The average price of a home in St. John's has gone up more than $40,000 over the past year, according to new numbers from the Canada Mortgage and Housing Corporation.
"So far, we've seen an increase in the average price of about 18 per cent. Right now, in the St. John's area, that average price is $245,000. Last year this time, after the first quarter of 2009, it was around $205,000," said the CMHC's Chris Janes.
Real estate agents say the rising house prices aren't scaring off buyers.
"I would estimate that 20 per cent of the offers I've written have been in the competing bid scenario, which results in multiple offers, so at an entry level price point, and that's something between the $220,000 -$250,000 price mark," said real estate agent Keith Soper
Janes said that as province's oil industry continues to do well home prices in the capital city are expected to keep increasing.
"We have a lot of income growth right now in the St. John's area and the employment picture and the general economy are very strong," he said.
Prices may keep rising but some changes that are coming may cool the housing market.
New rules coming into effect April 19 will require a 20 per cent down payment from anyone buying an investment property.
The Bank of Canada is expected to increase interest rates this spring. That may mean fewer people will be able to get the mortgage they need to buy a house.