Navigating the Shifting Real Estate Market in Newfoundland

April 2025 Market Update

By Jesse Gibbons | REALTOR® | Hanlon Realty As the Canadian real estate market continues to evolve, it’s crucial for both buyers and sellers in Newfoundland and Labrador to stay informed about the latest trends. National sales and prices have been on the decline, but what does this mean for our local market? Key Local Trends:

• National Home Sales Drop: March 2025 saw a 4.8% decrease in home sales month-over-month, and a 9.3% decline compared to March 2024, marking the lowest sales in March since 2009.

  
  

• St. John’s: Residential activity in St. John’s saw a moderate gain of 9.7% year-over-year, with the MLS® Home Price Index (HPI) for the city rising by 10.6% compared to March 2024. The benchmark price for single-family homes in St. John’s increased by 11%, reaching $385,500.

  
  

• Price Increases: The overall MLS® HPI composite benchmark price for homes in Newfoundland reached $307,300 in March 2025, marking a 6.7% increase year-over-year. Single-family homes saw similar growth, with a benchmark price of $309,100.
  

• Active Listings: The number of active residential listings on the market has significantly declined by 22.5% compared to last year, with active listings sitting at just 2,100 units at the end of March. This is the lowest number of active listings in March in two decades, signaling a tight inventory in the market.
  

• Mixed Market Conditions in Newfoundland: While prices are softening in some areas, competition remains high in desirable locations with low inventory, particularly on the Avalon Peninsula.

  
  

• Localized Market Strategy: It’s more important than ever to work with a REALTOR® who understands the nuances of your local market to make informed buying or selling decisions in this dynamic environment.

Translation?

For Sellers:The continued demand in Newfoundland and Labrador, particularly in St. John’s and surrounding areas, means that well-priced homes are still seeing success. With fewer properties on the market, you may still face some competition, but homes in desirable locations are likely to sell relatively quickly.

However, as inventory remains low, sellers may need to be patient and realistic with their expectations, especially if they’re looking to sell in areas where demand is slightly lower. Working with an experienced REALTOR® can help you navigate the market, strategically market and price your home correctly for the best results. For Buyers: Buyers in Newfoundland and Labrador still have the opportunity to find great value in the market, especially with prices rising in certain regions. However, competition for well-priced homes may remain high due to limited inventory. If you're looking to buy, now could be an ideal time to act before prices increase further, particularly in St. John’s.

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National Housing Demand and Prices Slide

In March 2025, Canadian home sales dropped by 4.8% month-over-month, with the overall sales activity down by 9.3% compared to March 2024. This marks the lowest level of sales in March since 2009. Much of the slowdown is being attributed to a combination of factors, including rising tariff turmoil, which is keeping many potential buyers on the sidelines. Additionally, economic uncertainty is creating a ripple effect in the housing market. Shaun Cathcart, Senior Economist at CREA, notes that what began as a slight downturn is now shaping up to be a prolonged period of market uncertainty. In his words, "We’ve gone from a slam dunk rebound year to treading water at best." While Ontario and British Columbia have seen the steepest declines, the overall trend of decreased sales is being felt across much of the country, including in Newfoundland.

A Shift in Newfoundland’s Market

While the national market is facing a cooling period, the situation here in Newfoundland and Labrador might offer a mixed bag for both buyers and sellers. Across the province, we are still experiencing relatively low inventory levels, especially in highly desirable areas like St. John's and the Avalon Peninsula. This means that while the national trend points toward softer prices, competitive market conditions still exist in certain pockets of Newfoundland.

Inventory Levels and Prices

Nationally, new supply saw a 3% increase in March 2025, bringing the total number of properties listed for sale to 165,800. This is an 18.3% increase from a year ago, although it remains below the long-term average for this time of year. Even though there are more properties available, the sales-to-new listings ratio has dropped to 45.9%, the lowest level since February 2009.

For Newfoundland, this could signal that the number of available properties in certain areas may still be lagging behind demand, contributing to some price pressure in competitive markets. However, we’re also seeing softening prices in some regions. Nationally, the average sale price dropped by 3.7% compared to March 2024, with the actual average sale price coming in at $678,331. This reflects the overall trend of declining prices in certain provinces like Ontario and British Columbia, but Newfoundland’s market has been somewhat insulated from the steepest drops.

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A Final Word

The Newfoundland and Labrador real estate market remains strong despite the national slowdown, with home sales and prices continuing to show positive growth. Whether you’re looking to buy or sell, staying informed about these local trends and working with a knowledgeable REALTOR® can help you make the best decisions in today’s dynamic market.

If you’re ready to take the next step in your real estate journey, feel free to reach out. I’m here to help you navigate the current market and achieve your goals. Let’s work together to make the most of today’s opportunities.

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