Continued home price gains in St. John's driven by low supply and motivated buyers
ST. JOHN’S, October 13, 2022 – According to the Royal LePage House Price Survey released today, the aggregate price of a home in St. John’s increased 8.2 per cent year-over-year to $334,000 in the third quarter of 2022. During that same period, the median price of a single family home increased 8.3 per cent to $344,100, while the median price of a condominium increased 11.7 per cent to $322,500.
Sales activity has decreased from its historic highs of last year, yet the St. John’s area real estate market remains quite competitive for buyers. Continued low inventory from a lack of new listings coming onto the market, plus buyers motivated to transact before their locked-in mortgage rates expire, has resulted in tight market conditions.”
The St. John's area currently has about four months of inventory, which is historically low, relative to demand. Across the province, new listings currently total only roughly two thousand available for sale.
Buyers could face increases in interest rates again before the end of the year. Any move-up buyers will be looking to get a deal done quickly before their mortgage rates continue to increase.
New construction is still being slowed down as a result of supply constraints and the increased cost of materials and labour. Modest home price gains in St. John’s are expected to continue through the remainder of 2022, due to healthy demand and low inventory.
Nationally, the aggregate price of a home in Canada increased 3.3 per cent year-over-year to $774,900 in the third quarter of 2022. On a quarterly basis, the aggregate price of a home in Canada decreased 4.9 per cent; the second consecutive quarterly decline recorded. This is reflective of a continued softening of home prices in markets across the country. Royal LePage is forecasting that the aggregate price of a home in Canada will decrease 0.5 per cent in the fourth quarter of 2022, compared to the same quarter last year.
The forecast has been revised downward from the previous quarter, reflecting an expected flattening or modest decrease of prices through the remainder of the year, and following quarterly declines in a majority of Canadian markets in the third quarter. Of the report’s 62 regions, only four markets posted a quarterly aggregate home price increase in the third quarter (St. John’s, Charlottetown, Montreal South Shore, Saskatoon).
only four markets posted a quarterly aggregate home price increase in the third quarter (St. John’s, Charlottetown, Montreal South Shore, Saskatoon).
“September did not bring the typical seasonal lift in the number of homes trading hands in this country, a clear indication that our housing market continues to adjust to higher borrowing costs,” said Phil Soper, president and CEO of Royal LePage. “Home prices follow sales volume trends, which means we will see further softening in the final months of the year. Our revised outlook has national prices at just below where we ended 2021, erasing the gains made in the first quarter of 2022.”
The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home rose 2.0 per cent year-over-year to $806,100, while the median price of a condominium increased 6.1 per cent year-over-year to $566,100. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
Royal LePage Home Price Data:
Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q3-2022
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q3-2022
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the most common types of
housing, nationally and in 62 of the nation’s largest real estate markets. Housing values in the
Royal LePage House Price Survey are based on the Royal LePage Canadian Real Estate Market
Composite, produced quarterly through the use of company data in addition to data and analytics
from its sister company, RPS Real Property Solutions, the trusted source for residential real
estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.