“April’s brisk new home construction activity positioned the market 48 per cent ahead of the same month last year and 25 per cent year-to-date,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Continued growth in local employment, income and population combined with low mortgage rates has supported residential construction activity during the first four months of 2010,” added Janes.

In urban centres across Canada, total housing starts increased 79 per cent with 14,995 recorded in April compared to 8,387 during April of 2009. Throughout Atlantic Canada, there were 573 urban housing starts posted versus 419 the previous April, an increase of 37 per cent.

SOURCE: CMHC

Record MLS® Residential Sales during First Quarter

• „„MLS® sales increased 25.8% to a record 784 compared to 2009’s first quarter sales of 623 „„January, February and March MLS® sales were 240, 234 and 310, respectively.
• „„First quarter average MLS® residential house price climbed nearly 18% to $230,376 compared to $195,517 during the first quarter of 2009.

Market Conditions Fluctuated

• „„There were approximately 1,850 new residential listings during the first quarter compared to 1,500 during the same period in 2009 „„Active listings or inventory averaged 1,500 from January to March and around the same during Q1 of 2009.
• The sales-to-active listings ratio dipped into buyers territory, but hit 18.9% in March and averaged 17.3% during the quarter versus 13.8% in the first quarter of 2009

Active Listings Remain Low

• „„Despite the surge in new listings, record first quarter sales caused active residential listings to remain relatively low
• „„Active listings for January, February and March were 1,369, 1,503 and 1,644, respectively
• „„Although inventory was similar to 2009’s first quarter level, the 25.8% increase in sales resulted in balanced market conditions during most of the quarter

• • Real GDP declined 8.9%.
  • Employment fell by 2.5% and the unemployment rate increased to 15.5%.
  • Retail sales grew by 2.6% – the strongest performance in the country, with Newfoundland and Labrador being one of only two provinces to record sales growth.
  • Labour income increased by 4.2% – the second best performance among provinces.
  • Housing starts of 3,057; the second highest in 20 years.
  • Capital investment growth ranked fourth among provinces.
  • Personal income growth of 3.9% and disposable income growth of 4.7%.
  • Population of 508,925 as of July 1, 2009, an increase of 0.5% and the largest percentage increase since 1983.
  • Non-resident travel and tourism visitors increased 0.7% to 483,200 with expenditure growth of 1.4% to $375 million.

• 2010 Economic Outlook
  • Real GDP forecast growth of 4.0%.
  • Employment growth of 2.3% to 219,900.
  • Unemployment rate forecast to decline 0.6 percentage points to 14.9%.
  • Personal income and disposable income growth of 3.9% and 3.3% respectively, aided by wage gains and employment growth.
  • Retail sales growth of 5.0%.
  • Increase in population of 0.5% due to positive net migration.
  • Capital investment expected to increase by 23.0% to $6.2 billion.
  • Housing starts expected to increase 1.5% to 3,102. Residential construction spending of $1.6 billion, an increase of 3.5%.
  • Value of mineral shipments expected to increase about 60%, to $3.1 billion.
  • Total overnight tourist visits expected to increase by 1.3%.

2010 Investments in Infrastructure

Funding for the Conception Bay South Bypass extension, Team Gushue Highway extension and completion of the Torbay Bypass;

2010 Investments in Diversification

More than $126 million in funding for initiatives under the Departments of Finance, Business and Innovation, Trade and Rural Development including:

• $61 million in tax credits and incentives;
• $11 million in the Regional/Sectoral Diversification Fund;
• $2 million in the Aerospace and Defence Development Fund;
• $1 million for the Innovation Enhancement Fund plus $1 million in the Commercialization Fund, both under the Innovation Strategy;
• $1 million in the Oil and Gas Manufacturing and Services Export Development Fund as part of a two-year $3 million commitment;
• $4.9 million under the five-year Oceans of Opportunity Strategy to advance the ocean technology sector; and
• Other programs including the Small and Medium-sized Enterprise Fund, the Business Attraction Fund, and the Business and Market Development Program.

“The local residential construction industry remained buoyant throughout 2009 and ended the year off just nine per cent compared to 2008’s record pace,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Despite weakness in the global economy in 2009, positive local economic and demographic factors continued to support stable residential construction activity within the St. John’s region, as well as in other urban centres across the province,” added Janes.
For Canada’s urban centres, total housing starts increased 17 per cent with 12,262 recorded in December compared to 10,488 during December of 2008. Single-detached starts increased 44 per cent to 6,222, while multiple starts of 6,040 represent a two per cent decline from a year ago. Throughout Atlantic Canada, there were 672 urban housing starts posted versus 574 the previous December, an increase of 17 per cent.

