Housing sales have fallen in Newfoundland and Labrador, but the provincial Realtor association says prices aren’t expected to follow suit. (Alex Lupul/CBC)
Newfoundland and Labrador’s housing sales are starting to cool off, according to the annual report published by the provincial Realtor association.
The number of homes sold through the MLS system totalled 554 units in July, declining 21.1 per cent from July 2022. Year-to-date home sales totalled 2,712 units over the first seven months of this year, a decrease of 23.9 per cent from the same period in 2022.
“We’ve just come off of what I would call two uncharacteristically busy years, not only in Newfoundland and Labrador but right across the country,” Bill Stirling, chief executive officer of the Newfoundland and Labrador Association of Realtors, said Thursday.
“The pandemic years, for whatever reason, drove real estate activity right across the country. We’re starting to see those kinds of sales levels return to a more normal pattern.”
But even with sales starting to slow down, Stirling said, the province is still between 20 or 30 per cent above pre-pandemic years.
“So the market is still strong. There’s lots of demand out there,” he said. One of the challenges right now is relatively low inventory, he added. “People can’t sell what’s not there, so we’re seeing sales levels start to drop off.”
New home construction is also slowing, contributing to the lack of inventory.
Inflation has increased costs, Stirling said, making building a new home increasingly expensive.
Bill Stirling, CEO of the Newfoundland and Labrador Association of Realtors, says low inventory and population growth are keeping housing prices high. (CBC)
“The Bank of Canada wanted to cool the Canadian housing market, and they’ve been very successful in doing that,” he said.
“Interest rates are significantly higher than what they were a year ago, so that’s impacting first-time home buyers in what they qualify for in terms of a mortgage but it’s also making buyers kind of sit on the sidelines to wait until rates at least stabilize or start to come down.”
Stirling said demand is also starting to slow while Newfoundland and Labrador’s population has grown, which is raising prices.
The rest of country saw large price spikes after the pandemic hit that have since fallen by 20 to 30 per cent, Stirling said, but that hasn’t happened in Newfoundland and Labrador.
“Our situation has been one of slow, moderated, steady increase in values over the last three years. So it’s much more stable,” he said.
Home inflation
To look at the impact of inflation on home prices, the Realtor association uses its own metric, called the home price index — similar to the consumer price index, which measures inflation.
“In the St. John’s area, house values are about 16 per cent better now than they were three years ago. In much the rest of the province the growth has actually been stronger,” said Stirling.
“In central Newfoundland, compared to three years ago, our house values are about 25 per cent stronger, Labrador is about 36 per cent growth, Corner Brook and Humber Valley area, it’s about 32.5”
Housing values are up about 16 per cent from three years ago, says Stirling. (Mark Quinn/ CBC)
Stirling said housing prices are also directly affected by community activity, pointing to wind energy development and potential airport sale in the Stephenville area as an example. Housing prices in Labrador West also rise and fall on the value of iron ore, he said.
“When you’re thinking about what’s happening in your community or your region, that has the greatest impact on house values,” he said.
“We’ve seen some of the strongest growth over the last couple of years in non-urban parts of the province.”
For those hoping for housing prices to fall, Stirling said that likely won’t happen any time soon.
“We’ve heard lots of talk in the media in the last six months about the housing crisis and housing affordability issues — those are going to continue to be challenges for everybody,” he said.
“New home construction, if that doesn’t come back then we’ve got limited supply. I think all in all, I don’t see anything happening in terms of house prices coming down.”
Listen to the full interview:
CBC Newfoundland Morning6:10High interest rates have scored a hit on the province’s housing market, but things are still pretty hot for sellers. The head of the provincial association of realtors told us why
If you’ve been trying to buy a house this year, you know that in this province, it’s definitely a sellers’ market. But high interest rates and inflation have been making a dent in things this year. This week, the province issued its report on the most recent home sales. Bill Stirling is CEO of the Newfoundland and Labrador Association of Realtors.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
