Real Estate Values Are Up Again in Newfoundland

Real estate values are up again in Newfoundland? A recent BusinessWeek headline about real estate values in Canada reports that new-home prices rose 0.4 percent in January from the previous month, the seventh straight gain.

The data, taken from Statistics Canada, shows that St. John's, Newfoundland was leading the way with the new house price index gaining 1.7 percent. After St. Johns came a 0.7 percent increase in Winnipeg, Manitoba.

Canada's mortgage rates are close to the lowest since the Korean War. Its no wonder home sales and prices indexes have been spurred upward. The country is slowly emerging from a recession but evidentally the real estate market didn't feel much of a recession in St. John's, Newfoundland.

Housing starts rose to the highest since October 2008 in February, and the government-owned Canadian Mortgage and Housing Corp. predicted on March 2 housing starts will rise this year and next.

The Bank of Canada, which cut its main interest rate to a record low 0.25 percent in April, signaled on March 3 that it won't extend its pledge to keep interest rates at a record low through June.

Perhaps when rates begin to rise, we will note some slowdown in the escalating prices in St. John's, Newfoundland. And for the sake of all the first time home buyers, I hope they do.

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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!

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