The St. John’s real estate market will continue to favour buyers in 2020, according to the 2020 RE/MAX Housing Market Outlook Report. The sale price expectation for St. John’s real estate market in 2020 is a decline of two per cent.
While the number of sales increased year over year, the average home price dropped 1.8 per cent from 2018 to 2019. Increased consumer confidence is bolstering the market after a multi-year decline, however buyer’s market conditions are expected to persist in 2020.
Affordability is always a topic of conversation, but the St. John’s real estate market offers greater affordability than many other major cities across the Canada. What a great opportunity to purchase your home or an investment property.
Consumer confidence is starting to increase and is expected to start to stabilize the market, particularly with the flurry of activity at the low end of the market and some offshore oil projects. However, an increasingly aging population, combined with migration to other parts of Canada, is bound to impact the St. John’s housing market at some point in the future.
Move-up and first-time buyers are expected to drive market activity in 2020, with the Galway subdivision expected to be in highest demand.
Any questions on the St. John's real estate market please contact me.
The number of homes sold in the region serviced by the Newfoundland and Labrador Association of REALTORS® was 400 units in September 2019. This was a 23.8% jump from September 2018 and was back in line with the five and 10-year averages for the month.
On a year-to-date basis, home sales totalled 3,006 units over the first nine months of the year, up 7.4% from the same period in 2018. It stood above 2017 as well.
Residential activity in the St. John’s real estate market was up by 39.1% (36 sales) on a year-over-year basis in September 2019, while activity in the rest of the province rose by 17.7%.
Single detached home sales in St. John’s rose by 24.5% from levels recorded in September 2018.
Nationally, home sales activity rose by 15.5% from year-ago levels in September 2019.
The average price of homes sold across all of Newfoundland and Labrador in September 2019 was $238,403, down 6.4% from September 2018.
The more comprehensive year-to-date average price was $241,214, down 4.6% from the first nine months of 2018.
The national average price, by comparison, rose 5.3% on a year-over-year basis to $512,501 in September 2019.
The dollar value of all home sales in the province for September 2019 was $95.4 million, rising 15.9% from the same month in 2018.
There were 903 new residential listings in September 2019. This was down 7.5% on a year-over-year basis.
Overall supply of homes on the market remains historically elevated. Active residential listings numbered 5,506 units at the end of September. This was down 4% from the end of September 2018.
Months of inventory numbered 13.8 at the end of September 2019, down from the 17.8 months recorded at the end of September 2018 but above the long-run average of 11.7 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Comparing September 2019 stats to August 2019 St. John's real estate stats we are still seeing an uptrend in the local market.
Contact me for all the latest updates and stats and market trends for the St. john’s Real estate market.
Residential activity the St. John’s real estate market was up 1.5% on a year over year basis in August 2019 but activity in the rest of the province rose by 12.5%.
The number of homes sold in the region serviced by the Newfoundland and Labrador Association of REALTORS® totaled 480 units in August 2019. This was up 9.1% from August 2018 and was the strongest sales figure of any month in two years.
On a year-to-date basis, home sales totalled 2,606 units over the first eight months of the year, climbing 5.3% from the same period in 2018 and stood above 2017 as well.
Single detached home sales in the St. John’s real estate market declined 7.4% from levels recorded in August 2018.
Nationally, home sales activity rose by 5% from year-ago levels in August 2019.
The average price of homes sold across all of Newfoundland and Labrador in August 2019 was $236,242, down 9.5% from August 2018.
The more comprehensive year-to-date average price was $241,646, 4.3% below the first eight months of 2018.
The national average price, by comparison, rose 3.9% on a year-over-year basis to $493,448 in August 2019.
The dollar value of all home sales in the province for August 2019 was $113.4 million, edging down 1.3% from the same month in 2018.
There were 971 new residential listings in August 2019, a 7.7% decline on a year-over-year basis.
Overall supply of homes on the market in the St. John’s real estate market remains historically elevated but appears to be topping out. Active residential listings numbered 5,830 units at the end of August but this edged down 1.2% from the end of August 2018.
Months of inventory numbered 12.1 at the end of August 2019, down from the 13.4 months in August 2018. This is still above the 10-year average of 10.4 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Contact me for all the latest updates and stats and market trends for the St. john’s Real estate market.
