While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today’s environment, with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

Very well maintained, fully developed bungalow in West End St. John's. Hardwood floors on living and dining room. Basement development consists of a kitchenette, family room, two bedrooms, full bath and and a propane fireplace. Stainless Steel water boiler. Nice landscaped back garden. Not far from MUN and close to all amenities. Asking price is $157,900. For more information and photos contact Fraser and Stephen Winters.

Check out the Virtual Tour of 12 Notre Dame Drive

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

While new home construction in Newfoundland and Labrador is booming, it is not uncommon now to see a six month closing date on new home construction. With a good percentage of the trades people presently working in Western Canada, some contractors are finding it difficult to recruit enough local trades people.

It is estimated that as much as10,000 Newfoundlanders and Labradorians are working out west for companies such as Syncrude, Suncor and Flint Energy, to name a few.

An estimated 4,000 are working on a rotational basis commuting to and from the province, bringing millions of dollars to local communities throughout Newfoundland and Labrador. Some of these commuters are staying in camps, where food, lodging and travel to and from the province are all fully paid.

Workers are drawn to jobs that often start above $100,000 per year and lots of overtime.

While it all may seem wonderful, it has to be a burden on the family structure with 20 days away and back home for 8 days of rest in a repeat cycle.

More good News from the Rock- Keep it coming

A proposed second oil refinery in Placentia Bay Newfoundland has met the requirements of the Environmental Protection Act and statement guidelines, and no further work is required.
Minister Charlene Johnson announced Thursday that an amended environmental impact statement meets the requirements The Newfoundland and Labrador Refining Corp., which has agreements with SNC-Lavalin and IJK Consortium of Japan for development, wants to build the refinery at Southern Head.
It’s expected it will process 300,000 barrels of heavy sour crude per day, starting in 2011. The project is expected to cost US$4.6 billion.

St. John's economy is growing quickly, and the city has been identified as having one of the highest proportion of scientists and engineers per capita of any city under one million population in North America. Economic forecasts suggest that the city will continue its strong economic growth in the coming years not only in the "oceanic" industries related to offshore oil,but also in tourism and new home construction as the population continues to grow.

This growth in St. John's and its surrounding suburban municipalities, particularly Paradise (+31%), Flatrock (+7%), Torbay (+15%), Conception Bay South (+11%) and Portugal Cove-St. Philip's (+12%) St. John's metro area: +5% population; The rest of the province: -1.5% population). Many feel that the growth in St. John's has not particularly spread to the rest of the Province.