Newfoundland Housing Market Third Quarter MLS Trends

November 3, 2009 · Filed Under St. John's Real Estate · Comments Off 

Canada Mortgage and Housing Corporation released its data on the third quarter MLS housing market trends for Newfoundland yesterday.

MLS® Residential Sales Lower during Third Quarter

  • MLS® sales decreased 11% to 1,504 compared to last year’s record third quarter sales of 1,695
  • July, August and September MLS® sales were 536, 472 and 496, respectively
  • Third quarter average St. John’s MLS® residential house price climbed 13% to $206,852 compared to $182,306 during the third quarter of 2008 – the only consistent price growth market in Canada during the past 12 month period

Balanced Residential Resale Market

  • There were 2,282 new residential listings during the third quarter compared to 2,246 during the same period last year
  • However, active listings or inventory averaged 2,200 from July to September versus a much lower 1,750 during Q3 of 2008
  • Sales-to-active listings ratio hit 24% in September and averaged 23% during the third quarter versus 32% in Q3 of 2008

Balanced Market Keeps Active Listings Up

  • Normalized demand for housing caused active residential listings to increase 27% to the end of the third quarter
  • Active listings for July, August and September were 2,301, 2,150 and 2,077, respectively, with new listings of 918, 695 and 669, respectively
  • New listings were on par with 2008’s third quarter, but with available inventory 27% higher, the market was balanced

Canadian House Sales to rebound in 2010 says CREA

February 26, 2009 · Filed Under CREA Reports, Real Estate Canada · Comments Off 

In a new release from CREA earlier this month, Canadian house sales are expected to decline in 2009 but rebound back in 2010.  The full news release is below.

National MLS® home sales activity is expected to decline in 2009 before rebounding in 2010, according to a new residential housing forecast prepared by The Canadian Real Estate Association.

National MLS® home sales activity declined 17.1 per cent in 2008, and MLS® sales activity is forecast to fall an additional 16.9 per cent to 360,900 units in 2009. This would be the lowest level for national sales activity since the year 2000.  Sales activity is expected to decline from levels set in 2008 in every province, led by declines in British Columbia, Alberta and Ontario.

National MLS® home sales activity is forecast to rebound by 9.9 per cent to 396,600 units in 2010, marked by an acceleration in activity in the second half of that year. The rebound in activity in 2010 is forecast to be biggest in British Columbia and Alberta.

New listings on the MLS® systems of real estate Boards in Canada have been trending steadily lower since peaking in the second quarter of 2008, and that trend is forecast to continue. It is that combination of rebounding sales activity and fewer new listings that will stabilize the MLS® resale housing market in 2010.

“We are caught in a cycle where consumer confidence has been eroded because of job losses, and consumer confidence is an essential ingredient for housing sales activity,” says the President of The Canadian Real Estate Association, Calvin Lindberg of Vancouver. “And housing activity helps creates jobs.”

“The essential selling ingredients in today’s market are realistic pricing, marketing, and preparation. There are potential buyers making inquiries, but the barrage of economic news makes them much more cautious than before.”

The MLS® sales forecast developed by CREA Chief Economist Gregory Klump shows that fewer transactions in some of Canada’s more expensive housing markets, combined with reduced asking prices, will continue to put downward pressure on average MLS® sale prices.

The national MLS® average home price is forecast to decline eight per cent in 2009, with prices down most in Western provinces and Ontario. By contrast, the average home price in Newfoundland & Labrador is forecast to rise 4.8 percent in 2009. Prices are forecast to stabilize in 2010, with annual price increases of one per cent or less in five provinces.

The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average price is forecast to decline 6.4 per cent in 2009, and hold steady in 2010.

“Increasingly cautious homebuyers and mortgage lenders means that active listings will take longer to sell in 2009 compared to previous years,” said CREA Chief Economist Gregory Klump.

“The national housing market is recalibrating due to weak sales activity,” said Klump. “Supply will take time to adjust to lower demand, but sellers unwilling to accept offers below their expectations will remove their home from the market,” he added. “Fewer active listings reduces buyer choice, and in time puts a floor under prices,” CREA’s Chief Economist added.

Click here for the full PDF version of this news release.
(CREA 09/02/09)

October Newfoundland Real Estate MLS Stats

November 4, 2008 · Filed Under First Time Buyers, St. John's Real Estate · Comments Off 

The monthly Newfoundland Real Estate MLS housing price break down is showing a 1% decrease in listings this month and an increase of 21% in home purchases.  Year to date, listings are up slightly by 1% and sales up 14% compared to this time last year.  Interestingly, the total dollar value in sales was up 47% for the month of October.

