Resilient consumer spending, large capital projects and employment growth will continue to support the St. John's region housing market throughout the remainder of 2010 and in 2011, according to Canada Mortgage and Housing Corporation's (CMHC'S) Housing Market Outlook - St. John's report, released today.
According to a news release, housing starts are expected to end 2010 at 1,775 units, with 1,900 starts forecast for 2011. The resale or MLS(R)(1) market will post 3,650 sales by the end of this year and reach the 3,600 level in 2011. The average MLS(R) house price is expected to end 2010 at $245,000 compared to $218,862 in 2009 and increase to $255,000 in 2011.
"Despite the recent global economic uncertainty, strong fundamentals will continue to support demand for housing throughout the remainder of 2010 and in 2011," said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. "Overall, the positive outlook for the St. John's area housing market will be reinforced by favourable trends in demographic and economic fundamentals, as well as on-going economic momentum fuelled by a lengthy list of major capital projects."
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.
Continued growth expected in St. John's housing market: CMHC
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Published on
May 19, 2010
- Published on July 1, 2010
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Staff ~ The Telegram
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Comments
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- Dave
- - July 2, 2010 at 15:05:14
Mark and Mike, sorry to tell you but there are lots of us who can afford the house prices and furniture to match. Not sure what you guys did, but two degrees can do a lot you ya these days.
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- dawn
- - July 2, 2010 at 15:05:04
So , yes all of these houses are being built, but did anyone think about where the infrastructure is coming from to support all of these homes? eg water supplies. when the summer hits, we are not allowed to wash cars or flowers and it has nothing to do with lack of rain, it has to do with the lack of water. All of these homes are being built and are they coming up with more water supplies? No these houses are feeding off of the same as the ones we use !!I think something needs to be done about this as well
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- Mike
- - July 2, 2010 at 14:56:23
Increasing housing prices without the matching wages can only lead to the economy going downhill. Alot of these people will be House Poor and have no extra income for anything else . I think in 10 years or so we'll see alot more run down houses as people won't have the disposable income to maintain their properties.
I get the feeling alot of people will be in over there heads -
- J
- - July 2, 2010 at 14:54:38
I feel that it's the Real Estate agents buying these homes and renting them out.
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- Mark
- - July 2, 2010 at 14:49:49
Dawn, you have brought up a very important point which will be front and center in late summer, at which point the city council will act as if they are shocked and surprised we have no water. What gets me is developers make lots of money while we lose water we once had. I feel like Im being robbed more and more each year, and because the council seems to be doing nothing about it, they are complicit by non-action.
Mike, there are already a few areas around which were considered nice areas with nice homes when they first went up. As time went by, many of these homes are now in serious need of repair, and because there are so many of them in dilapidated condition, one would speculate the owners are house poor. I.E. Admiralty Wood in Mount Pearl and Trail's End in Paradise. I remember looking at many homes in those areas and was disappointed in the condition of almost every single one when I was in the market and was considering an existing home. -
- Jon
- - July 2, 2010 at 14:48:41
Mark, there are more people moving here from outside the province. I see it in my work as people are moving here mostly from NB and ON. It will be interesting to see updated population data for St. John's and the province as a whole.
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- Calvin
- - July 2, 2010 at 14:48:22
I think you are close to being right Mark, there will be abandoned slums in the city before long as people move into new homes and older homes go un-occupied. I would like to know what the city/province is doing to accomodate all this housing with regards to schools, hospitals, (I would say shopping centres but we know we have enough of those), doctors, dentists, community centers, parks, etc. My child is starting school in September at Roncalli in Airport Heights and they have to put one of the kindergarten classes in the school cafeteria to accomodate all of the students. Airport Heights has about 400 new homes going up in the next 2 years. At a provincial estimate of 1.2 children per household that is 480 new kids in the area. Let's say 1/4 of them are going to be of the age to be attedning Roncalli, that means the school has to find room for another 120 children in the next few years. They asked the government for 10.5 million dollars to upgrade the facility to adjust for the growth in the area, and the government gave them 2.5 million. This allows them to add 4 new classrooms and upgrade the existing washrooms. No expansion to library, computer or cafeteria facilities, not to mention the horrid excuse for a parking lot sitting in front of the building. I use all of this as an example, I am sure that most of the schools in the Avalon region are in the same predicament. The provincial government recently stated that the children are our future, but they are not doing anything to assist in the prosperity of that future. Urban sprawl and an inability to manage social resources will be the downfall of Newfoundland and Labrador, in a future where prosperity and economic stability are touted as being sure things, unless something si done to correct these growing mistakes. The municipal, provincial and federal governments need to acknowledge these issues in Newfoundland, and other parts of the country, before Canada takes the turn into the same pitfalls that currently entrench the U.S.
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- Mark
- - July 2, 2010 at 14:46:03
Dave from NL are you saying two degrees means the same number of people (same population) are buying these new homes but keeping their old ones ? That seems wasteful if there is no one to occupy them, unless they are, which means the old homes are abandoned and those people with two degrees are creating slums. Sorry Dave, I'll go with Jon from St. John's, NL's answer since it has more common sense and is not ridden with poor spelling and grammar like yours is - from a person with two degrees. (Where do these people come from ?)
