As expected the real estate market for St. John’s and surrounding areas noticed a little slow down in July. Housing inventory appeared to be on the rise as well as the number of price reductions. The number of listings are up 4% this year compared to the same time last year and the number of sales are down 10%. Personally I think this is a little “blimp” in the market and should be no cause for concern. Majority of the houses sold in and around St. John’s were in the $260,000 to $349,900 range. There have been 6 houses that sold this year over the 1 million figure.
Total # of new MLS Listings [July] =1054 (based on residential stats)
Total # of Sales [July] = 522
Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 3937 (residential only)
Here is a break down by area for the month of July
St. John’s Real Estate: Listings = 199 Sales = 118 Sales/Listings Ratio = 59%
Average Sale Price is St. John’s: $281,912 for the month of July and the 12 month average $256,553
Mount Pearl Real Estate: Listings = 28 Sales = 22 Sales/Listings Ratio = 79%
Average Sale Price (12 month average): $226,224
Paradise Real Estate: Listings =64 Sales = 51 Sales/Listings Ratio =80%
Average Sale Price (12 month average): $278,293
East Extern Real Estate: Listings = 43 Sales = 32 Sales/Listings Ratio = 74%
Average Sale Price (12 month average): $277,410
Conception Bay South Real Estate: Listings = 47 Sales = 36 Sales/Listings Ratio = 77%
Average Sale Price (12 month average): $239,621
Buyers are taking advantage of favourable real estate market conditions around St. John’s and areas….sellers too are reaping the rewards. Multiple offers are a factor in our marketplace once again, with well-priced listings—especially around the $200k to $260k price range. Properties priced at market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream. The Bank of Canada released today that it will keep it’s interest rate “as is” but hinted at the fact it will most likely increase in June/July due to Canada’s higher then expect latest GDP numbers.
Total # of new MLS Listings [Feb] =567 (based on residential stats)
Total # of Sales [Feb] = 259
Number of Active Listings in the NLAR MLS System (ALL of Newfoundland) = 2650 (residential only)
Here is a break down by area for the month of February
St. John’s Real Estate: Listings = 117 Sales = 66 Sales/Listings Ratio = 56%
Average Sale Price is St. John’s: $270,742 for the month of February and the 12 month average $240,470
Mount Pearl Real Estate: Listings = 13 Sales = 7 Sales/Listings Ratio = 54%
Average Sale Price (12 month average): $218,063
Paradise Real Estate: Listings =64 Sales = 18 Sales/Listings Ratio =28%
Average Sale Price (12 month average): $268,980
East Extern Real Estate: Listings = 37 Sales = 14 Sales/Listings Ratio = 38%
Average Sale Price (12 month average): $259,371
Conception Bay South Real Estate: Listings = 48 Sales = 19 Sales/Listings Ratio = 40%
Average Sale Price (12 month average): $225,728
The stats for the past few months have shown significant price gains in the St. John’s real estate market. However, the past few weeks we’ve been noticing a slow down in activity. The stats of course have not be tallied at this point, but it will be interesting to see if this is a trend or a simple lull in the market.
Typically this time of year the real estate market slows a little. We normally see a quieter October, ramping up in November and then slowing as we near Christmas time.
The month of October brought fear throughout most of North America, if not the world. With the stock market tumbling, prime lending rate dropping, rumors of a recession, the cost of oil dropping (currently sits at $64.72 as I write this) and the removal of the 40 year, 100% financed mortgage. Quite the exciting month.
Have the effects of this past months news slipped into our real estate market? Most of the real estate markets throughout Canada have been in a slight decline. (Check out Maggie Chandler’s post on what Canadian cities housing prices are up and what ones are down)
Are we slowing into this trend or are we just seeing a normal yearly slow down?
People who look for a home during the holidays tend to be more serious about buying. The serious buyers have fewer houses to choose from during the holidays which in turn means less competition and more money for you. When the new year rolls around in January, the amount of listings will increase. With more properties on the market there will be less demand for your particular home.
Houses show better when decorated for the holidays! Buyers tend to be more emotional during the holidays, so they are more likely to pay your price if it’s something they really want.
Often, buyers have more time to look for a home during the holidays than during a regular work week, especially during winter vacations!
Traditionally, January is the month for corporate transferees to begin new jobs. Since these transferees can’t wait until spring to buy real estate, your house should be listed now for them to view on MLS.
You can have your house for sale on the real estate market and still have the option to restrict showings during the holidays for your special family occasions!
Best of all, you can sell now and arrange a delayed closing or extended occupancy til after the new year!