Why Such a Big Prize
This past week CMHC (Canada Mortgage and Housing Corporation) presented their annual real estate review and projections for the coming year. Once it was all said and done the St. John’s CMA (Census Metropolitan Area) area walked away with the Oscar for Best Real Estate Market Picture.
· The only forecast in Canada that shows a positive growth in new construction into 2008 – 09
· In 2007 retail sales were higher than the national average, increasing 9.2% to $2.74 Billion
· The CMHC projected average price increase for MLS sales in the St. John’s CMA in 2008 is the most aggressive in Canada.
· Demographia International identified St. John’s as the fourth most affordable CMA housing market in Canada and the 5th in the world.
Why Such Opportunity
Based on the following points made by Chris Janes, CMHC’s Senior Market Analyst in the province, we can assume there will be opportunities aplenty for those willing and able to take advantage of the expected economic boom.
· Local economic growth will continue, creating solid growth in employment, personal incomes and consumer spending
· In recent negotiations on Hebron and the White Rose extension, Government took an equity position, ensuring long-term benefits for the province
· A lengthy list of mega-projects in energy and mining will sustain the future economic growth trend
o $4.7 billion dollar Southern Head Oil Refinery this year
o Inco’s $1 billion nickel processing plant in Long Harbour in 2009*
o $5 billion Hebron offshore oil project starting in 2011/2012
o Possible liquefied natural gas facility in Placentia Bay
o Late 2009 decision on the multi-billion dollar Lower Churchill development
* My note: Very recently Inco made an announcement that created some concern about the future viability of this project.
Call or email if you would like to discuss the real estate opportunities in this market. I'm also available to answer any questions you may have about St. John's Real Estate.
