light of these trends, investor interest remains strong. A number of older apartment buildings in the university area have been purchased, renovated and converted to condominium units. Market activity also remains strong in the small scale 2-6 unit projects as entry level investors compete for limited supply.
Prices/demand continues to strengthen in condominiums at all price points. Escalating construction costs and an aging population will stimulate condo demand and values in the coming year.

St. John’s Real Estate Market Overview – Kirkland Balsom & Associates

January 22, 2009 · Filed Under Market Trends, St. John's Investments, St. John's Real Estate · Comments Off 

Once again Kirkland Balsom & Associates have released their Real Estate Market Overview 2009.  (View the  Real Estate Market Overview 2008 edition)

Some of the highlights of the report are:

  • Great news for people with investment properties and rentals – “Increased economic activity and job opportunities throughout 2008 have pushed residential apartment vacancy rates to less than 1 percent.  Rental rates increased an average of 5 percent; however, remain below levels sufficient to warrant new construction.  With no significant supply entering the market in over 25 years further rent increases are imminent.”
  • In referring to 2 – 6 unit properties - “Prices continue to strengthen with much of the activity driven by out-of province investors anticipating growth from enhanced employment and economic spin-off. This trend is expected to continue through 2009.”
  • “There is an increasing trend towards investors purchasing older apartment buildings and converting them to condominiums.  Higher priced condominiums are expected to grow in demand with the aging population in the greater St. John’s region.”
  • Water taxes in St. John’s will increase by $80 per unit in 2009 to a rate of $520 per year.

An interesting point they mention is to have the assessed value of your home reviewed.  With the big jumps in prices last year and the upcoming assessment for property tax for 2010, tax payers can expect to pay more property taxes.

The key questions to ask are as follows:

  1. Is the value assigned to my property above market value as of January 1, 2008?
  2. Is the value assigned fair when compared to similar properties?

Very important especially in the market we saw last year.  I know I will be paying particularly close attention to mine.  Remember, you only have 30 days to appeal when you receive your assessment.  Make sure you call Kirkland Balsom & Associates and have your assessment reviewed.

Read the entire Real Estate Market Overview 2009 Report here

Kirkland Balsom & Associates – Real Estate Market Overview

February 8, 2008 · Filed Under Market Trends, Real Estate Articles, St. John's Real Estate · Comments Off 

The fine folks at Kirkland Balsom & Associates just released their Real Estate Market Overview for 2008.

The estimations for growth may vary; nevertheless, the consensus with most local real estate players is that 2008 will be a robust year for residential real estate. Private real estate companies are predicting double digit increases while CHMC projects an increase of 7.6%. Increased job growth, higher personal incomes and continued relatively low interest rates will drive the residential real estate market in 2008. Condominium activity appears to have seen the most growth with an increase in sales activity of approximately 40% from 2006 to 2007. This increase is attributed to a growing demand due to demographics and several new condominium developments offered to the market. While purchasing a condominium for owner occupancy appears to be a wise decision, given the current attainable rents, purchasing as a pure investment is less attractive.
“Newfoundland and Labrador and a consortium led by Chevron have signed a multibillion-dollar memorandum of understanding to develop the Hebron offshore oilfield project in August 2007. Since the announcement the real estate market has spiked with tremendous optimism from buyers betting on increased values in coming years. This “need to buy now” mindset has spurred multiple offers on properties, often at above perceived market value. While demand increases it is even more important not to overpay or offer your property to the market without professional and independent advice.”

Make sure you view the complete Real Estate Market Overview here.