St. John’s Real Estate outlook for 2009

January 5, 2009 · Filed Under First Time Buyers, Market Trends, St. John's Investments, St. John's Real Estate · Comments Off 

The first week of business for 2009,for me anyways, and already people are asking the million dollar question….where will the housing prices be in 2009?

As in most years, it’s difficult to predict.  Last year CMHC predicted 6% and RE/MAX stated at least 12%.  I remember saying after the first quarter we’ll see much higher then 12%.  The final tally for 2008 is not yet in but should be close to 23% in my opinion.

Now….where do I see the St. John’s real estate market for 2009.  Currently my mind is set at a 5% increase from 2008.

How can I say this with the US housing market expecting to drop even more, Canadian markets are predicted to lower in some areas, and the UK, no real direct relation, but the world housing market seems to be taking a hit right now.  It all boils down to consumer confidence, the provincial economy and a balanced market.  All three we are seeing in Newfoundland currently.

There are still a lot of sale pendings left over from 2008 that will help keep the numbers up for unit sales in 2009, but there is clear evidence that it’s no longer a seller’s market.  With mortgage rates still at VERY low levels, as well as increased inventory in new construction and pre-existing homes, this will leave more choices for buyers.

Personally I do not see the market going into the negative numbers, but I do see houses sitting longer on the market and “price reduced” signs being more familiar then “sold signs”.

St. John’s Newfoundland leads the charge for residential real estate in Canada for 2008

December 4, 2008 · Filed Under Real Estate Canada, St. John's Real Estate · Comments Off 

St. John’s, Newfoundland lead the charge for residential real estate in Canada in 2008, with an anticipated 11 per cent increase in unit sales over 2007, followed by Saint John, New Brunswick and Winnipeg.  Housing values are forecast to remain stable or climb in almost all markets in 2008, with the biggest gains expected in Regina (39 per cent), Saskatoon (24 per cent), Winnipeg (22 per cent), St. John’s (21 per cent), Saint John (19.5 per cent), Sudbury (14 per cent), and Montréal (12 per cent).

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confi dence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

Threat of global recession hinders home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX

December 3, 2008 · Filed Under Real Estate Canada, Remax Reports · Comments Off 

Mississauga, ON (December 3, 2008) – Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX. “Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. That said, we could see a bounce back as early as spring – if inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity.”

Click here for the RE/MAX Press Release

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

August 25, 2008 · Filed Under Mount Pearl Real Estate, New MLS Listings, St. John's Investments · Comments Off 

19 Moores Drive Asking $199,900

** SOLD** 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?

« Previous PageNext Page »