Canada Mortgage and Housing Corporation MLS Trends Newfoundland and Labrador

Canada Mortgage and Housing Corporation MLS Trends reports that the Newfoundland and Labrador MLS sales were 1,504, a 11% decline in the third quarter of 2009, over the 1,695 in the third quarter of 2008.

During the same period, average MLS residential house prices climbed 13% to $206,852 over the average prices in the third quarter of 2008 at $182,306.

The Newfoundland and Labrador real estate market has been the only consistent price growth market in Canada during the past 12 month period.

The number of active listings for the third quarter of 2009 averaged 2,200, 26% higher than the average of 1,750 in the third quarter of 2008.

Sales – to – active listings in the third quarter of 2009 were 24% as compared to 32% in the third quarter of 2008.

So what does this mean to the real estate buyers and sellers in Newfoundland and Labrador?

In summary, we can see that in the third quarter sales have declined, average prices have increased, active listings are higher and the sales – to – active listings are lower.

With the number of sales and the sales – to – active listings declining there are indications that we could begin to see prices level off or decline. As there are fewer buyers in the system, this will moderate demand.

In recent months, strong demand has driven prices upward due to consistent economic development, a positive outlook for the province and historically low interest rates. However a reduction in demand will have a moderating effect on prices.

As the number of people trying to buy a home decreases, some sellers will begin to compete more aggressively leading to a slowing price appreciation and possibly even some price depreciation.

However, should there be an increase in the number of buyers because of economic stimulus or further industrial development, prices will remain firm and may even continue to rise.

With interest rates as low as they are, any significant stimulus in the Newfoundland economy will lead to further growth in demand and that will continue to push prices higher.

You can read more on interest rates at "Have Interest Rates Bottomed? A Mortgage Lender Says They Are Beginning To Move Up.

© Copyright R. Greg Osmond 2009.

________________________________________________________________________________________

About the Author: R. Greg Osmond is a Platinum Award winning Realtor dedicated to serving the people of St. John's, Mount Pearl, Paradise, Kilbride, Goulds, Conception Bay South (CBS), Portugal Cove - St. Philips, Torbay – Flatrock – Pouch Cove, and Logy Bay - Middle Cove - Outer Cove, Newfoundland and Labrador. For over 21 years Greg has been practicing in Real Estate. He can be reached at 709-895-2500.

Want to get in touch? Email rgosmond1@gmail.com. For more information, please visit http://www.rgregosmond.com. Thinking of selling your home? I have a passion for helping my clients with buying and selling real estate! If there is any way I can be of service to you today, please feel free to contact me!