There are no “Sold” stickers left in St. John’s and Running Shoes Required

I think I should buy stock in Nike, Reebok or some other comfy shoe company.  My feet are tired; my pretty summer shoes have been tossed into the back seat of the car and there are no “sold” stickers left in St. John’s.

What’s happening?  Its no big secret, the provincial government signed a memorandum of understanding last August 2007 with several oil partners and since then the market has increased almost 35% in one year.  Recreational properties have increased almost 22% and I’ve gone begging and pleading to my office mates for a “sold” sticker I need to put on a house.  No one has any, not our office, not the local board office – everything is selling, and everything else is sold.

Now to say that prices have gone through the roof is not quite accurate, we still have the best prices for residential homes in Canada and probably still catching up to the mainland, but catching up we are.   And, fast. 

To add another twist into the mix, Canada Mortgage and Housing Corporation is cancelling/suspending its very popular 100% mortgage insurance for buyers by October 15, 2008.  This includes all buyers, first timers and more timers which has really put Realtors feet to the fire.  Anyone who qualified has to “get their ducks in a row” (not sure if that’s a Newfoundland term or not) by that time so that means run out and buy something/anything with a roof.  Some lenders have already pulled the plug and other lenders are closing the doors on this popular program by October 1.  Why?  Bankers and lenders have developed a conscience and don’t want us to get into the sub-prime mess happening below the 49th parallel.  Imagine that protecting us mere mortals – God bless them I say – thinking of us before themselves.  Not that Canada has hit a bit of a slump and that many of the Canadian banks invested heavily in the US mortgage market – no.  It’s for our own good like cod liver oil.

Townies (St. John’s men/women) are seeing the benefit of homeownership and the increasing values are moving quickly past the overpass with homes, vacation homes, and land appreciating at prices never seen before. 

Before I blow a hole in my Nikes – does any have a “sold” sticker?

Denise Brophy, ABR, ePro, CERC Relocation Specialist
www.MyNewfoundlandHome.com