RE/MAX Newfoundland Spring Market Report 2015

St. John’s housing market had a brisk first quarter resulting in a 6 per cent increase in sales compared to the same period last year. Oil’s price volatility has slightly decreased consumer confidence. However, the region has made very significant price gains during the past ten years and off-shore oil companies like Hibernia are still hiring. The region’s population, income levels and employment levels are stable.

• Low interest rates and excellent selection of inventory are benefiting buyers

• Retirees are increasingly selling their houses and moving into rentals to release equity in their home

• Buyer activity among parents purchasing property for their university-age children is high

 

Condo Market

Entry-level condominiums have been popular with downsizers. Currently, there is ample supply offering excellent selection. Development projects, built to meet the demand caused by the oil industry, have resulted in high condo inventory. Building has been scaled back, reducing the number of new specs from 12 to 4.

First-time buyers

First-time buyers represent 50 per cent of the region’s market activity. A growing trend for first-time buyers in the region is buying in suburban areas that offer more space. A popular location is Conception Bay South, where young buyers can get a home for $240,000 if they are willing to do the 15 to 20 minute daily commute into the city.

Upper-End Market

The upper-end market is fairly active showing a modest year-over-year decrease in inventory. Quality listings are in demand as potential luxury buyers are proving resilient while other housing types are firmly in a buyer’s market. Low interest rates and stable professional employment are both significant drivers of demand.

Region is expected to stay in a buyer’s market throughout the remainder of 2015

• As oil prices stabilize, St. John’s housing market is also expected to stabilize

• Although the lower Canadian dollar has greatly enhanced American tourism to the area, the favourable exchange rate is not expected to draw US buyers to the region

• Potential provincial budget cuts, which are expected after the federal budget, are creating uncertainty in local market confidence

• RE/MAX’s 2015 average residential price expectation for St. John’s is unchanged and expected to remain flat

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Graphical view of the Average House Prices for the St. John’s Metro real estate area

March 2015 Average House Prices for the St. John’s Metro real estate market. #nlrealestate

March 2015 Average House Prices for the St. John's Metro real estate market. #nlrealestate(St. John’s Average housing prices MLS® Stats from March 2014 to March 2015)

 

St. John’s Real Estate Average House Prices for March 2015

 

St. John’s Average House Price for March 2015

Well the first quarter of 2015 is behind us and there hasn’t really been much movement with regards to the St. John’s Real Estate Average House Prices.  Typically we pick up in the spring time, so hopefully with the snow melting this once again holds true.  The media has been pumping a lot of negative about the real estate market and saying big words like “bubble” and “housing crash”.  I can not stress, this is far from the truth.  We are certainly not going to see any positive gains this year, but we certainly will not see huge negative numbers either.  There have been more homes over the 750k range sold thus far this year then all last year combined.  The St. John’s average house price will remain flat for 2015 and CMHC’s is predicting about the same for 2016.  st. john's real estate stats

Total # of MLS Listings = 942
Total # of Sales [Mar] = 318

Number of Active Listings for Sale in Newfoundland = 4491
Numbers are based on both residential and commercial listings/sales

Here is a break down by area for March:

St. John’s: Listings = 178 Sales = 72
Sales/Listings Ratio = 40%
St. John’s average house price: $304,884 for the month of March and the 12 month average $340,348

Mount Pearl: Listings = 30 Sales = 20
Sales/Listings Ratio = 67%
Mount Pearl Average house Price (12 month average): $290,855

Paradise: Listings = 34 Sales = 17
Sales/Listings Ratio = 50%
Paradise Average house Price (12 month average): $351,582

East Extern: Listings = 49 Sales = 24
Sales/Listings Ratio = 28%
East Extern Average house Price (12 month average): $406,325

Conception Bay South: Listings = 66 Sales = 14
Sales/Listings Ratio = 21%
CBS Average House Price (12 month average): $304,910

How does your home compare to the St. John’s average house price? For a free Market Assessment on your property please contact us.  We would be more then happy to assist you and show you how to get top dollar in this changing St. John’s Market.

For a Free Market Evaluation

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Sales jumped 16% for the month of March and are up 5% so far in 2015.  As I mentioned in last months February real estate stats review we saw a flurry of activity towards the end of the month and this pop in sales was quite possible.  Total listings are exactly the same as this time last year (actually on par the past 2 years). Once again we are seeing huge numbers of listings expire. 53% difference in listings last month compared to March 2014 and 40% increase in expired listings for the first quarter of 2015.