We frequently are asked from home owners (as well as some buyers) what is the difference between an appraisal and the assessment value of a property?
The two are completely different and are used for different reasons. They have no correlation to each other at the current time.
St. John’s Property Assessment Value
The municipality you live in will have an assessed value on your home. This value is how they calculate your annual property tax. Assessment figures however, are nothing more than a gauge or price line guide for a city or town to collect an appropriate amount of taxes from those that reside in the community. The official nature of this may encourage you to rely on the assessed value of your home for pricing purposes, which could be a big mistake. Real Estate assessed value almost always has no correlation to current market value. One of the biggest problems with the assessed value is that it is often not current. Municipalities will usually assess value once every 1-3 years. The market can change substantially during this time frame. VERY rarely is your property assessment value over the appraisal or market value. If it is, there are measures you can take for a re-assessment of your home. In St. John’s The ‘Assessment Act 2006’ is the legislative authority governing assessment and taxation in the City.
How are the property taxes calculated in St. John’s?
For the taxation year 2015, residential property tax is calculated at the rate of 8.1 mils, or 0.81 per cent of a property’s total assessment. A property with a total assessed value of $100,000 would be charged an annual property tax of $810, calculated as follows:
Assessed Value = $100,000
X Mil Rate = .0081 (8.1 Mils)
Annual Tax = $810
The water tax portion is a separate flat rate of $615 / yr
To search for your property assessment value for St. John’s click here.
To search for all other municipalities outside St. John’s visit the Municipal Assessment Agency
An appraisal is a method of valuation that compares similar properties in a similar area usually within a shortened time frame. This is similar to a REALTORS® Comparative Market Evaluation (CMA) but not as in-depth. While both are using essentially the same information, they can vary depending on the property, location and appraiser/REALTOR®. Sellers can be very fixed on this figure, especially when it benefits them. (think refinancing) The problem with a high appraisal value is that it can be an unreliable means of what the value really is today’s market. Nothing worse then over pricing your home to list. Just because you have listed your home with the an appraisal in place or not, true market value is what a buyer is willing to give and a seller is willing to accept.
Contact me if you have any questions
Stephen Winters is a second generation Realtor® and has been with RE/MAX since 2003. Growing up and being active in St. John's he knows the area.
You will find his approach down to earth and realistic using the latest technology as well as old fashion service.
Stephen Winters prides himself in providing a wealth of real estate information and market statistics to help his clients learn more about buying and selling real estate in St. John's, Newfoundland.
You turn on the television and watch a news story about real estate house prices going down in St. John’s. Then you receive a flyer in the mail about a property around the corner that sold for a decent price. Next you read a newspaper article about the St. John’s real estate market on the upswing again.
It’s a little like being on a roller-coaster ride!
Unfortunately the ride isn’t much fun if you’re thinking of buying or selling a home. In fact, it can be very confusing and frustrating. You just don’t know if “now” is the right time to make a move.
In reality, the housing market has been fluctuating for decades. Yet, people sell their homes every day throughout the St. John’s Metro Area for good prices. As well, just as many people get into their next dream homes affordably.
When you hear news of market fluctuations, there are two important things to consider.
First of all, a lot of media information about the housing market is national, or at least regionally for bigger cities. If the housing market is trending up or down nationally, remember that it doesn’t necessarily mean that the St. John’s real estate market is doing the same. This can even be relative to some subdivisions. (ie Southlands or Clovelly Estates etc)
In fact, it’s entirely possible for housing prices to be rising in your neighbourhood while they are falling nationally, and vice versa.
Secondly, if you’re selling a current property while buying another home, then the net effect of market fluctuations may cancel out.
Say, for example, that the St. John’s market is on the upswing. You’ll probably be able to sell your current home for a good price. However, the home you purchase will likely also be priced to reflect the upswing.
The same holds true when the market is down.
All that being said, there are some circumstances in which you need to consider market fluctuations when deciding whether or not to make a move. A good REALTOR® will help.
Looking for a good REALTOR®? You have three to choose from. Give us a call and we’ll be happy to answer all your questions. Check out September 2019 St. John’s Real Estate Stats