Tina Mak, Burnaby/BC real estate: Newfoundland Market Update

Newfoundland and Labrador

Western Newfoundland 2011

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Eastern Newfoundland 2011

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Central Newfounland 2011

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Newfounland Fall 2011

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Second Quarter Report

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Edwina Baldwin(Click here to email agent)
Coldwellbanker PRO Co.

May 2011

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May Housing Starts

ST. JOHN’S, June 8, 2011 – Housing starts in the St. John’s region were flat during the month of May, according to preliminary data1 released today by Canada Mortgage and Housing Corporation (CMHC). May’s housing starts totaled 223 units throughout the St. John’s area compared to 215 units in May of 2010. There were ten additional starts recorded in urban centres outside the St. John’s area, for a total of 233 provincial urban housing starts. Year-to-date, urban starts are down 17 per cent, with 561 posted
province-wide.

“Single-detached construction activity declined considerably in May, but was offset by a significant increase in multiple housing starts in the form of condos in St. John’s,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “The
trend towards lower levels of construction activity continued, with the single-detached segment down 27 per cent to 367 units compared to the first five months of last year,” added Janes.

In urban centres across Canada, total housing starts recorded in May were down seven per cent to 15,025 units compared to 16,178 a year ago. Single-detached starts declined 23 per cent to 6,005 units, while multiple starts increased seven per cent to 9,020 units in May. In the Atlantic region, 848 new homes were started compared to 1,137 during
May 2010.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports,
analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Information provided by
Edwina Baldwin(Click here to email agent)
Coldwellbanker PRO Co.

February 2011

January Housing Starts for the St. John’s Area

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ST. JOHN’S, February 8, 2011 – Housing starts in the St. John’s region were flat during

the month of January, according to preliminary data1 released today by Canada

Mortgage and Housing Corporation (CMHC). January’s housing starts totaled 105 units

throughout the St. John’s area compared to 104 units in January of 2010. There were

four additional starts recorded outside the St. John’s area, for a total of 109 provincial

urban housing starts compared to 113 last January.

“An 18 per cent increase in single-detached housing construction was offset by lower

multiple unit starts activity during January,” said Chris Janes, senior market analyst with

CMHC in Newfoundland and Labrador. “While starts activity is expected to come off

record highs, continued growth in employment, income and population will remain

supportive of the local housing market this year,” added Janes.

In urban centres across Canada, total housing starts recorded in January were down six

per cent to 9,773 units compared to last year’s total of 10,438. Single-detached starts

declined 28 per cent to 3,463 units, while multiple starts increased 13 per cent to 6,310

units in January. In the Atlantic region, 480 new units were started in January compared

to 441 units during the same period in 2010.

As Canada's national housing agency, CMHC draws on more than 60 years of

experience to help Canadians access a variety of quality, environmentally sustainable

and affordable homes. CMHC also provides reliable, impartial and up-to-date housing

market reports, analysis and knowledge to support and assist consumers and the

housing industry in making vital decisions.

1 Figures for the most recent month are preliminary and subject to revisions due to corrections or updates
from quarterly enumeration or sampling results.

For more information, visit www.cmhc.ca or call 1-800-668-2642.
Information on this release:
Chris Janes
Senior Market Analyst
CMHC Market Analysis Centre
(709)772-2403
Cell: (709)743-4636
cjanes@cmhc-schl.gc.ca

October 2010

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Housing Market Activity Cooled during Third Quarter

Recent price growth and an increasing supply of unsold homes had a cooling effect on the St. John’s area housing market during the third quarter, despite growth in population, income and employment. During the July to September period, new home construction activity declined slightly, while resale market activity remained mixed, with sales declining and average price advancing. From an overall historical perspective, the St. John’s area housing market was strong, but recent record housing market activity went unmatched in the third quarter.

New Home Construction Declined Slightly

Residential construction activity declined slightly throughout the St. John’s area during the third quarter of 2010, while new home prices continued to advance compared to the third quarter of 2009. Total housing starts were down approximately three per cent, with 506 starts versus 524 in 2009’s third quarter. There were 415 single-detached starts versus 422 during the third quarter of last year. In terms of multiple housing starts activity, there were 91 starts during the quarter compared to 102 a year ago. At the submarket level, however, starts activity was more mixed. St. John’s City had a 30 per cent decline in new construction, with 165 starts versus 237 in 2009’s third quarter, while Torbay saw starts decline from 31 to 25 units. Paradise saw the largest increase across all municipalities, recording 129 starts versus 102 a year ago. Mt. Pearl had 30 housing starts versus 27 during 2009’s third quarter; Conception Bay South (CBS) recorded 78 starts compared to 72 last year; while the remainder of the CMA posted 79 starts compared to 55 a year ago.

