A downturn in the oil and gas industry in Newfoundland and Labrador and Alberta has resulted in a 10 per cent drop in the value of properties in the metro region.

CEO of the NL Association of Realtors, Bill Stirling says it isn’t just oil and gas that’s been fueling the market though, government is also a big factor as one third of all Newfoundlanders and Labradorians work for government.

He says uncertainty in the early days of the Ball government about downsizing put the breaks on the market.

Alberta money was a big factor too, with some 25,000 people living here but working in Alberta, and sending home big cheques. Those people were buying big houses and grouping together and buying two unit properties as an investment. All that has since taken a downturn.

He says tougher rules aimed at stemming activity that’s been artificially driving up prices in Vancouver and Toronto are making it harder for first-time buyers in this area to enter the market.

Things are slowly starting to pick up and Stirling says prices should start to climb as the existing inventory clears.

Listen to Bill Stirling on On Target St. John’s with Linda Swain below: