The breakdown in ownership is Chevron Corp. which owns 28 per cent, Exxon Mobil Corp. the largest shareholder with 37.5 per cent, Petro-Canada and Norway’s state-owned StatoilHydro ASA own the rest. The province of Newfoundland will receive a 4.9 per cent equity stake in the project.

So far this year St. John’s Real Estate has jumped about 20% with a projected 15% increase in 2009. In the beginning of the year CHMC went on record saying 7 - 8% increase in housing prices while Remax was deemed highly optimistic with their 12% projection for 2008.

With this impending news release, how will the real estate market react? When will the oil companies start moving people into the St. John’s and start buying up properties? Is too much of a good thing too fast good for Newfoundland Real Estate?

$194,900

Located near Kents Pond in East End St. John’s, this 2 bedroom condo has it all.  Open design concept, hardwood floors throughout most of property.  Two spacious bedrooms.  Two bathrooms.  Separate storage room located inside condo as well as plenty more in basement of building.  Lots of upgrades in past few years including new roof and new vinyl windows.  Building is well maintained and beautifully landscaped. Secure building with elevator.  Near walking trails and all amenities.  Asking price is $194,900.  Call Fraser or Stephen Winters today for more information.  682-9245 or 682-9045

Click here for a virtual tour of 25 Tiffany Lane Unit 314.

The St. John’s area housing market recorded a stellar second quarter, thanks to a bustling economy, positive net-migration and stable consumer confidence. These factors combined increased the level of demand for both new and existing homes throughout all municipalities within the region during the April to June period.  Strength in the existing homes market continued, while growth in residential construction activity was led by a surge in starts of single-detached homes. As expected, the positive momentum from last year’s Hebron and White Rose oilfield extension announcements, combined with favourable demographic and economic fundamentals, produced record second quarter results.

Although 2004’s record second quarter housing starts actually exceeded second quarter 2008 levels by 110 starts, demand for new homes from April to June was exceptional within the St.  John’s region. In fact, starts were limited only by builder capacity constraints due to a very tight labour market for skilled trades. In support of this, most new home contracts signed so far this year have been for completion as far as nine to 12 months out and include final price protection clauses for builders. Such high demand boosted residential construction activity throughout the St. John’s region during the second quarter and resulted in double-digit growth.

Speaking of business….the Hebron deal has been postponed as well.  Final last minute details are still being worked out.  The memorandum of understanding expires August 21st.

Officially launched on July 1, 2008, the locally owned and operated website www.DiningInfo.ca caters to the Newfoundland dining community, tourists, and business travelers. It currently lists restaurants in several major centers throughout Newfoundland.  In addition, it has features on local restaurants, chef profiles, current specials and promotions, restaurants that are opening soon and much more!

Wondering where to dine tonight? Check out www.DiningInfo.ca

The 3 big websites that pop into my mind are

Homesplus Online - www.homesplus.nf.net

mls.ca - now updated to realtor.ca

Google Search Engine - keywords “st. john’s real estate” or “newfoundland real estate” your choice of keywords

Of course with the last choice you have the ability to search deeper into individual Realtor websites.  This one can also lead you to sites that have nothing to do real estate at all.

What online real estate resources do you use? Homesplus Online and mls.ca are fairly similar in data…..what one do you find easier to navigate?

April, May and June MLS® sales were 308, 346 and 430, respectively

Second quarter average MLS® residential house price surged 16 percent to $169,734 compared to $146,509 during the second quarter of 2007, with additional price growth expected throughout the remainder of 2008.

There were 2,243 new residential listings during the second quarter compared to 2,344 during the same period last year

With sellers conditions, active listings averaged just 1,540 from April to June versus 2,750 during the second quarter of 2007.

Sales to active listings ratio hit 26.3 percent in June and averaged 23.5 per cent during the second quarter, nearly double the 12 percent level recorded a year ago.

Sellers Market Keeps Active Listings Down

High demand for housing has driven active residential listings much lower since mid 2007, making it increasingly difficult for some REALTORS® to obtain listings

Active listings for April, May and June were 1,411, 1,573 and 1,633, respectively

New listings decreased 4.3 percent during the second quarter and are down 4.1 percent so far this year as some sellers hold out for further price appreciation.

Bank of Canada has cut rates 150 basis points (1.50 percent) since December 2007 and will remain on hold for most of 2008

Bank rate currently sits at 3.00 percent with the prime lending rate at 4.75 percent.

One and five-year fixed mortgage rates are forecast to remain within the 6.70-7.25 and 7.00-7.50 per cent range, respectively, in 2008 and 2009, while some variable rate mortgages will remain as low as 4.10 percent

Check out the St. John’s Farmers Market Saturday at the Lions Club Chalet.  Located right behind the Remax Centre (Curling Club).  9am to 2pm.  Lots of locally grown veggies, fruits, Newfoundland arts and crafts and paintings.  They even have a Facebook Group “I support a weekly farmer’s market in downtown St. John’s”

Every summer in St. John’s at Signal Hill, military drills and music from the 1800s is featured. The Signal Hill Tattoo is now up and running.  Check out the re-enactment of 18th Century military exercises with period costumes, guns and cannon fire this Saturday at the Signal Hill National Historic Site.

The Royal St. John’s Regatta is only a few weeks away.  This Saturday on Quidi Vidi Pond the Time Trials will be taking place starting at 8am.  The purpose of these Time Trials is to determine the makeup of each Regatta Day race based upon the times rowed by the crews participating in the Time Trial heats. Drop down and check out the local rowing crews and see all the hype.

The caplin are rolling! The caplin are rolling around the Avalon bringing hundreds of people to Logy Bay, Middle Cove, Outer Cove beaches.  The presence of the caplin brings with them lots of whales! Check out this quick YouTube clip titled “Caplin in Newfoundland“. If you haven’t seen this phenomenon I highly encourage it.  But hurry….they will not be around for much longer.

And of course….with this beautiful weather you can always enjoy a couple of hours chasing after a little white ball on a golf course.  Newfoundland has a lot of terrific golf courses. My personal favorite is Clovelly Golf Course in East End St. John’s, (in the Clovelly Trails Sub division). Of course you can enjoy a scenic view of St. John’s from Admirals Green in Pippy Park.   For a complete list of Newfoundland golf courses visit golfnewfoundland.ca or the Newfoundland and Labrador Golf Association.

We are all familiar with the  sub-prime mortgage meltdown in the States the past year but while Canada is not even close to this disaster the government still feels it necessary to secure and maintain a strong mortgage and housing market.

The changes include:

• Cutting the maximum amortization period to 35 years from 40.
• Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
• Establishing a requirement for a consistent minimum credit score.
• Introducing new loan-documentation standards.

The people effected are the purchasers with less the 20% downpayment for a property as they are the people that require mortgage insurance with the purchase of real estate.

Mortgage insurance protects lenders (ie Royal Bank, Scotia Bank etc) when a borrower  (the Purchaser) defaults on the loan if the sale of the property doesn’t cover the debt.

I for one am in agreement with this change.  The zero down, 40 year mortgage that was introduced a couple years ago allowed home buyers the ability to purchase a home yet become heavily in debt.  There was a lot of buyers that entered the real estate market in Canada during this time and probably shouldn’t have.

It will be interesting to see the public’s reaction to these changes.

Read the Globe and Mail Article - Ottawa tightens mortgage rules to avoid ‘bubble’

Read the CBC News release - Ottawa tightens mortgage insurance rules

Norm Fishers Saskatoon Blog Article - Canadian Government Says, “No More 40-year Mortgage for You!”

Edmonton Real Estate Blog - No More Zero Down, 40 Year Mortgages