St. John’s Fall Housing Market

November 12, 2008 · Filed Under Market Trends, Newfoundland Oil and Gas, St. John's Investments and St. John's Real Estate · Comment 

CMHC has released the following report.

Strong fundamentals such as a solid local economy, continued immigration and favorable employment will sustain the demand for housing within the St. John’s region throughout the remainder of this year and in 2009. Accordingly,  the housing market will continue to perform well. The renovation sector will build on its recent strength, exceeding $800 million annually over the forecast period. With home ownership costs increasing, some prospective buyers remain sensitive to prices when considering the purchase of a home. However, personal income growth and a tight labour market will continue to provide support to the overall level of demand for both new and existing homes.  Furthermore, energy related announcements such as Hebron and growth throughout the Newfoundland oil industry continue to fuel the housing market, with unprecedented buyer demand supporting current and future house price appreciation.

Having posted record sales for several years in a row, the St. John’s resale market is expected to continue this trend, eclipsing the 4,000 unit mark this year and in 2009. Accordingly, the forecast calls for MLS® sales of 4,800 units this year, with 4,400 sales expected in 2009. With many new homes selling through the MLS® system, solid numbers for housing starts will have a positive impact on total MLS® sales over the forecast period.

Unprecedented housing market activity this year has been characterized by higher than normal unit sales, constrained listings supply and sharp price increases. In fact, active listings are approximately 40 per cent lower this year versus last year and with demand expected to remain high over the forecast period, unit sales growth will be constrained by fewer listings in 2009. While favorable for sellers, very tight resale market conditions have proved challenging for buyers, resulting in multiple offers and offers above list price on choice listings.

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St. John’s Housing Starts Increase in September

October 29, 2008 · Filed Under Market Trends, St. John's Investments and St. John's Real Estate · Comment 

ST. JOHN’S, October 8, 2008 – Urban housing starts increased during the month of
September, according to preliminary data1 released today by Canada Mortgage and
Housing Corporation (CMHC). September’s total housing starts increased 18 per cent,
with 268 posted throughout Newfoundland and Labrador compared to 227 a year ago.
So far this year, urban housing starts total 1,580 across the province, up 22 per cent.
209 of the 268 provincial starts were recorded within the St. John’s region versus 178
last September, an increase of 17 per cent. Year-to-date, housing starts within the St.
John’s region are 23 per cent higher than the same period last year, with 1,288
recorded.
“New home demand remains very high within the local housing market and much of the
increase in housing starts during September can be attributed to a 40 per cent reduction
in existing home inventory so far this year,” said Chris Janes, Senior Market Analyst with
CMHC in Newfoundland and Labrador. “With the Hebron agreement now in place, a
bustling local economy and positive in-migration, both the new and existing home
markets continue to show signs of strength,” added Janes.
For Canada’s urban centres, total housing starts retreated 20 per cent with 17,644 in
September compared to 22,033 during September of 2007. Single-detached starts fell
23 per cent to 6,299 while multiple starts of 11,345 represent an 18 per cent decrease
from a year ago. Throughout Atlantic Canada, there were 1,030 urban housing starts
versus 1,029 the previous September.

Just released from CMHC Housing Now Publication

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Canadian Real Estate News Roundup

October 22, 2008 · Filed Under Real Estate Roundup and St. John's Real Estate · Comment 

It’s the middle of the week and after having brutal weather, very high winds and approximately 65mm of rain I had a little time to surf the web.  :) Below are a couple of real estate related articles and news clips I stumbled upon.  Enjoy!

  • Looking for a couple quick and simple kitchen reno ideas?  Lazy Man and Money has a post on his blog on the topic of Easy and Cheap Home Remodels.
  • Urban housing starts increased during  September, according to preliminary data released today by Canada Mortgage and Housing Corporation.   Read more on the article St. John’s Housing Starts Increase in September and see the break down for other cities in Newfoundland.

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August MLS Newfoundland Stats

September 2, 2008 · Filed Under Monthly MLS Stats, St. John's Investments and St. John's Real Estate · 1 Comment 

Newfoundland MLS listings for August were down from the same time in 2007.  Approximately a 16% decrease, however there was a 4% increase in properties sold for August 2008 vs August 2007 and a 10% increase in sales for 2008 year to date.  This decrease in listing inventory and increase in properties sold is putting added pressure on selling prices.  The supply and demand curve is still showing a sellers market.

One point to note:  I’ve notice a big decrease in the properties sold in the $100,000 to $200,000 range and a large increase in properties sold over the $200,000 mark.  Particularly the $260,000 to $349,900 range.

Total # of New MLS Listings [Aug] = 758

Total # of Sales [Aug] = 595

Number of Active Listings in the NLAR MLS System = 2675

Our Real Estate system is not showing the stats for my normal monthly Newfoundland MLS housing price break down by real estate area.

What I can report is for all of Newfoundland, the average sales price is $170,482 year to date for 2008.  Compared to $147,201 for 2007.  Remember this is for ALL Newfoundland (nlar.ca)  Prices are closer to the $200,000 average in St. John’s, Mount Pearl and surrounding areas.

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New MLS residential listing levels reach new heights in July

September 1, 2008 · Filed Under Market Trends and Real Estate Articles · Comment 

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)

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Hebron is a go for Newfoundland

August 20, 2008 · Filed Under St. John's Real Estate · Comment 

Worth potentially 20 billion dollars to Newfoundland over the next 20 years and over 3000 jobs to be had.  Today Danny Williams unveiled the Hebron deal in a live news conference at the Fairmont Hotel in St. John’s. Start of construction is aimed for 2012 with oil projected to flow in 2017.

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Herbon Announcement Set for Tomorrow

August 19, 2008 · Filed Under Local St. John's, Market Trends, Newfoundland Oil and Gas, St. John's General, St. John's Investments and St. John's Real Estate · Comment 

The day has finally arrived. All newspapers and local websites are anticipating a formal announcement tomorrow from Premier Danny Williams giving the thumbs up for Hebron. Good timing seeing that the deadline for the agreement was slated to expire on Thursday.

The breakdown in ownership is Chevron Corp. which owns 28 per cent, Exxon Mobil Corp. the largest shareholder with 37.5 per cent, Petro-Canada and Norway’s state-owned StatoilHydro ASA own the rest. The province of Newfoundland will receive a 4.9 per cent equity stake in the project.

So far this year St. John’s Real Estate has jumped about 20% with a projected 15% increase in 2009. In the beginning of the year CHMC went on record saying 7 - 8% increase in housing prices while Remax was deemed highly optimistic with their 12% projection for 2008.

With this impending news release, how will the real estate market react? When will the oil companies start moving people into the St. John’s and start buying up properties? Is too much of a good thing too fast good for Newfoundland Real Estate?

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