"It never got desperate, not like what we've seen in some other parts of the country"
Newfoundland and Labrador stands tall as one of the few regions in Canada that has seen housing activity levels continue to exceed pre-pandemic levels, with sales in October alone remaining 3.1% above the five-year average and 10.9% above the 10-year average for that month.
And unlike other markets that are buckling under demand spurred by interprovincial migration, the region benefited from “primarily locals competing with locals,” according to Newfoundland-based mortgage broker Rob Jennings.
“There wasn’t a lot of foreign investment; there wasn’t a lot of immigration,” Jennings said in a recent episode of CMP Talk. “It never got desperate, not like what we’ve seen in some other parts of the country.”
The steady pace and the “relatively healthy” environment meant that Newfoundland and Labrador had no need for the existence of condition-free offers such as those seen in more active markets.
“We were confident that houses [here] could sell,” Jennings said. “Some people … could afford to carry two mortgages. I don’t think people here were doing anything out of desperation. It was just competitive, and it remained healthy – and I think we were probably better off because of it.”
How expensive is a home in Newfoundland and Labrador?
Having what is essentially the lowest residential purchase price for any major market in Canada is a significant boon for the province, Jennings said.
Data from the Newfoundland and Labrador Association of Realtors showed that in October, the region’s average home sale price was $287,489.
“We do have that low barrier,” Jennings said. “You can get a nice house for $300k. Looking at the national averages, you can get a lot more house in terms of bang for your buck.”
This proved especially helpful for first-time buyers during the last two years of the pandemic – and in turn, feeding into the market’s enviable robustness.
“We’re [poised to] finish 2022 with a pretty solid year-over-year number,” Jennings said, adding that this would impart “momentum into 2023.”
For a deeper dive into the market’s recent trends, click here.
