August Housing Starts up in the St.John's Real Estate Market Urban housing starts decreased during the month of August, according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). August’s housing starts totaled 151 throughout the St. John’s real estate area versus 249 starts in August of 2008. An additional 18 starts were recorded in other urban areas across the province, for a total of 169 provincial starts compared to 316 the previous August. For the January to August 2009 period, the St. John’s area posted 1,026 housing starts versus 1,079 starts during the same period last year, while provincial starts totaled 1,180 compared to 1,312 a year ago. Balanced Market in St. John's for most of 2009Houses are staying on the market longer compared to last year and we are seeing lots of price reductions. It appears to be slipping into a balanced market now. However, there are still houses selling the same day and some still seeing multiple offers. 2-apt homes are still in high demand. As well as houses in the downtown St. John's area. Newfoundland Economy and Real Estate The Telegram included a "Horizons" section in the March 3 Saturday paper. Horizons is an Annual Business and Industrial Review and Forecast. It was evident that the pages were filled with talks of boom and wealth for Newfoundlanders. It was interesting to note the various headlines were powerful and promising. Article titles read "oil wealth driving provincial economy, impending boom, real estate hot thanks to Hebron Ben Nevis, growth and innovation in changing times, commercial industry growing." Not only is Newfoundland and Labrador's capital city St. John's noticing a significant increase in the housing market, but Torbay, Flatrock and Conception Bay as well. February Newfoundland Real Estate Stats Inventory increased slightly this month compared to January MLS stats. We are still down in inventory from 2007 by 5%. Sales have increased as well (up 38% from 2007) due to the number of buyers currently searching for a new home or investment property. Larger homes are being built and sold outside St. John's and Mount Pearl reflecting in higher prices for Paradise, East Extern and CBS this month. It will be interesting to see in the next few months if increased inventory levels from new home construction will relieve some pressure on current buyers. Many sub divisions are waiting to start their next phases in spring. To my knowledge Clovelly Trails has 70 lots and Roncolli Estates 15. Other subdivisions will be in full swing when the snow melts. Remax Canadian Real Estate Decade in Review RE/MAX Decade in Review 1997 - 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return. New Housing year over year growth rate Statscan recently released information on new housing prices throughout the major cities in Canada. The prices reflect December 2006 to December 2007. The fastest pace was Saskatoon, which led the nation with an annual price increase of a whopping 45.1 per cent. the St. John’s Real Estate Market year-over-year increase in new housing prices was 7.9 per cent. Hebron Ben Nevis - St. John's Newfoundland Hebron-Ben Nevis announcement is going to jump-start the province's industry, and bring in billions during its life. Employment in St. John's and area will increase bringing back Newfoundlanders currently working in Alberta. Relocation to St. John's real estate market will certainly benefit. The overall St. John's economy will surely boom in the next few years, including the St. John's, Mount Pearl, Paradise real estate market. |