The seller's market has certainly ended. Inventory has increased approximately 30 per cent and listings are taking longer to sell or expire (never sell during their contract period).
The St. John's real estate market boomed during 2008, driven mostly by optimism created by the Newfoundland Government budget surplus, the Hebron oilfield announcement, and the Vale Inco Hydromet in Long Harbour. In light of this, speculating buyers purchased homes from all price ranges in fear of property values zooming sky high. The market cooled after the third quarter peak in 2008 and remained cool during the first quarter of 2009 causing the seller’s market to weakened into balanced market by the end of 2008.
Prices, however, remain quite stable even during our current cooling market conditions. According to Stats Canada, new housing prices in the capital city area increased by 0.4 per cent in March compared to February.
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