The average residential sale price in the St. John's housing market has increased by 11 per cent year-over-year across all property types in 2025, from $369,000 to $410,572. The number of sales transactions increased by 4.4 per cent for the same time period (from 2,677 to 2,796). The total number of listings decreased by 2.4 per cent (from 1,526 in 2024 to 1,489 in 2025). Average residential sale prices will rise by 10 per cent going into 2026, compared to 2025. Sales are anticipated to rise by five per cent going into 2026, compared to 2025. Newfoundland and Labrador is anticipated to be a seller's market heading into 2026 due to limited housing inventory, strong demand from first-time buyers, and continued interest from investors in multi-unit and rental properties. These factors are creating a competitive environment that favours sellers, particularly for well-priced and move-in-ready homes. Paradise, Conception Bay South, and Kenmount Terrace are the top three neighbourhoods in the region due to a combination of location, lifestyle, and housing options.
Trends in the St. John's Housing Market
Paradise and Conception Bay South offer family-friendly communities with access to good schools, recreational amenities, and proximity to employment hubs, making them attractive for move-up and first-time buyers alike. Kenmount Terrace appeals with newer developments, convenient access to transportation routes, and modern housing options, including energy-efficient single- and semi-detached homes.
Semi-detached homes are expected to see the most demand in 2026 due to their balance of affordability, space, and privacy. Growing among first-time buyers, growing families, and downsizing retirees, and new energy-efficient designs to further enhance their appeal. Looking ahead to 2026, distinct buying and selling trends are emerging across the region. First-time homebuyers are primarily seeking new semi-detached properties, typically priced around $375,000. Move-up and move-over buyers are relocating to improve their lifestyle and accommodate hybrid work, prioritizing larger spaces, energy efficiency, and desirable locations for growing families. Retirees are focusing on smaller bungalows with energy-efficient features, generally priced between $375,000 and $500,000. New-home construction is concentrated on small single-detached and semi-detached dwellings that emphasize energy efficiency. Developments in areas such as Paradise, St. John's, and Conception Bay South are moving forward, supported by strong housing demand and low inventory, with months of inventory currently at approximately 4.5 months.
As of Fall 2025, the local housing market shows a split in dynamics that could influence a rebound in 2026. Properties priced below $800,000 are experiencing strong demand, creating a sellers' market, while the upper-end segment above $1 million remains a buyers' market. These trends suggest that overall market activity could strengthen next year, with affordability and price segmentation shaping buying and selling behavior.
Rising rents and tightening vacancy rates are encouraging more first-time buyers to consider homeownership. Concerns about future rent increases, limited rental availability, and the desire for financial stability and predictability are motivating tenants to transition from renting to buying. Newfoundland and Labrador is experiencing unprecedented interest from outside investors seeking multi-unit properties and larger apartment buildings. In both regions, investment properties frequently attract multiple offers as soon as they become available, reflecting strong demand and competitive activity across the market. 2026 is expected to be a strategic year to buy for those who can find a property within their budget. Entering the market sooner rather than later allows new homebuyers to start building equity earlier, positioning them for long-term financial benefits.
Heading into 2026, lower mortgage rates are expected to increase borrowing power—roughly 8–10 per cent more per one-point drop—bringing additional first-time buyers into the market, including some tenants who now qualify for homeownership. New home construction may be affected by weather conditions, while broader economic drivers such as the public sector, healthcare, Memorial University, and offshore energy continue to influence buyer confidence and migration. Any changes in energy investment or employment can quickly impact demand.
Historically, St. John's and surrounding areas experience a quieter first quarter, followed by a spring surge in activity; mortgage rates will largely determine the strength of that seasonal increase. The housing market in Newfoundland and Labrador is largely driven by the natural resources sector. Offshore projects and mining activities—such as gold exploration in central Newfoundland, nickel mine at Voisey's Bay, and iron ore in western Labrador—directly influence employment, income, and homebuying power, shaping both homeownership and rental demand. This is expected to continue through 2026. The foreign buyer's ban will be relatively marginal in Newfoundland and Labrador in 2026. Any zoning and permit reforms will help drive new home construction. Technology hasn't just simplified the home search, it's widened the buyer pool, raised the bar for listing content and normalized remote transactions.