Price appreciation continued, with the average new house price increasing in all submarkets, except Torbay. The overall average price for the St. John’s CMA was $341,133, an increase of 18 per cent compared to $288,539 recorded during the July to September period last year. Compared to the average new home price in the second quarter of $323,602, price growth has begun to moderate and likely peaked early in the third quarter. Average sale price and growth were highest in the

St. John’s City submarket at $365,349 and 24 per cent, respectively. CBS posted an average new house price of $295,480 during the quarter, up 20 per cent; Paradise saw a 14 per cent gain to $348,882; Mt. Pearl hit $294,855, up 23 per cent; while the average price of a new home surpassed the $333,000 mark in the Remainder of the CMA, for an increase of 17 per cent versus the third quarter of last year. The only price decline was in Torbay, where the average price of $314,115 represented an eight per cent decline. Throughout the St. John’s CMA, approximately 47 per cent of all new single-detached homes sold for more than $300,000 during the quarter. The fastest growing part of the market was in the $350,000 to $399,999 segment, which increased to 16 per cent of total new home sales from seven per cent a year ago. Overall, new home prices posted large increases over the third quarter of 2009, but are expected to have peaked for 2010.

Resale Market Favoured Buyers

Fewer sales and increased inventory, positioned the market as buyers during the third quarter. In terms of resale market dynamics, buyers had a broader choice of available homes and some sellers were forced to reduce the asking price on their properties as the market shifted. Available inventory increased approximately 16 per cent in the quarter (23 per cent in August) and listings remained on the market for an average of 61 days, while prices continued to show gains over the July to September period of 2009. Despite higher inventory, offers came in at approximately 98 per cent of asking price. For the St. John’s area, there were 1,785 new residential listings during the third quarter compared to 1,795 during the same period in 2009. Active listings averaged 1,796 a month during the quarter, versus 1,548 a month during the third quarter of 2009. The sales-to-active listings ratio averaged 20 per cent during the quarter compared to 26 per cent during the same period in 2009, resulting in buyers’ resale market conditions.

MLS® Sales Declined, Prices Advanced

With fewer sales of existing homes and higher inventory available throughout the St. John’s area during the third quarter, the average MLS® residential price showed little change compared to the second quarter, but continued to advance compared to the same period last year. It reached another record level in the quarter peaking at $262,316 in the month of August. The number of MLS® sales declined 11 per cent with 1,069 sales compared to 2009’s third quarter sales of 1,197 units. The average MLS® residential price in the St. John’s CMA was 15 per cent higher than it was a year ago. Despite tepid sales activity during the July to September period, the average MLS® residential price climbed to $255,496 compared to $221,253 during the third quarter of 2009. The average price appears to have stabilized around the $250,000 level, as the recent momentum has begun to wane. The relative strength in the average MLS® residential price continued to be supported by positive economic conditions, as well as higher priced newly built home sales going through the MLS® system in the third quarter.

At the provincial level, there were 1,323 MLS® sales compared to 1,504 in the third quarter of last year. The average MLS® residential price in Newfoundland was $238,285 during the July to September period – an increase of 15 per cent.

Information provided by
Edwina Baldwin(Click here to email agent)
Coldwellbanker PRO Co.

September 2010

August Housing Starts in the St. John’s Area

ST. JOHN’S, September 9, 2010 – Urban housing starts increased during the month of August, according to preliminary data1 released today by Canada Mortgage and Housing Corporation (CMHC). August’s housing starts totaled 179 throughout the St. John’s area versus 151 starts in August of 2009. There were 18 additional starts recorded outside the St. John’s area, for a total of 197 provincial urban starts compared to 190 last August. Year-to-date, starts remain positive, with 1,177 recorded in the St. John’s region versus 1,026 last year.

“The number of new homes started in August is in line with the current forecast and the expectation that new home construction will slow over the remainder of 2010,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “New home demand was steady during the first half of 2010, but will taper off in the coming months, due to recent price growth and record high home prices,” added Janes.

In urban centres across Canada, total housing starts increased 12 per cent with 14,253 recorded in August compared to 12,734 during August of 2009. Throughout Atlantic Canada, there were 847 urban housing starts posted versus 907 the previous August, a
decrease of seven per cent.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing
market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

Read the full article with statistics here.

Information provided by
Edwina Baldwin(Click here to email agent)
Coldwellbanker PRO Co.

Economic Update

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* The Department of Foreign Affairs and International Trade Canada (DFAIT) recently announced a new national ocean technology initiative to be based in St. John's.

* Bit Trap Studios, a start-up developer of online games, is establishing a studio in St. John's and developing a new product with the assistance of $300,000 from the Government of Newfoundland and Labrador.

* A recent survey says St. John's has the lowest vacancy rate for both office and industrial space and the highest rental rates in Atlantic Canada.

* The seasonally adjusted unemployment rate for St. John's metro decreased by 0.9 points to 7.4% in February 2010.

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Coldwellbanker PRO Co.

May 2008

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Coldwellbanker PRO Co.

From RBC's Special Report on Housing Affordability across Canada published March 2008:

Atlantic - broad-based improvements ahead

Affordability continued to deteriorate in the final quarter of 2007 but we are still forecasting some modest improvements across all types of home segments in 2008. Housing markets across the region are cruising along at a healthy speed with markets generally balanced. The improvements are expected to stem from the combination of decent income growth, moderate house price gains, and anticipated mortgage rate relief. House price growth should moderate into the midsingle digit range and construction is expected to taper down. Softer markets are likely to gradually tilt the balance in favor of buyers over sellers. Newfoundland was the regional outlier toward the end of 2007. The market heated up late last year as a result of tight supply and rising prices in the St. John's market. However, it is also expected to join the Atlantic region in an overall cooling in 2008.