As the night closes in earlier and earlier, temperatures drop and we approach the end of October St. John’s housing prices are also cooling a little. In a recent visit to St. John’s, Gregory Klump, the chief economist with the Canadian Real Estate Association, said that “the Newfoundland housing market has officially peaked. The peak of the housing market in the rest of Canada occurred in 2007 and Newfoundland is gradually entering this phase of market fluctuation.

The market in this province has done very well recently with average prices reaching the second highest in Canada. House prices will flatten a little in 2009 but homes are expected to at least maintain their value.”

Local realtors and builders feel differently. In spite of the current world economic problems people are working, getting raises and if current enquiries mean anything a lot of folks are looking to buy a house. The goods and services sectors have been growing and more people have been able to buy a home. Young couples are coming out in droves to buy their first home despite the economic downturns and the end of 100% mortgages.

The initial spike in prices at the announcement of the Hebron deal has flattened out and it’s been business as usual down here.

The only real negative issues are those presented by the mainstream media. By often overstating the doom and gloom of the US markets the media are causing a decrease in consumer confidence. Much of what is reported is not evident in Newfoundland at the street level of day to day living.

So prices are levelling out, people are still earning a living and we at Reardon Construction and Development are still in the middle of a 200 unit housing development in Riverbend and Twin Brooks. No slow down here.

Perhaps Gary Reardon has the right idea:- “What I’ve done personally is turned off CNN. I’ve turned off Business Net and I stopped listening to economists on the stock market and since then my life has been fine.”

Happy Hallowe’en!!

Gary Johnston – Realtor

Prudential Reardon Realty

(709) 691-9853

gary.johnston@nf.sympatico.ca