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St. John's Newfoundland is one of North America’s oldest cities. Spectacular coastlines, panoramic views, outdoor adventure, rich history and culture await all who live here.
Stephen & Fraser Winters your RE/MAX real estate agents for St. John's. Whether buying, selling or relocating to Newfoundland put the successful Father and Son Realtors to work for you. Fraser and Stephen will show you the smart approach to buying and selling St. John's Real Estate.
Looking to buy a home in St. John’s? Relocating from another city to St. John's? Fraser and Stephen Winters are here to help you! Whether you are buying or selling, take advantage of our free St. John's real estate market reports and access to the St. John's area MLS.
Since Chevron signed the multibillion-dollar memorandum of understanding to develop the Hebron offshore oilfield project back in August 2007, St. John's real estate and surrounding areas have gained favorable optimism and increases in residential homes. Looking to sell you home for TOP DOLLAR? Contact Fraser and Stephen Winters for your free, confidential Home Market Evaluation
This real estate blog is written by Fraser & Stephen Winters. We both are full time successful top producing RE/MAX Realtors in St. John's, Newfoundland. The information contained on this website is from sources believed to be reliable. However, it may be incorrect. This information should not be relied upon without personal verification. We assume no responsibility for its accuracy. This information is not intended to solicit clients already under contract. For more information about us visit our website.
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August MLS Newfoundland Stats
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.
Mount Pearl Real Estate 2-apt
19 Moores Drive
Asking $199,900
Well maintained registered 2-apt home in Mount Pearl off Ruth Ave. Large landscaped lot backing on greenbelt. Large 2 car detached garage with rear yard access. New vinyl windows, new electrical. Basement apartment has 2 bedrooms and is currently rented. Great investment property. Call Fraser or Stephen Winters for more information or a private viewing.
Herbon Announcement Set for Tomorrow
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?
Newfoundland Real Estate Market Share
RE/MAX is once again top of the leader board for real estate market share in St. John’s and surrounding areas. Boasting slighty over 40% over all other competitors for the first half of 2008.
Say Goodbye to 40 year mortgages and 100% financing
The Canadian Government is making it tougher for home buyers to obtain a mortgage and with good reason. Starting October 15 of this year, the new rules will take effect.
We are all familiar with the sub-prime mortgage meltdown in the States the past year but while Canada is not even close to this disaster the government still feels it necessary to secure and maintain a strong mortgage and housing market.
The changes include:
- Cutting the maximum amortization period to 35 years from 40.
- Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
- Establishing a requirement for a consistent minimum credit score.
- Introducing new loan-documentation standards.
The people effected are the purchasers with less the 20% downpayment for a property as they are the people that require mortgage insurance with the purchase of real estate.
Mortgage insurance protects lenders (ie Royal Bank, Scotia Bank etc) when a borrower (the Purchaser) defaults on the loan if the sale of the property doesn’t cover the debt.
I for one am in agreement with this change. The zero down, 40 year mortgage that was introduced a couple years ago allowed home buyers the ability to purchase a home yet become heavily in debt. There was a lot of buyers that entered the real estate market in Canada during this time and probably shouldn’t have.
It will be interesting to see the public’s reaction to these changes.
Read the Globe and Mail Article - Ottawa tightens mortgage rules to avoid ‘bubble’
Read the CBC News release - Ottawa tightens mortgage insurance rules
Norm Fishers Saskatoon Blog Article - Canadian Government Says, “No More 40-year Mortgage for You!”
Edmonton Real Estate Blog - No More Zero Down, 40 Year Mortgages
A Little Real Estate humor
In the mist of the busy real estate in St. John’s this June I have slipped away from my blog postings. I have learned in busy times it’s good to maintain some humor throughout the day. Here are some “corny” quick laughs.
- Realtor sign–We have “lots” to be thankful for.
- I listed a maintenance free house. In the last 25 years there hasn’t been any maintenance.
- (Q) Did you hear about Robin Hood’s house? (A) It has a little John.
Remax Atlantic Canada Market Trends
An economic engine firing on all cylinders has driven residential real estate activity in Newfoundland and Labrador to new heights. Home sales in the first quarter of 2008 climbed just over 14 per cent, rising from 624 units—and a buyer’s market—one year ago, to 713 units, and a seller’s market. Average price followed suit, with year-to-date values rising close to 14 per cent to $156,953, up from $138,167 in 2007. The momentum is even greater in St. John’s, where average price now approaches $190,000. Not since a very short-lived period in 2004 has the city seen the level of consumer confidence that exists in the marketplace today.
Fueled by export growth—in the form of crude oil—Newfoundland-Labrador’s GDP growth led the country in 2007 at a substantial 13.4 per cent. Newfoundland- Labrador has reported the largest single-decade turnaround in GDP per capita in one decade—a first in Canadian history. Out-migration has been stemmed and population growth is expected for the first time in 15 years. Premier Danny Williams has promised that the province will be a “have” within the next 11 months.
Prosperity has fueled a spending spree that includes housing, retail, and auto sales. Inventory levels are tight and multiple offers are commonplace on homes across the board.
First-time buyers are entering the market en masse, taking advantage of zero and low down payment plans and longer amortization periods. Equity gains have also played a role, prompting serious move-up activity. Home sales priced in excess of $350,000 are brisk.
Investment is a growing segment of the real estate market, spurred by purchasers from Western Canada. Lower interest rates are expected to stimulate even greater activity in the marketplace.
There are $10 billion in capital works projects on the table and the pressure is only starting to build. Natural resources are the key to success and the future has never looked brighter for St. John’s. Real estate will following lock-step, with sales and prices exceeding 2007 levels by double-digits at year-end 2008.
Read the full Remax Atlantic Canada Martket Trends Report 2008
Recommended Real Estate Links
- Fraser and Stephen Winters
- Remax St.John's
- Terry Kelly
- St. John's MLS Listings
- Carter Home Designs
- St. John's Newspaper
- VOCM Local News
- CBC Newfoundland
- Eastern School District
- St. John's Weather
- St. John's Board of Trade
Real Estate Sites
- Search MLS.ca
- St. John's Listings
- Globe & Mail Real Estate
- Real Estate Blogs Directory
- Home Builders Association
- Atlantic Home Warranty
- Homeplus Online
Recent Entries
- New Subdivision in Pleasantville
- Vacancy Rate in St. John’s Decreases
- St. John’s Fall Housing Market
- Canada Real Estate News Roundup #2
- October Newfoundland Real Estate MLS Stats
- Are we seeing a slow down in the Newfoundland real estate market?
- St. John’s Housing Starts Increase in September
- New listing in Paradise - 154 Elizabeth Drive
- Canadian Real Estate News Roundup
- Sellers Market in St. John’s Keeps Active Listings Down
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