Economy Report says home values in area increased by 63 per cent in 10 years
A cluster of sold homes in Millidgeville. The price of an average home in the local area increased to $140,544 last year, says Re/Max.
Derwin Gowan
Telegraph-journal
Appeared on page C4
SAINT JOHN - Don't take the wrong message from figures on January home sales, says Saint John realtor Gordon Breau.
The New Brunswick Real Estate Association reports total MLS sales in New Brunswick at $59.7 million last month, five per cent below the $63.1 million in January 2007.
"It's the weather in January and February," said Breau, president of Re/Max Professionals Saint John Inc. "I have a feeling March-April will be a catch-up month," he said, especially in the Saint John region.
The price of the average home in this area increased to $140,544 last year from $86,171 in 1997, Re/Max reported in its Decade in Review 1997-2007 report on Canadian housing prices.
That adds up to a an increase of 63.1 per cent over the decade, an annually compounded rate of 5.013 per cent.
That looks healthy, but the report says that Canada-wide home prices increased to an average of $307,265 from $154,606, an increase of 98.7 per cent over the decade or 7.11 per cent compounded annually.
These numbers mean that Saint John remains an affordable place to buy a house, Breau said. He compared Saint John to Edmonton, where prices increased 203.5 per cent over the decade and 11.74 per cent compounded annually, to $338,636 over the same decade.
He credits the more moderate increase here to the availability of housing in the Saint John region.
In this region 2,253 homes sold last year, up by 76.8 per cent from 1,274 in 1997.
Edmonton recorded higher gross numbers but the number of homes changing hands increased by only 56.9 per cent. In Winnipeg total home sales increased by only 11.7 per cent. Nationally sales increased by 57.3 per cent.
The Re/Max report places Saint John near the bottom of the list in terms of house prices, near the top in terms of the increase in total number sold over the decade. "In Saint John we're still getting a really good deal," Breau said. "Right now Saint John is a very affordable place to live; although prices are going up it is still a good thing to get into."
The growing economy drives housing prices upwards in the Saint John region, while the availability of land both in the city and the suburbs moderates the increase, Breau said.
Major retailers show their confidence in Saint John and region by building stores here, Breau said. "It's quite obvious they've looked at Saint John and think it's going to grow."
He said that low unemployment, consumer confidence, a growing industrial economy, low interest rates and aggressive marketing by mortgage lenders all push home sales.
"Everybody is quite confident," he said, "and we have a lot of people coming back."
