St. John’s home prices expected to stabilize after major gains in recent years: Royal LePage

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The Royal LePage House Price Survey released today revealed that St. John’s real estate has the largest year-over-year price gains compared to all other major Canadian cities for the property types surveyed.

The average price of detached bungalows in St. John's increased significantly, up 14 per cent over last year to $228,025, while the average price for standard two-story homes rose 13.7 per cent to $313,775. Standard condominiums saw an average price gain of 12.3 per cent to $241,850.

"St. John's real estate has made incredible gains over the past few years," Glenn Larkin of Royal LePage Royal LePage Professionals 2000* said in a news released.

"However, even though St. John's  has posted strong year-over-year gains, we are starting to see the real estate market stabilize from the previous quarter. So although homes are worth more, we are not selling at the same pace we were last year and multiple offers are not as common.

"Currently the most active buyers are those looking to upgrade to the $350,000 range."

According to the survey, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double-dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.

"The year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year,”  said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions."

The Royal LePage House Price Survey highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca.

Organizations: Royal LePage House

Geographic location: St. John's, Canada

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  • Turry from town
    October 25, 2010 - 08:03

    Listening to a realtor talk about what is happening in that industry is like asking a fox about the henhouse.The reason house prices are so high in the avalon region is due to greedy developers and real estate agents driving the prices out of wack.