Slowed local economy leads to price declines in the detached home segment
ST. JOHN'S , Jan. 13, 2016 /CNW/ - The Royal LePage House Price Survey1 and Market Survey Forecast2 released today showed slight year-over-year price declines in the detached home segment in St. John's , with the aggregate3 price of a home in the region declining 1.0 per cent year-over-year to $337,291 .
In the fourth quarter of 2015, the median price of a two-storey home fell 0.8 per cent year-over-year to $385,123 , while the price of a bungalow declined 1.5 per cent to $310,704 . During the same period, condominium prices remained relatively flat, gaining 0.8 per cent year-over-year to $299,718 .
"After a lengthy period of strong year-over-year increases, home prices have softened in the region as a result of weak oil prices and the slowed local economy," said Glenn Larkin , Realtor®, Royal LePage Professionals 2000. "Unit sales levels, however, remained flat compared to this time last year, despite projected decreases. The first-time buyer segment was relatively busy during the fourth quarter, helping to fend off notable declines in activity."
Looking ahead, Larkin predicts that home prices in the St. John's market will face further downward pressure over the winter months, noting that softness in oil prices and reduced consumer confidence are contributing to the anticipated weakness.