Third Quarter 2011 St. John's Housing MLS Market Outlook
MLS® Residential Sales Up in Third Quarter
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MLS® sales increased 12.8% to 1,493 compared to 2010’s third quarter sales of 1,323
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July, August and September MLS® sales were 499, 551 and 443, respectively
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Third quarter average MLS® residential house price climbed 6.5% to $253,755 compared to $238,285 during the third quarter of 2010
Buyers’ Market Conditions
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There were a 2,658 new residential listings during the third quarter compared to 2,356 during the same period last year, an increase of 13%
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Active listings or inventory averaged 2,750 a month from July to September versus 2,442 a month during Q3 of 2010
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The sales-to-active listings ratio indicated that 18% of listings sold in July, 20% in August and 17% in September, and averaged 18% during the quarter, unchanged from the third quarter of 2010
Active Listings Increase
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Active residential listings or inventory increased approximately 13% during the quarter
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Active listings for July, August and September were 2,816, 2,807 and 2,628, respectively
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With inventory increasing on par with sales, housing market conditions favoured buyers during the whole third quarter
Second Quarter 2011 MLS Housing Market Outlook
An improving economic outlook, along with historically low interest rates, will provide a solid foundation for the housing sector in 2011. However, high energy prices and moderating income growth will keep housing activity below 2010 levels.
A pullback in housing activity following significant gains in 2010 is expected in 2011. Single starts will show a moderate drop of close to 11 per cent. Multiple starts, which saw very strong growth of over 40 per cent in 2010, are expected to
decrease close to 14 per cent in 2011.
For Newfoundland and Labrador, energy and mining activity continue to be the main sources of growth. Capital investment will continue to provide stimulus for the economy and this will contribute to the best outlook in Atlantic Canada. For the province, expect 3.3 per cent GDP growth in 2011 and 2.4 per cent in 2012. Additional growth will come from the province’s infrastructure spending program. It is also expected that additional resource related projects will add to economic growth by the fourth quarter of 2011.
First Quarter 2011 MLS Trends for Newfoundland
MLS sales declined 8% to 614 compared to 2010’s first quarter sales of 665.
January, February and March MLS sales were 177, 182 and 255, respectively.
First quarter average MLS residential house price climbed 5.5% to $258,668 compared to $245,069 during the first quarter of 2010.
There were approximately 1,500 new residential listings during the first quarter compared to 1,450 during the same period in 2010.
Active listings or inventory averaged 1,500 a month from January to March versus a much lower 1,100 a month during Q1 of 2010.
St. John's Real Estate Market Update
Buyers are taking advantage of favourable real estate market conditions around St. John’s and areas….sellers too are reaping the rewards. Multiple offers are still in our marketplace, with well-priced listings—especially around the $200k to $300k price range. Properties priced at market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.
Need a Reason to Invest in St. John's Real Estate? How about Fifty one!
There are approximately 51 major developments that could take place in St. John’s this year. Pleasantville appears to be the hottest topic (as well as the largest development) A new Canadian Forces Base as well as 975 residential spaces.
The old Woolworth building is slated to become an office tower/parking garage.
An $18million dollar hotel is to be built at the corner of Prescott and Water Street.
A $15million dollar hotel/condo building is being built on Temperance Street.
The old Arcade building on Water Street as well as the old CBC building are aimed to be converted to office buildings and condos.
On Tiffany Lane in the East End of St John's a new $10million dollar condo development will be built.
In the West End of St. John's a new $8million dollar seniors condominium complex will be built as well as another in the Center of the City on Blackmarsh Road.
A 200 home project is expected to get underway off Ruby Line and Heavy Tree Road in Mount Pearl.
Lots of new Box Stores being constructed up on Stavanger Drive Area. (Best Buy, Kesleys, new RONA building, new Canadian Tire building) as well as new ones on Kesley Drive near Kenmount Terrace.
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