Residential property sales in Newfoundland and Labrador were down from year-ago levels in July 2010 for the first time since last October.

According to statistics provided by the Newfoundland and Labrador Association of REALTORS®, home sales numbered 469 units in July 2010, down 13 per cent on a year-over-year basis. Seasonally adjusted sales activity has been trending lower since March. By comparison, national home sales dropped 30 per cent in July compared to one year earlier.

Monthly residential activity in St. John’s declined 16 per cent year-over-year, compared with a decrease of 10 per cent for the rest of the province. Single detached home sales in St. John’s were down 25 per cent from levels recorded in July 2009.

On a year-to-date basis, provincial activity remains nine per cent above levels reported in the first seven months of 2009. A total of 2,346 homes have traded hands since the beginning of the year. This stands less than three per cent below the record for the period in 2008.

The year-over-year decrease in overall residential activity in July represents fewer lower and mid-priced sales, offsetting an increase in demand for more expensive properties. Sales in the range from $150,000 to $250,000 were down 24 per cent in July. This was more than enough to offset a 27 per cent increase in sales priced from $250,000 to $350,000, and a doubling of sales priced above $350,000.

The average price for homes sold in Newfoundland in July was $238,729, another record. This was an increase of 16 per cent from the same month last year, and represents the 40th consecutive month in which the average price has risen on a year-over-year basis. The large gain resulted in part from the shift in demand from lower and mid-priced properties to more expensive housing. The national average price was up one per cent from a year earlier to $330,351.

The dollar value of all provincial home sales amounted to $112 million in July 2010, up two per cent from a year earlier. This is the highest dollar volume on record for any month.

New residential listings on the Association’s MLS® System were down eight per cent from one year earlier to 844 units in July. Active residential listings numbered 2,509 units at the end of July 2010. This is up eight per cent from July 2009, but remains well below peak levels reached in the same month in 2006 and 2007.

There were 5.3 months of inventory at the end of July 2010, up from levels recorded one year earlier (4.4 months). The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The Newfoundland and Labrador Association of REALTORS® was created in 2005. The Association represents more than 500 REALTORS® in all regions of Newfoundland and Labrador, providing professional support and a local Multiple Listing Service®. Listings can also be viewed on the national www.REALTOR.ca web site (residential properties) and ICX.CA (commercial and investment properties).

For additional information, please contact:
Dorothy Saunders
Executive Director
Newfoundland and Labrador Association of REALTORS® (NLAR)
28 Logy Bay Road
St. John's, NL A1A 1J4
Phone: (709) 726-5110