CMHC held a seminar this week discussing the outlook for Newfoundland for 2009 with regards to economy and real estate market and prices.  As in most recent reports and news releases the message was the same: Newfoundland is expected to remain strong in 2009. While most of Canada and the world are in doom and gloom, somehow Newfoundland is expected to escape the mayhem.  I know we are somewhat protected being on an island, but I can't see St. John's getting away virtually unscathed.  Then again it's better to hear positive news then to hear the sky is falling on a daily basis. In a quote from The Telegram's article entitled "Local housing market, economy remain strong" Chris Janes was reported to say "It's still on the up and up locally in terms of our labour markets, economy, economic ... 03/05/2009

Standing boldly above the landscape where once the Fort Townshend stood, The Rooms looks alertly over old St. John's.  It is a modern piece of real estate like no other on the Island.  It houses the artifacts, archaeology and architecture of Newfoundland and Labrador.  Here at The Rooms, the archival records which preserve the heritage of Newfoundland and its people from centuries before are housed in a climate controlled environment ensuring they will be kept intact for generations to come.  This is where the Provincial Museum, the Provincial Art Gallery and the Provincial Archives have been brought together under one roof. My wife and I were delighted to have spent a day there in the summer of 2008 wandering through the many large rooms which display a multitude of impressive works of... 03/02/2009

According to the Senior Market Analyst with CMHC, the fourth quarter average MLS® prices in St. John's surged 27% to $193,529 compared to $152,160 during the fourth quarter of 2007, representing the only growth market in Canada.  Prices spiked in the 2008 as there were often multiple buyers for the same home leading to a bidding war which contributed to the significant rise in average prices for the year.  In light of this, real estate in St. John's, NL was one of the best places to have been invested in North America in 2008.     Thus far in 2009, market demand has weakened allowing for a more moderate pace of sales.  As well, inventory has began to rise and some prices which were set with the 2008 demand in mind have now started to decline.  But we are a long way from the buyers marke... 02/25/2009

Have you ever thought of going to the Far East?  I am not talking about the Far East from whence the wise men came with a caravan of gifts for Jesus.  I'm talking about the far east of North America where you can acquire the badge that says "I Have Seen the East and Really Lived!"  OK, perhaps there is no real badge, but there should be!  If there were, it would be awarded to those who had gone to the most easterly point in North America.  I have heard some in the media refer to the east coast of Canada as, wait for it....Halifax, Nova Scotia.  Perhaps they were unaware that in 1949 Newfoundland joined confederation and became part of the dominion of Canada.  I guess history is not a strong subject for some.  I have to admit, it was not my favorite either. The notion that Canada ends at... 02/24/2009

When we pass a car parked on the side of the road with the emergency lights flashing, most of us would stop to see if we can help, right?  Well, from what I observed today, it turns out that most of us keep on driving.  Generally, we think we have to for so many reasons.  Traffic might get jammed if we stop, we would be late for work, a meeting or shopping or school, it's far too cold, I'm not dressed for it, etc. etc.  We tend to rationalize that someone else is on their way to assist this person, so we don't really need to do anything.  Well today, I passed, yes me too because everyone else was doing it, a lady who had stopped on Prince Philip Drive, in St. John's, Newfoundland, with the emergency lights flashing.  You should know that this isn't the safest place in the capital city t... 02/10/2009

Negotiating for Real Estate in St. John's, Newfoundland is a skill well worth honing. Typically Real Estate transactions are formed as binding buy and sell agreements that must be negotiated by at least two parties.  A Purchase and Sale agreement is between a specific buyer and seller and as a minimum, lists the terms and conditions of the agreement, the parties involved in the transaction and the planned closing date.  While it is true that some folks would rather not haggle for anything (nice luxury for those who can afford it), negotiating is as important to Real Estate trading as writing the cheque on closing day.  But securing an agreement between two competing parties is often not as easy as said, especially if either party has had little or no negotiating experience.  But that's... 02/09/2009

We are into the third week of January and the most common real estate question I am being asked is "where will the housing prices be in 2009?" As in most years, it’s difficult to predict. Last year CHMC predicted 6% and RE/MAX stated at least 12%. I remember saying after the first quarter we’ll see much higher then 12%. The final tally for 2008 is not yet in but should be close to 23% in my opinion. Now….where do I see the St. John’s real estate market for 2009. Currently my mind is set at a 5% increase from 2008. How can I say this with the US housing market expecting to drop even more, Canadian markets are predicted to lower in some areas, and the UK, no real direct relation, but the world housing market seems to be taking a hit right now. It all boils down to consumer confidence, the... 01/18/2009