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- Mike
- - July 2, 2010 at 14:40:40
What kind of Jobs do these people have to afford a $250 000 home? And most of these homes need work. Do they not have furniture?
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- Mark
- - July 2, 2010 at 14:40:18
Where are these people coming from ? Or are there that many abandoned old homes around the city as people buy new ones ? Are we creating slums ?
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- Dave
- - July 1, 2010 at 21:55:10
Mark and Mike, sorry to tell you but there are lots of us who can afford the house prices and furniture to match. Not sure what you guys did, but two degrees can do a lot you ya these days.
-
- dawn
- - July 1, 2010 at 21:54:55
So , yes all of these houses are being built, but did anyone think about where the infrastructure is coming from to support all of these homes? eg water supplies. when the summer hits, we are not allowed to wash cars or flowers and it has nothing to do with lack of rain, it has to do with the lack of water. All of these homes are being built and are they coming up with more water supplies? No these houses are feeding off of the same as the ones we use !!I think something needs to be done about this as well
-
- Mike
- - July 1, 2010 at 21:43:17
Increasing housing prices without the matching wages can only lead to the economy going downhill. Alot of these people will be House Poor and have no extra income for anything else . I think in 10 years or so we'll see alot more run down houses as people won't have the disposable income to maintain their properties.
I get the feeling alot of people will be in over there heads -
- J
- - July 1, 2010 at 21:40:27
I feel that it's the Real Estate agents buying these homes and renting them out.
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- Mark
- - July 1, 2010 at 21:32:08
Dawn, you have brought up a very important point which will be front and center in late summer, at which point the city council will act as if they are shocked and surprised we have no water. What gets me is developers make lots of money while we lose water we once had. I feel like Im being robbed more and more each year, and because the council seems to be doing nothing about it, they are complicit by non-action.
Mike, there are already a few areas around which were considered nice areas with nice homes when they first went up. As time went by, many of these homes are now in serious need of repair, and because there are so many of them in dilapidated condition, one would speculate the owners are house poor. I.E. Admiralty Wood in Mount Pearl and Trail's End in Paradise. I remember looking at many homes in those areas and was disappointed in the condition of almost every single one when I was in the market and was considering an existing home. -
- Jon
- - July 1, 2010 at 21:30:14
Mark, there are more people moving here from outside the province. I see it in my work as people are moving here mostly from NB and ON. It will be interesting to see updated population data for St. John's and the province as a whole.
-
- Calvin
- - July 1, 2010 at 21:29:41
I think you are close to being right Mark, there will be abandoned slums in the city before long as people move into new homes and older homes go un-occupied. I would like to know what the city/province is doing to accomodate all this housing with regards to schools, hospitals, (I would say shopping centres but we know we have enough of those), doctors, dentists, community centers, parks, etc. My child is starting school in September at Roncalli in Airport Heights and they have to put one of the kindergarten classes in the school cafeteria to accomodate all of the students. Airport Heights has about 400 new homes going up in the next 2 years. At a provincial estimate of 1.2 children per household that is 480 new kids in the area. Let's say 1/4 of them are going to be of the age to be attedning Roncalli, that means the school has to find room for another 120 children in the next few years. They asked the government for 10.5 million dollars to upgrade the facility to adjust for the growth in the area, and the government gave them 2.5 million. This allows them to add 4 new classrooms and upgrade the existing washrooms. No expansion to library, computer or cafeteria facilities, not to mention the horrid excuse for a parking lot sitting in front of the building. I use all of this as an example, I am sure that most of the schools in the Avalon region are in the same predicament. The provincial government recently stated that the children are our future, but they are not doing anything to assist in the prosperity of that future. Urban sprawl and an inability to manage social resources will be the downfall of Newfoundland and Labrador, in a future where prosperity and economic stability are touted as being sure things, unless something si done to correct these growing mistakes. The municipal, provincial and federal governments need to acknowledge these issues in Newfoundland, and other parts of the country, before Canada takes the turn into the same pitfalls that currently entrench the U.S.
-
- Mark
- - July 1, 2010 at 21:25:52
Dave from NL are you saying two degrees means the same number of people (same population) are buying these new homes but keeping their old ones ? That seems wasteful if there is no one to occupy them, unless they are, which means the old homes are abandoned and those people with two degrees are creating slums. Sorry Dave, I'll go with Jon from St. John's, NL's answer since it has more common sense and is not ridden with poor spelling and grammar like yours is - from a person with two degrees. (Where do these people come from ?)
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- Mike
- - July 1, 2010 at 21:16:49
What kind of Jobs do these people have to afford a $250 000 home? And most of these homes need work. Do they not have furniture?
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- Mark
- - July 1, 2010 at 21:16:13
Where are these people coming from ? Or are there that many abandoned old homes around the city as people buy new ones ? Are we creating slums ?
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