Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 30, 2011 08:15 ET

Atlantic Canada Housing Market Continues to Soften

HALIFAX, NOVA SCOTIA--(Marketwire - May 30, 2011) - According to Canada Mortgage and Housing Corporation's (CMHC's) latest forecast an improving economic outlook, along with historically low interest rates will provide a solid foundation for the housing sector in 2011.

"High energy prices and moderating income growth, however, will keep housing activity below 2010 levels, "said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

A pullback in housing activity following significant gains in 2010 is expected in 2011. Single starts will show a moderate drop of close to eleven per cent. Multiple starts, which saw very strong growth of over 40 per cent in 2010, are expected to decrease close to 14 per cent in 2011.

For 2011, existing house prices are forecast to increase across Atlantic Canada from a high of close to five per cent in Newfoundland and Labrador (NL), two per cent in Nova Scotia (NS), and close to one per cent in New Brunswick (NB) and Prince Edward Island (PEI). Existing home sales are expected to decline in 2011. Sales declines will vary across Atlantic Canada from four per cent in NS and NB, close to six per cent in NL and close to eight per cent in PEI.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

The Housing Market Outlook, Atlantic Region Highlights report is available on the CMHC Web site: http://www.cmhc.gc.ca

Atlantic Housing Market Outlook1
Total Housing Starts2010
Actual
2011
Forecast
2012
Forecast
New Brunswick4,1013,3203,185
Forecast Ranges3,060-3,5802,875-3,495
Nova Scotia4,3093,9753,775
Forecast Ranges3,650-4,3003,400- 4,150
Prince Edward Island756700670
Forecast Ranges640-760600-740
Newfoundland and Labrador3,6063,2503,150
Forecast Ranges3,000-3,5002,875-3,425
Atlantic Region Total12,77211,24510,780
Forecast Ranges10,350-12,1409,750-11,810

Atlantic Housing Market Outlook1
Total MLS®Sales22010
Estimate
2011
Forecast
2012
Forecast
New Brunswick6,7026,4256,265
Forecast Ranges6,100-6,7505,900-6,630
Nova Scotia10,0369,6509,450
Forecast Ranges9,200-10,1008,900-10,000
Prince Edward Island1,4871,3751,340
Forecast Ranges1,300-1,4501,250-1,430
Newfoundland and Labrador4,2364,0003,900
Forecast Ranges3,750-4,2503,600-4,200
Atlantic Region Total22,46121,45020,955
Forecast Ranges20,350-22,55019,650-22,260

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2011.

(1) The forecasts included in the Housing Market Outlook are based on information available as of April 28th 2011. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

(2) The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).(1)

Atlantic Housing Market Outlook1
Average MLS®Price ($)22010
Estimate
2011
Forecast
2012
Forecast
New Brunswick$157,240$159,500$161,500
Forecast Ranges158,000-161,000159,600-163,500
Nova Scotia$206,186$211,000$214,000
Forecast Ranges209,000-213,000211,350-216,500
Prince Edward Island$147,196$148,250$149,250
Forecast Ranges147,000-149,500147,500-151,000
Newfoundland and Labrador$235,341$247,500$252,500
Forecast Ranges242,500-252,500247,500-257,500
Atlantic Region Total$193,174$198,358$201,329
Forecast Ranges195,939-200,784198,387-204,230

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2011.

(1) The forecasts included in the Housing Market Outlook are based on information available as of April 28th 2011. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

(2) The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).(1)

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