Strong Second Quarter for St. John’s Real Estate Housing Market for 2012

August 7, 2012 · Filed Under CMHC Reports, St. John's Real Estate · Comments Off 

Continued growth in population,  income and employment supported  housing market activity during the  second quarter of this year. Both the  new home and existing home markets  were strong, due to solid growth in  the local economy that continued to  draw people to the St. John’s area.

New Home Construction  Activity Higher

New home construction activity advanced throughout the St. John’s area during the second quarter and price growth continued. There were  644 housing starts versus 572 in 2011’s second quarter. Single-detached starts activity totalled 409 compared to 387 a year ago, while 235 multiple  starts were recorded compared to 185 during the second quarter of 2011.

Throughout the entire St. John’s CMA, approximately three quarters of all new single-detached homes sold for more than $300,000 during the second  quarter. The fastest growing segment  of the market was the $400,000  plus segment, which increased to 29 per cent of total new home sales from 21 per cent a year ago.

The overall average new house price for the St. John’s CMA was $412,452 as compared to $346,476 recorded during the second quarter of 2011.  Led by several large, high-end new homes and condos, the average sale price was highest in St. John’s city at $507,586.

Stable Existing Home Market

Relatively unchanged inventory levels  contributed to stable existing home market conditions during the second quarter. Prospective home  buyers had a large number of homes to choose from as inventory levels remained similar to 2011’s second quarter. Listings remained on the market for an average of 78 days compared to 73 days during the second quarter of last year, with offers at approximately 97  per cent versus 98 per cent of asking  price a year ago.

For the St. John’s area, there were 2,158 new residential  listings compared to 2,145 during the  same period last year. Active listings  averaged 1,943 a month versus a  similar 1,971 during the first quarter  of 2011.

The average MLS® residential price in the St. John’s CMA was $277,899 compared to $265,350 during the  second quarter of 2011. The average
price continued to be supported by demand driven by local economic and demographic conditions.