We often hear of the Prairies and Atlantic Canada as being the most affordable regions in Canada to buy a home, but even among those regions, there remains one province that stands out as the most affordable: Newfoundland.
Unlike other areas that are seeing price growth slow or even decline due to interest rate hikes and buyer hesitancy, Newfoundland’s home prices are still climbing. This marks Newfoundland as not only one of the most affordable real estate markets in Canada but also one of the most competitive. To better understand the unique conditions affecting Newfoundland right now, we talked with local eXp Realty agent Jason Piercey about his insights and experience in this market.
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Newfoundland’s Hot, but Tight Market
In July 2022, Newfoundland & Labrador’s benchmark price was $285,600. Currently, the benchmark price is $289,800 – an increase of 1.5%. All other provinces except Alberta are experiencing year-over-year declines, so what makes Newfoundland & Labrador special?
“We’re not feeling the effects of the interest rate hikes because our inventory issue is trumping it. We’re very much in a sellers’ market and we’re regularly getting multiple offers on homes,” said Piercey. “Properties are not only selling over asking price, but they’re selling within a week or even a few days.”
The hottest properties on the market now are homes with rental units in them, moderate single-family homes, and larger-than-average bungalows with a garage. “If it’s a nice property priced well, the home will sell virtually instantly,” added Piercey.
With supply limited and buyers eager, prices in the province are being pushed upward and will likely remain that way for some time until more listings come to market. “I’m expecting inventory for fall and winter will keep us at a place where transactions remain at a historic level of activity and that prices maintain, perhaps dipping a little, but more due to seasonality,” said Piercey.
How Other Cities Compare
Even with home prices rising, Newfoundland offers great value to homebuyers. “From a housing and financial perspective, it is still way more accessible here in St. John’s than anywhere else in Canada that I’m aware of,” said Piercey.
Newfoundland’s Atlantic Canada neighbour, Prince Edward Island, is $70,900 more expensive, and the further toward the Pacific you go, the greater the disparity with Newfoundland becomes. Canada’s largest metropolitan areas, Greater Toronto and Greater Vancouver, are nearly $1,000,000 more expensive than Newfoundland. Even Edmonton, largely regarded as one of the most affordable markets in Canada, is still $85,300 more expensive than Newfoundland.
Of course, moving to Newfoundland comes with its own costs, notably the long winters and slower pace of living. However, if you are looking to make the transition to coastal living there are a few things to keep in mind.
“If you want to buy, the first thing you need to do is figure out the value of what you want and then find someone who knows the market locally who can work for you to find that while you’re not physically present,” said Piercey. “It also helps to have everything lined up so when you do decide, you can commit and you can succeed, or else you might be shopping indefinitely.”
If you’re considering a move this fall, be it across the country or just across the city, let us help! Contact us today to speak with a trusted realtor about the home-buying or selling process.
