In May 2024, Newfoundland and Labrador’s real estate market showed stronger sales and rising prices, but employment and consumer confidence levels posed some concern.
Sales Activity
Home Sales: The region saw a total of 476 homes sold in May 2024, marking an 18.7% increase compared to May 2023. This surge places sales 6.2% above the five-year average and 21.3% above the ten-year average for the month, indicating robust market performance.
Year-to-Date Performance: For the first five months of 2024, cumulative home sales reached 1,707 units, reflecting a 7% growth over the same period in 2023. This may indicate a consistent upward trend.
St. John’s
Home sales in St. John’s rose by 5.6% year-over-year in May. However, single-detached home sales in the city remained stable, showing no change from May 2023 levels. Meanwhile, outside St. John’s, sales activity surged by 24.6%, showing more significant growth in other parts of Newfoundland and Labrador.
Pricing
The MLS® Home Price Index indicated an overall composite benchmark price of $291,100 in May 2024, up 5.6% from the previous year.
The benchmark price for single-family homes was $293,100, up by 5.7%. Townhouses and row units saw their benchmark price reach $305,900, for a 5.7% increase. The benchmark price for apartments stood at $228,900, showing a 3.7% rise.
St. John’s
The composite benchmark price was $340,900, up 5.8% year-over-year. The benchmark price for single-family homes was $354,800, for a 6.2% increase. Townhouses and row units had a benchmark price of $297,600, with a 5.2% increase. Apartments in St. John’s had a lower increase of 3.9% to reach $228,500.
Listings
There were 1,044 new residential listings in May 2024, virtually unchanged from May 2023. This is 3.4% below the five-year average and 11% below the ten-year average.
The number of active residential listings was 2,876 units by the end of May, down 9% year-over-year, for a 15-year low for May. This reflects a significant drop of 21.9% from the five-year average and 34.2% below the ten-year average.
Months of inventory was at 6 months in May 2024. This is a decrease from 7.9 months in May 2023 and below the long-run average of 12.3 months.
Unemployment
Newfoundland and Labrador’s unemployment rate was 9.7% in May 2024, slightly down by 0.1% from the previous month and significantly below the pandemic peak of July 2020. An increase of 200 full-time jobs was offset by a loss of 700 part-time jobs.
St. John’s
The unemployment rate in St. John’s was 7.3%, up 0.2% from April 2024. While the city saw an increase of 800 full-time jobs, a loss of 700 part-time positions offset this gain.
Consumer Confidence
Atlantic Region Sentiment: According to the Conference Board of Canada, consumer confidence in the Atlantic region continued to decline in June 2024. Concerns about job prospects rose, and the overall percentage of consumers who believed it was a good time to make a major purchase dropped.
