Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2009 23:59 ET

Charlottetown Housing Market to Return to More Sustainable Levels

CHARLOTTETOWN, May 19 The outlook for the Charlottetown housing
market remains positive, reports Canada Mortgage and Housing Corporation
(CMHC) in its Housing Market Outlook - Charlottetown report which was released
today.
"The local housing market has been performing well above average since
2002, but is expected to return to more sustainable levels this year and next
due to heightened economic uncertainty," said Jason Beaton, market analyst
with CMHC in Prince Edward Island. While positive in-migration and low
interest rates are expected to persist, it will not be enough to offset the
declines as households remain cautious in the current economic environment. As
such it is expected that single-detached construction in the capital region
will slow to 225 units in 2009, before rebounding to 250 units in 2010.
"With economic uncertainty, existing home sales are expected to decline
this year before posting a moderate increase in 2010," said Mr. Beaton.
Despite the expected decline in unit sales for 2009, the average sale price
will continue to climb. Expect to see 540 units sold in 2009, down from 595
sales in 2008.
For more information, visit www.cmhc.ca or call 1-800-668-2642.

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Forecast Summary
Charlottetown CA
Spring 2009
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2006 2007 2008 2009f % chg 2010f % chg
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Resale Market
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MLS® Sales 634 650 595 540 -9.2 555 2.8
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MLS® New
Listings 783 817 975 940 1,000 900 -4.3
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MLS® Average
Price ($) 153,549 166,244 175,231 177,000 1.0 179,500 1.4
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New Home Market
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Starts:
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Single-
Detached 276 295 280 225 -19.6 250 11.1
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Multiples 191 99 146 125 -14.4 125 0.0
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Starts - Total 467 394 426 350 -17.8 375 7.1
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Average Price ($):
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Single-
Detached 186,774 192,477 207,361 192,500 -7.2 198,275 3.0
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Median Price ($):
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Single-
Detached 175,000 180,000 200,000 206,000 3.0 185,500 -10.0
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New Housing
Price Index
(% chg.) 2.2 1.3 1.4 3.0 - 3.0 -
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Rental Market
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October
Vacancy
Rate (%) 4.8 4.3 2.3 2.0 -0.3 1.8 -0.2
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Two-bedroom
Average Rent
(October) ($) 638 659 672 715 - 735 -
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Economic Overview
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Mortgage
Rate
(1 year) (%) 6.28 6.90 6.70 5.57 - 6.41 -
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Mortgage Rate
(5 year) (%) 6.66 7.07 7.06 6.63 - 7.07 -
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Annual
Employment
Level (,000) 32,175 32,450 32,925 32,500 -1.3 32,825 1.00
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Employment
Growth (%) 1.8 0.9 1.5 1.0 - 1.0 -
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Unemployment
rate (%) 7.6 6.6 7.6 7.4 - 7.6 -
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Net Migration
(P.E.I.) (1) -111 417 868 500 -42.4 325 -35.0
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MLS® is a registered trademark of the Canadian Real Estate Association
(CREA).

Source: CMHC (Starts and Completions Survey, Market Absorption Survey),
adapted from Statistics Canada (CANSIM), CREA, Statistics Canada (CANSIM)
NOTE: Rental universe = Privately initiated rental apartment
structures of three units and over
(1) 2007 migration data is forecasted

Contact Information

  • For further information: Jason Beaton, Market Analyst, Canada Mortgage
    and Housing Corporation, (506) 851-6047, jbeaton@cmhc-schl.gc.ca