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Weak housing report for St. John's doesn't faze local realtor

On the heels of a report documenting a dramatically softer St. John's housing market, one realtor in the city says there's more to the data than meets the eye.

Housing market

8 years ago
Duration 4:56
A St. John's realtor says home buyers shouldn't take too much to heart a report out this week from the Canada Mortgage and Housing Corporation, detailing how the price of oil has affected the city's housing market.

A St. John's realtor says home buyers shouldn't take too much to heart a report out this week from the Canada Mortgage and Housing Corporation, detailing how the price of oil has affected the city's housing market.

"I don't make much of it," said Jason Piercey, who also hosts a local real estate web series on Facebook, The Ask Jason Show.

Still, Piercey said some of the CMHC report's numbers and the subsequent media coverage have created a sense of unease among his clients, and that he is in "damage control" mode.

The report, released Thursday, noted a large degree of uncertainty in the St. John's market predicted to last through 2017, with fewer houses currently on the market and a decline overall in average house prices.

A CMHC report released Thursday says housing starts in St. John's have declined since the price of oil began its downward slide in 2014. (Reuters)

But Piercey said a careful reading of the data should reassure nervous sellers.

"That data, about average sale price, does not say that you lost $30,000 of equity in your home overnight," he told CBC News, noting that is an average and doesn't reflect each individual house.

"We're drawing conclusions — sometimes, but not always — for the sake of sensationalism. Because it will get people to pay attention."

A house under $250K? 'You are golden'

Piercey said a seller's best bet in turbulent times is a good salesman.

Real estate agent Jason Piercey says the report's data is not black and white. (CBC)

"If you want to sell your house for top dollar, my advice is hire someone who knows how to market like it's 2016, not somebody who knows how to market like it's 2009," he said, admitting that puts pressure on realtors to provide good value to their clients.

My advice is to hire someone who knows how to market like it's 2016.- Jason Piercey

Piercey also said before even contacting a real estate agent, people should get their financial house in order.

"Go to the bank first. Because I'm going to show you a house and you're going to fall in love with it, and it's going to break your heart when the bank says that you can't make that particular one happen," he said.

And at least one sector of the selling market shouldn't be worried about the report.

"If you own a house right now that's $250,000 or less, you are golden, if you want to sell that."