The real estate industry in Newfoundland and Labrador has hit new heights in terms of being an economic generator.

For the first time ever, the industry surpassed the $2-billion mark last year.

Bill Stirling , the executive director of the Real Estate Association of Newfoundland and Labrador, says it was one of the best years for home values and the number of sales.

He notes that real estate now exceeds the fishery and tourism combined.

Prices have levelled off across much of the country, the exceptions being Saskatchewan and Newfoundland and Labrador.

Stirling says the reason is simple: demand is high, supply is weak and labour is not always in abundance.

He says part of the reason is that it’s still very expensive to build. Five years ago construction on a 2-apartment house in Kenmount Terrace would have cost $300,000 – now it’s up around $600,000.

“The cost of construction is going up, the cost of land is going up. Instead of taking 12 weeks to build a house, it’s taking 8 or 9 months,” says Stirling.