Urban housing starts held steady during the month of November, according to preliminary data released today by Canada Mortgage an Housing Corporation (CMHC). November’s housing starts totaled 176 throughout the St. John’s area versus 173 starts in November of 2008. An additional 12 starts were recorded in other urban areas across the province, for a total of 188 provincial starts compared to 196 the previous November. “St. John’s area housing starts held steady relative to last November, posting a small increase of two per cent, with year-to-date starts off ten per cent compared to 2008’s accelerated pace,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Employment, income and population growth continues to support residential construction activity throughout the St. John’s region,” added Janes.

For Canada’s urban centres, total housing starts were flat with 13,507 recorded in November compared to 13,500 during November of 2008.  Single-detached starts increased 15 per cent to 6,671, while multiple starts of 6,836 represent an 11 per cent decline from a year ago.  Throughout Atlantic Canada, there were 641 urban housing starts posted versus 734 the previous November, a decline of 13 per cent.

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

September appeared to be a fairly balanced month for the St. John’s Real Estate market.  New MLS listings edged ever so slightly down, as did the number of sales compared to August’s Newfoundland Real Estate Stats.  Both the Canadian Real Estate Association and RE/MAX released reports last month indicating strong housing sales and positive real estate markets throughout Canada.  Here in St. John’s our 12 month average price for a home is $228,325 (single family home).  Huge increases if you compare past Newfoundland average housing prices of  $170,482 for 2008 and $147,201 for 2007.

Total # of new MLS Listings [Sept] =462 (based on residential stats)

Total # of Sales [Sept] = 331

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2093 (residential only)

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

St. John’s Real Estate: Listings = 188   Sales = 135 Sales/Listings Ratio = 72%

Average Sale Price is St. John’s: $237,259 for the month of September

Mount Pearl Real Estate: Listings = 32 Sales = 20  Sales/Listings Ratio = 63%

Average Sale Price: $219,715

Paradise Real Estate: Listings =41 Sales = 38 Sales/Listings Ratio =93%

Average Sale Price: $281,817

East Extern Real Estate: Listings = 38 Sales = 27  Sales/Listings Ratio = 71%

Average Sale Price: $256,696

Conception Bay South Real Estate: Listings = 40   Sales = 26  Sales/Listings Ratio = 65%

Average Sale Price: $229,135

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well underway. Percentage increases in sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421).

Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.

“Markets are heating up across the country,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Purchasers are clearly taking advantage of affordable prices and rock bottom interest rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. Prices are on the upswing and inventory levels are tightening, so the push toward home ownership is expected to continue throughout the Fall and possibly into early 2010.”

The recovery of Canada’s resale housing markets speaks to the tremendous value Canadians place on the importance of owning a home. The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates — Calgary (74.1), St. John’s (71.5), Regina (70.1), and Edmonton (69.2). Significant gains have also been made over the same period in markets such as Ottawa — where homeownership levels rose from 51.4 per cent to 66.7 per cent — and Toronto, where levels rose fro m 57.3 to 67.6 per cent.

“Despite August’s decline, the local residential construction sector has posted solid year to date results,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Employment and population growth throughout the St. John’s area this year continues to bode well for residential construction activity,” added Janes.

For Canada’s urban centres, total housing starts fell 27 per cent with 12,187 recorded in August compared to 16,807 during August of 2008. Single-detached starts decreased 26 per cent to 5,211, while multiple starts of 6,976 represent a 28 per cent decline from a year ago. Throughout Atlantic Canada, there were 835 urban housing starts posted versus 879 the previous August, a decline of 5 per cent.

We are about to enter into the fall St. John’s real estate market and things are still looking positive for the remainder of the year.  Average MLS housing prices for Newfoundland have been steadily increasing throughout the year.  Thanks to continuing low mortgage rates first time buyers and those looking to up size to bigger homes can still do so despite the large increase in Newfoundland housing prices since last year.  Two apartment (2-apt) homes are still in high demand and if priced right usually sell fairly quickly and for top dollar.

The average price for a home in St. John’s edged slightly higher again for another month, currently at $223,810 for a 12 month period) compared to the Newfoundland Average Sale Price of $201,799.  This is up from $170,941 from last years prices.

Total # of MLS Listings [Aug] =494 (based on single family homes)

Total # of Sales [Aug] = 336

Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2261 (residential only)

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

St. John’s Real Estate: Listings = 187   Sales = 147 Sales/Listings Ratio = 79%

Average Sale Price is St. John’s: $244,195 for the month of August

Mount Pearl Real Estate: Listings = 25 Sales = 26  Sales/Listings Ratio = 104%

Average Sale Price: $200,862

Paradise Real Estate: Listings =65 Sales = 33 Sales/Listings Ratio =51%

Average Sale Price: $261,353

East Extern Real Estate: Listings = 36 Sales = 23  Sales/Listings Ratio = 64%

Average Sale Price: $250,678

Conception Bay South Real Estate: Listings = 37   Sales = 40  Sales/Listings Ratio = 108%

Average Sale Price: $228,363