Strong Second Quarter for St. John’s Real Estate Housing Market for 2012

August 7, 2012 · Filed Under CMHC Reports, St. John's Real Estate · Comments Off 

Continued growth in population,  income and employment supported  housing market activity during the  second quarter of this year. Both the  new home and existing home markets  were strong, due to solid growth in  the local economy that continued to  draw people to the St. John’s area.

New Home Construction  Activity Higher

New home construction activity advanced throughout the St. John’s area during the second quarter and price growth continued. There were  644 housing starts versus 572 in 2011’s second quarter. Single-detached starts activity totalled 409 compared to 387 a year ago, while 235 multiple  starts were recorded compared to 185 during the second quarter of 2011.

Throughout the entire St. John’s CMA, approximately three quarters of all new single-detached homes sold for more than $300,000 during the second  quarter. The fastest growing segment  of the market was the $400,000  plus segment, which increased to 29 per cent of total new home sales from 21 per cent a year ago.

The overall average new house price for the St. John’s CMA was $412,452 as compared to $346,476 recorded during the second quarter of 2011.  Led by several large, high-end new homes and condos, the average sale price was highest in St. John’s city at $507,586.

Stable Existing Home Market

Relatively unchanged inventory levels  contributed to stable existing home market conditions during the second quarter. Prospective home  buyers had a large number of homes to choose from as inventory levels remained similar to 2011’s second quarter. Listings remained on the market for an average of 78 days compared to 73 days during the second quarter of last year, with offers at approximately 97  per cent versus 98 per cent of asking  price a year ago.

For the St. John’s area, there were 2,158 new residential  listings compared to 2,145 during the  same period last year. Active listings  averaged 1,943 a month versus a  similar 1,971 during the first quarter  of 2011.

The average MLS® residential price in the St. John’s CMA was $277,899 compared to $265,350 during the  second quarter of 2011. The average
price continued to be supported by demand driven by local economic and demographic conditions.

St. John’s Real Estate Housing Now CMHC Report

August 6, 2011 · Filed Under St. John's Real Estate · Comments Off 

The St. John’s housing market slowed as expected during the second quarter of 2011. Here is CMHC’s Housing Now Report.

The current price environment, combined with a significant inventory of unsold homes, contributed to reduced housing market activity during the second quarter of 2011. New home construction was flat and the MLS® residential market posted a decline in sales. Average prices in both the new and existing markets continued to advance. From an economic perspective, growth in population, income and employment continued to add support to the local housing market.

New Home Construction Flat
Residential construction activity was flat throughout the St. John’s area during the second quarter. New home prices, however, continued to advance compared to the same period in 2010. Total housing starts were down approximately one per cent, with 572 starts versus 576 in 2010’s second quarter. However, there were only 387 single-detached starts compared to 499 during the second quarter of 2010, which represents a 22 per cent decline for this segment. This was offset by higher multiple starts activity, with a total of 185 units during the quarter compared to 77 a year ago. The multiple segment was led mainly by 174 starts in the form of apartments (basement) and condos.

MLS® Residential Market Favours Buyers
A modest decline in sales and higher inventory saw the market remain favourable for buyers during the second quarter. In terms of resale market characteristics, buyers had a much broader choice of homes with available inventory approximately 34 per cent higher than a year ago. Listings remained on the market for an average of 70 days, while prices continued to show gains compared to the April to June period of 2010. Despite higher inventory, offers came in at approximately 98 per cent of asking price. For the St. John’s area, there were 2,145 new residential listings compared to 1,876 during the same period last year. Active listings averaged 1,971 per month, versus 1,472 per month during the second quarter of 2010. The sales-to-active listings ratio averaged 14 per cent compared to 20 per cent during the same period a year ago.

MLS® Prices Increase Despite Sales Decline
With existing home sales lower and inventory higher throughout the St. John’s area, the average MLS® residential price still showed growth compared to the same period in 2010. The number of MLS® sales declined 10.5 per cent with 803 sales compared to 2010’s second quarter total of 897 units. The average MLS® residential price in the St. John’s CMA was 8.5 per cent higher than it was a year ago. Despite a decline in sales activity and increased inventory in the second quarter, the average MLS® residential price was $265,615 compared to $244,716 during the second quarter of 2010. The average price stabilized and remained around the $265,000 level throughout the quarter and continued to be supported by positive local economic conditions.
At the provincial level, there were 970 MLS® sales compared to 1,094 in the second quarter of 2010. The average MLS® residential price in Newfoundland was $248,525 during the April to June period – an increase of seven per cent.

April Housing Starts for the St. John’s Area

May 10, 2011 · Filed Under CMHC Reports, St. John's Real Estate · Comments Off 

ST. JOHN’S, May 9, 2011 – Housing starts in the St. John’s region declined during the month of April, according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). April’s housing starts totaled 71 units throughout the St. John’s area compared to 129 units in April  of 2010. There were five additional starts recorded in urban centres outside the St. John’s area, for a total of 76 urban housing starts across the province.

“New home construction activity slowed in April, with significant declines recorded in both single and multiple starts,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “While housing starts are forecast to end the year down from 2010 levels, the trend to lower levels of activity is expected to moderate in the coming months,” added Janes.

In urban centres across Canada, total housing starts recorded in April were down 15 per cent to 13,528 units compared to last year’s total of 15,897. Single-detached starts declined 27 per cent to 5,382 units, while multiple starts decreased four per cent to 8,146 units in April. In the Atlantic region, 551 new units were started compared to 640 units during April 2010.

The complete CHMC Report can be found here.

CMHC Housing Now report for St. John’s

February 7, 2011 · Filed Under CMHC Reports, Market Trends, St. John's Real Estate · Comments Off 

CMHC just released their First Quarter 2011 edition of  Housing Now – Major Centres – St. John’s.  You can view the entire PDF release here http://www.cmhc-schl.gc.ca/odpub/esub/64199/64199_2011_Q01.pdf

Here are some of the highlights:

– High prices and an increasing inventory of unsold new and existing homes saw  housing market activity continue to slow during the fourth quarter of 2010

– During the October to December period, both new home construction and resale market activity registered declines.

– Average prices,  however, advanced compared to 2009, but remained relatively unchanged on a  month-over-month basis

– Residential construction activity declined moderately

– Total housing starts were down approximately six per cent, with 488 starts versus 520 in 2009’s fourth quarter

– The overall average new house price for the St. John’s CMA was $326,954

– 50 per cent of all new single-detached homes sold for more than $300,000 during the quarter

– decline in sales and increased inventory, positioned the market as buyers again during the fourth quarter

– buyers had a much broader choice of homes because available inventory  increased approximately 40 per cent in the quarter, including a 56 per cent surge in December

– Listings remained on the market for an average of 65 days

– Despite higher inventory, offers came in at approximately 96 per cent of asking
price

– The average MLS® residential price in Newfoundland was $238,696 during the October to December period – an increase of 12 per cent.

CMHC Reports St. John’s Area February Housing Starts

March 9, 2010 · Filed Under CMHC Reports · Comments Off 

ST. JOHN’S, March 8, 2010 – Urban housing starts increased during the month of February, according to preliminary released today by Canada Mortgage and Housing Corporation (CMHC). February’s housing starts totaled 68 throughout the St. John’s area versus 45 starts in February of 2009. There were no additional starts recorded outside the St. John’s area. “February’s brisk residential construction activity was attributed to a combination of continued demand and an unseasonably mild winter month,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Local economic and demographic conditions continue to support new home construction throughout the St. John’s region and the first two months of 2010 indicate a solid start to the year,” added Janes.

St. John’s Housing Starts increase in First Quarter

April 12, 2009 · Filed Under St. John's Real Estate · Comments Off 

CMHC just released the following report on housing starts in St. John’s.

Urban housing starts were positive during the first quarter of 2009, despite retreating slightly during the month of March, according to preliminary released today by Canada Mortgage and Housing Corporation (CMHC). Housing starts totaled 214 throughout the St. John’s area during the first quarter compared to 172 starts during the same period last year. For the month of March, there were 45 starts compared to 55 during March of 2008. With 224 total starts recorded province-wide versus 176 a year ago, Newfoundland and Labrador was the only province in Canada with positive first quarter results.

“Despite retreating slightly during the month of March, urban housing starts posted solid results during the first quarter of this year, increasing 24 per cent over the same threemonth period in 2008,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “The local economy remains stable and continues to support housing market activity,” added Janes.

For Canada’s urban centres, total housing starts fell 45 per cent with 8,629 recorded in March compared to 15,616 during March of 2008. Single-detached starts decreased 46 per cent to 2,566, while multiple starts of 6,063 represent a 44 per cent decline from a year ago. Throughout Atlantic Canada, there were 244 urban housing starts posted
versus 522 the previous March.

New home construction in Canada is slowing to more sustainable levels and starts are forecast to come in at 160,250 units, within a range of 141,000 to 180,000 units in 2009. These trends are reflected in the year-to-date actual starts. These decreases, however, should be viewed in the context that housing starts have been exceptionally strong over
the past 7 years, exceeding 200,000 units per year.

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