A local realtor says a forecasted jump in real estate prices for 2020/21 is right on target.

A recent report from Moody’s Analytics is forecasting a 7.5 per cent jump in real estate prices in the St. John’s area for 2020/21.

John Riche of Hanlon Realty says prices have been down for the past three years and the increase may be coming from a pent-up demand in the market.

Riche says the market always ebbs and flows.

He says we’re approaching up from the bottom from where prices were last year, so the increase is right on target. Many see the number and think it’s a big jump, but in comparison to previous years it isn’t.

Real estate prices were down by 10.1 per cent in quarter one of 2019 and are projected to be down by 2.2 per cent in quarter one of 2020 before making the jump in 2020/21.

Riche says he believes the market has remained pretty steady here in the province, but is getting better. He says it’s not just for real estate but the market for cars and vacations are moving upwards.