Vacancy Rate in St. John’s Decreases

November 13, 2008 · Filed Under First Time Buyers, St. John's Investments and St. John's Real Estate · Comment 

Several factors will decrease the vacancy rate this year and in 2009 CMHC reports.

As home ownership costs rise, the movement of renter households to home ownership will continue to slow. However, out-migration of the 18 to 24 year-old segment of the population will persist and once again this will put upward pressure on the vacancy rate. In fact, close to 80 per cent of this age group tend to be renter households. Investment in rental housing will increase the supply only slightly this year and next.

Accordingly, the vacancy rate for structures containing three or more units is forecast at 1.0 per cent in 2008 and 1.5 per cent in 2009. With the vacancy rate decreasing, expect monthly rents to increase by 6.0 and 11 per cent this year and next, respectively, as landlords attempt to recover increased costs associated with maintaining the rental stock and lower vacancies and higher energy costs exert upward pressure on rents.

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Newfoundland leads Country with increase in Unit Sales

May 14, 2008 · Filed Under Home Maintenance, Monthly MLS Stats, Real Estate Articles, St. John's Investments and St. John's Real Estate · Comment 

Unit sales in Canada for April rose the most in Newfoundland & Labrador at a 27 per cent gain over last year, followed by Saint John at 18 per cent, according to CREA.

While Home sellers flooded the markets in Toronto and Saskatoon last month, causing the number of listings to surge to a record level in Canada. Kitchener-Waterloo, St. John’s Newfoundland, and Thunder Bay actually saw a decrease in the number of homes on the market.

It appears that throughout most of Canada we are seeing a pull back in prices and real estate sales, a cool down. But not in Newfoundland. The only thing cool in Newfoundland right now is the temperature. Prices are continuing to rise. Buyers are continuing to flood the market and investors are still looking for rental properties.

In Saskatoon where prices are continuing to sky-rocket, buyers seemed leery about the idea of purchasing a new home. “70 per cent said it was not a good time to make a purchase.” In contrast to Atlantic Canada where 49 per cent were positive towards the idea of owning a new home.

CREA released it’s First Quarter Forecast 2008 earlier last week and as expected, MLS home sales are forecast to ease gradually in all provinces in 2008, but record-level activity in Saskatchewan and Newfoundland & Labrador during the first quarter will result in new annual records in these provinces.

Source: Homes Market Flooded by Sellers - Globe and Mail

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