Total # of New MLS Listings [Oct] = 764

Total # of Sales [Oct] = 636

Number of Active Listings in the NLAR MLS System = 2595

The average price of a home in the St. John’s Real Estate market is now $187,636 year to date for 2008.  Compared to $167,847 YTD for 2007.  Remember this is for ALL Newfoundland (nlar.ca)

Here is a break down by area for the month of October

St. John’s Real Estate: Listings = 186 Sales = 136 Sales/Listings Ratio = 73%

Average Sale Price: $202,896

Mount Pearl Real Estate: Listings = 15 Sales = 17 Sales/Listings Ratio = 113%

Average Sale Price: $186,612

Paradise Real Estate: Listings =31 Sales = 36 Sales/Listings Ratio =116%

Average Sale Price: $234,681

East Extern Real Estate: Listings = 28 Sales = 32   Sales/Listings Ratio = 114%

Average Sale Price: $219,193

Conception Bay Real Estate: Listings = 47   Sales = 40  Sales/Listings Ratio = 85%

Average Sale Price: $231,552

Average Housing Price Lower across Canada

October 15, 2008 · Filed Under Real Estate Articles, St. John's Real Estate · 4 Comments 

Average price of a home in Canada fell by 6.2 per cent since last year to an average of $315,461.  It was the fourth straight month in which prices fell on a year-over-year basis.

It appears that there are still pockets of real estate markets across Canada that are still booming.  However price declines in some of Canada’s more expensive housing markets will far outweigh further price gains in other markets (ie St. John’s Real Estate market)

Calvin Lindberg, CREA president says “Informed buyers and informed sellers look at the facts. And the facts right now indicate the real estate resale market is stabilizing in many markets.”

“There have also been a number of initiatives that will have an impact going forward, including the government’s decision to invest $25 billion in insured mortgage pools, the recent drop in the Bank of Canada rate, and the new rules reducing the maximum amortization to 35 years instead of 40,” the CREA President adds. Those new mortgage rules go into effect October 15th. “The third quarter MLS® statistics and these developments are more factors showing the Canadian market is not following U.S. housing trends.”

New MLS residential listing levels reach new heights in July

September 1, 2008 · Filed Under Market Trends, Real Estate Articles · Comments Off 

The number of new listings of homes for sale on the Multiple Listing Service® (MLS®) of all real estate Boards in Canada set a new record in July 2008, according to MLS® statistics released by The Canadian Real Estate Association (CREA).

New MLS® residential listings numbered 80,147 units in July 2008, up 1.4 per cent from the previous month and 0.5 per cent above the previous record set in May 2008. This is the first time in any month that new listings surpassed eighty thousand units.

The number of new listings scaled to new heights in Ontario and Quebec, and in Manitoba climbed to their second-highest level since the beginning of the new millennium. This more than offset a monthly decline in the number of new listings in Alberta, where levels continue retreating from the peak reached in March.

Seasonally adjusted national sales activity in July 2008 was stable compared to the previous month. It has been holding steady since posting a 6.0 per cent month-over-month decline in February. Monthly activity rose in Alberta, Nova Scotia and Prince Edward Island for the second time in as many months. Activity also rose on a month-over-month basis in Newfoundland & Labrador. The monthly increase in activity in these provinces was offset by a monthly decline in activity in British Columbia, Ontario, and Quebec.

Sales activity set a new monthly record in Manitoba, and in Newfoundland & Labrador. It also climbed to its highest point on record for the year-to-date in these provinces.

“To keep things in perspective, 2007 was a record year for MLS® sales in Canada,” says the President of The Canadian Real Estate Association, Calvin Lindberg. “The fact that sales volume continue at levels so close to that record year indicates what a dynamic and active real estate market there is in many regions of the country.”

“The other factor is that the more listings there are on the market, the bigger the impact on the average price,” the CREA President adds. “It means a market when buyers have more options, and sellers must be realistic in their pricing expectations. A REALTOR® has expertise and marketing resources to help both.”

Resale housing market balance is represented by sales as a percentage of new listings. The continuing rise in the number of new listings is resulting in a considerably more balanced resale housing market this year than buyers faced last year. This trend is most apparent in British Columbia and Saskatchewan, which remained the most balanced provincial markets in July. The market is showing signs of stabilizing in Alberta, where new listings have declined and market balance has tightened in each of the months from April to July 2008.

“The trend for new listings generally reflects recent price trends,” said CREA Chief Economist Gregory Klump. “While still elevated, new listings in Alberta are easing and market balance is stabilizing now that prices there have softened. Similar trends are expected to play out in other western provinces where prices posted sharp gains last year,” he said.

The national MLS® residential average price eased by 2.4 per cent year-over-year in July 2008, compared to the average price decline of 3.6 per cent in the major markets in Canada reported by CREA earlier this month. The MLS® price decline reflects softening average prices in Alberta and an increase in the province’s share of national sales activity compared to year-ago levels. By contrast, residential average price climbed to its highest level for the month of July in all other provinces except British Columbia, and its highest level ever in Newfoundland & Labrador. Average price for the year to date (as of July 2008) is 2.7 percent above where it stood over the same period last year.

Seasonally adjusted dollar volume for MLS® sales totaled $11.8 billion in July 2008, climbing to the highest level ever in Manitoba and Nova Scotia. It also reached the highest level on record for the month of July in Quebec, New Brunswick, and Newfoundland & Labrador. Volume for the year to date in July also achieved the second highest level on record, down 16.6 per cent from the peak last year.

(CREA 29/08/08)