St. John’s home prices rise in the Third Quarter: survey
The aggregate price of a home in St. John’s rose 4.7 per cent year-over-year in the third quarter of 2018, to $342,272, according to the Royal Lepage house price survey and market survey forecast.
When broken out by housing type, the realty company said median price of a twostorey home increased 5.8 per cent year-over-year to $382,420 in the third quarter. Over the same period, the median price of a bungalow increased 3.8 per cent to $311,427.
“Prices have marched steadily upwards compared to last year, but rising interest rates and the new mortgage stress test rules have dented demand,” said Royal Lepage salesman Glenn Larkin said in a news release. “We continue to see young people move away from the area in search of jobs, and when you combine that with the new challenges qualifying for a mortgage, St. John’s has really become a buyer’s market.”
Reduced demand has led to more inventory on the market, putting additional pressure on sellers.
“Affordability in St. John’s is good,” Larkin said. “As inventory rises, there’s a lot of choice for potential buyers.”
In the fourth quarter of 2018, St. John’s is expected to remain steady, with slowing demand and relatively flat home price appreciation, Royal Lepage said.
The Royal Lepage national house price composite, compiled from proprietary property data in 63 real estate markets, showed that the price of a home in Canada increased 2.2 per cent year-over-year to $625,499 in the third quarter. When broken out by housing type, the median price of a two-storey home rose 1.4 per cent year-over- year to $736,337, while the median price of a bungalow climbed 1.5 per cent to $519,886. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 6.7 per cent year-over-year to $441,240.
Royal Lepage is projecting a further uptick in home price appreciation in the fourth quarter, forecasting a 1.5 per cent increase in the aggregate price of a home in Canada over the next three months.