News release from Canadian Mortgage and Housing Corporation Urban housing starts posted solid growth during the month of December, according to preliminary data1 released today by Canada Mortgage and Housing Corporation (CMHC). December’s total housing starts posted 55 per cent growth, with 202 starts recorded throughout the St. John’s area versus 130 in December of 2007. An additional 24 housing starts were recorded in other urban areas across the province for a total of 226 provincial starts, an increase of 44 per cent. For the year, urban housing starts totaled 2,229 throughout the province, up 22 per cent. Within the St. John’s region, starts reached a 33-year high of 1,863 in 2008, a 26 per cent gain over the 1,480 starts posted in 2007. “Urban housing starts ended the year with co... 01/18/2009

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 1,9... 10/20/2008

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 prio... 02/26/2008

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 Sal... 02/02/2008

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 20... 02/02/2008

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 - $131,4992005 - $141,167      2006 - $... 01/20/2008

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 particularl... 01/14/2008

With all the new subdivisions in St. John’s and surrounding areas, it’s becoming a common question: “is this property covered under the Atlantic Home Warranty?” A follow up question is”what does it cover?” People hear about the Atlantic Home Warranty but it’s apparent they are unaware of the details. Atlantic Home Warranty offers a 7-year limited home warranty. This is automatically transferable and increases the value of your home. The warranty stays with the house, not the owner. The coverage details are listed below. Optional Deposit Protection, up to a maximum of $20,000. A guarantee that the Builder will repair eligible defects in workmanship or materials supplied by the Builder during the first year of ownership.Protection against major structural defects during the remainder of t... 01/13/2008

How much of a house you can afford depends on a number of factors. The most important are your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play. This calculation is based on two simple rules that lenders use to determine how much of a mortgage you can afford. The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees. Secondly, your entire monthly debt load s hould not be any more than 40% of your gross monthly income. This includes housing cos... 01/03/2008

The Globe and Mail printed an article on December 17, describing the recent boom in the Newfoundland Real Estate market. Dubbed “The Danny Williams Effect” after the recent Hebron offshore oil project, homes in St. John’s and surrounding areas (including Mount Pearl, Paradise, CBS, and Torbay) surged 68% from October to November. While it hasn’t been classified as a sellers market yet, the activity noticed from reduced inventory, multiple offers on homes and at times over asking prices in recent weeks, are clearly pointing in this direction. Inventory is down with pre-existing homes which leads buyers to the decision of building. The new construction market, which once had a 3 - 4 month start-to-finish time frame are booming and are quoting 6 - 8 months for a move in date. For buyers, t... 12/19/2007

Hebron-Ben Nevis announcement is going to jump-start the Newfoundland industry, and bring in billions during its life.  Employment in St. John's and area will increase bringing back Newfoundlanders currently working in Alberta.  Relocation to St. John's real estate market will certainly benefit.  The overall St. John's economy will surely boom in the next few years, including the St. John's, Mount Pearl, Paradise real estate market.  The Hebron asset, which consists of the Hebron, Ben Nevis and West Ben Nevis fields, was first discovered in 1981. Chevron Canada Limited is the operator for the Hebron project with a 28 per cent working interest. The asset is located in offshore Newfoundland’s Jeanne d’Arc basin and is approximately eight km north of the Terra Nova oilfield. Partners signe... 08/23/2007

St. John's, June 8, 2007 - Urban housing starts dipped in May, according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). For the month of May, total housing starts dipped 18 per cent, with 128 posted across provincial urban centres versus 156 during May of 2006. Of the 128 total starts, 124 were recorded within the St. John's region compared to 131 last May. Year-to-date total housing starts of 343, equals the number of starts posted during the same period last year within the St. John's region."Despite May's dip in total provincial housing starts, we are still on par with the overall level of residential construction activity recorded across the province last year," said Chris Janes, Senior Market Analyst with CMHC in Newfoundland and Labrador. "In... 06/11/2007

The MLS Sales Activity Report for the Eastern Region of Newfoundland and Labrador is out and, drum roll please, looks like first quarter residential sales are up over the same time last year.  Exhale. Fortunately for buyers but unfortunately for sellers the market has remained flat during the quarter will little to no increase in prices of average residential housing.  The market is firmly in Buyers hands with price growth to be minimal through the remainder of the year.  Good for some, not good for everyone.So they've said it - its a Buyers Market with a sustained increase in listings.  Translated that is one in eight homes have sold this quarter with longer days on the market and flat growth for 2007.  The good news is the supply of active listings especially from builders and contrac... 04/19/2007