Localism: Saint Johns, NF

St. John's Real Estate Market Report

Mon, 20 Oct 2008 08:19:24 -0500

Third quarter average Newfoundland MLS residential house price surged 19% to $182,306 compared to $153,053 during the third quarter of 2007, with additional price growth expected throughout the remainder of this year and next. This third quarter surge comes after a stellar second quarter MLS stats. Average price is closer to $200,000 in St. John’s, Mount Pearl and Paradise.

MLS® sales advanced 11% to 1,695 units compared to last year’s third quarter sales of 1,529 units. The monthly break down for the third quarter: July, August and September MLS® sales were 610, 541 and 544, respectively.

Unprecedented demand for housing has driven active St. John's residential listings approximately 42% lower to the end of the third quarter. Active listings for July, August and September were 1,921, 1,693 and 1,524, respectively with new listings of 870, 632 and 744, respectively. New listings increased 6% during the third quarter, but the dramatic decline in active listings kept overall listings low.

There were 2,246 new residential listings during the third quarter compared to 2,120 during the same period last year. With sellers conditions, active listings averaged just 1,713 from July to September versus 2,756 during the third quarter of 2007.

Sales to active listings ratio hit 36% in September and averaged 33% during the third quarter versus 19% the third quarter of 2007.

Bank of Canada cut its rate 50 basis points (0.5%) October 8th, making it a full 2% in cuts since December 2007. Bank rate currently sits at 2.50% with the prime lending rate ranging from 4.25% to 4.35% at Canadian banks (as of October 17th). Quite possible that the Bank of Canada could cut its rate again by another 50 basis points by the end of this week lowering the lending rate to 2.00%

New home construction economic clause

Tue, 26 Feb 2008 19:15:58 -0600

There has been quite a debate around the "St. John's real estate water cooler" in recent weeks. Towards the end of 2007 some local builders and subdivisions in St. John's implemented a new "Economic Clause" to their contracts. Buyers have been noted to shy away from certain subdivisions and proceed to others that do not insert this clause. The debate is over whether this clause protects the buyer or the builder. Does it protect the buyer from an increase in purchase price of the house? Does it allow the builder the option to raise the price of the house prior to starting construction?

The clause states:

"This Agreement of Purchase and Sale is subject to the Vendor confirming to the Purchaser or the Purchaser's Agent in writing the final sale price on or before the expiry of 14 days prior to excavation of the dwelling. If no written confirmation of the final sale price is issued by the Vendor on or before the expiry of 14 days prior to excavation of the dwelling the Purchase Price referenced herein before shall be deemed to be the final sale price. If written notification of an increase in the final sale price is issued with which the Purchaser is not satisfied then this Agreement of Purchase and Sale shall be void and of no effect. Upon receipt of the written notice of the increased final sale price from the Vendor the Purchaser must acknowledge in writing within 72 hours their agreement with the increase in price, and failure to do so renders this Agreement of Purchase and Sale void and of no effect with the Vendor returning the Purchasers Deposit or down payment."

What are your thoughts on this clause? Are you in favor of the builder being protected or the buyer?

January Newfoundland Real Estate Stats

Sat, 02 Feb 2008 11:12:50 -0600

Total # of Listings [Jan] = 583 (Down 32% from January 2007)

Total # of Sales [Jan] = 266 (Up 53% from January 2007)

Number of Active Listings in the NLAR MLS System = 1902

Average Sale Price year to date = $170,552

Inventory is down again this month. With lots of buyers and lack of inventory, we are seeing most properties listed in St. John's receiving multiple offers. CMHC might be classifying our market as balanced in their Newfoundland MLS Trends Report for the 4th Quarter, but we are clearly heading into a sellers market for the early part of 2008.

Here is a break down by area for the month of January for single family homes

St. John's Real Estate: Listings = 76 Sales = 112 Sales/Listings Ratio = 68%

Average Sale Price: $185,886

Mount Pearl Real Estate: Listings = 18 Sales = 14 Sales/Listings Ratio = 78%

Average Sale Price: $173,200

Paradise Real Estate: Listings = 29 Sales = 15 Sales/Listings Ratio = 52%

Average Sale Price: $207,931

East Extern Real Estate: Listings = 21 Sales = 13 Sales/Listings Ratio = 62%

Average Sale Price: $177,123

Conception Bay Real Estate: Listings = 37 Sales = 15 Sales/Listings Ratio = 41%

Average Sale Price: $159,280

St. John's MLS Trends for 4th Quarter 2007

Sat, 02 Feb 2008 11:02:52 -0600

MLS® Residential Sales Post Record Fourth Quarter - MLS® sales surged 43 per cent to a record 1,326 units compared to last year’s fourth quarter sales of 926 units - October, November and December MLS® sales were 475, 497 and 354, respectively - Fourth quarter average MLS® residential house price jumped 11.4 per cent to a record $153,196 compared to $137,478 during the fourth quarter of 2006

Resale Market Returned to Balanced Classification
- The current sales-to-active listings ratio trend and other factors combined, suggest the Market is heading quickly to a sellers classification and already has in some neighbourhoods
- Average time-on-market trended lower during the quarter and price growth was very strong - A further firm reclassification to sellers will depend on first quarter 2008 results, but likely to occur based on current market trends

Active Listings Decline
- After climbing since 2003 and hitting a record high in July, active listings declined during the fourth quarter for the first time since the second quarter of 2004
- The supply of both new and active residential listings averaged 2,070 during the quarter compared to 2,216 a year ago
- New listings decreased 15 per cent, while active listings retreated 7 per cent compared to the fourth quarter of 2006

Click here for the full St. John's MLS Trends Q4 2007 including graphs.

Newfoundland Real Estate Outlook 2008

Sun, 20 Jan 2008 09:22:51 -0600

The outlook for Newfoundland Real Estate for 2008 will be positively supported by a strong provincial economy, with the average MLS® price forecast to increase 6.4% to $157,500. REMAX is suggesting a 12% increase which would put the average price around the $170,000 mark. The expected increase in single detached and two apartment homes can be seen already, and it's very early in the new year.
Currently we are experiencing low housing inventory and a high number of buyers. Now is the right time to sell your house for maximum value.

I recently read a review of average St. John's House prices from 2002 - 2008 (forecasted) from CMHC. Good to see the St. John's real estate market on the rise in recent years.

2002 - $113,081 2003 - $119,822 2004 - $131,499
2005 - $141,167 2006 - $139,542 2007 - $148,000

And forcasted for 2008 - $157,500

Want to keep up with the latest market news and trends in St. John's?

We invite you to visit our St. John's Real Estate Blog.