Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

June 14, 2012 08:15 ET

Atlantic Canada Housing Market Slows

HALIFAX, NOVA SCOTIA--(Marketwire - June 14, 2012) - According to Canada Mortgage and Housing Corporation's (CMHC) second quarter Housing Market Outlook, Atlantic Edition1, housing activity for both single and multiple housing starts will slow in 2012 by close to ten per cent and a further five per cent in 2013.

"Notwithstanding an expected decline, the level of construction activity is forecast to remain historically high. Multiple starts, including apartments, are forecast to decline 15 per cent in 2012 and a further six per cent in 2013. Weak employment and wage growth are expected to dampen single starts by seven per cent in 2012, with a further decline of three per cent in 2013," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

Prices are forecast to rise close to three per cent in 2012 as a continuing increase in supply will keep the level of price increases close to the rate of inflation. Existing home sales for 2012 are forecast to decline moderately, in the two per cent range.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. 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.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

MLS® is a registered trademark of the Canadian Real Estate Association.

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Atlantic Housing Market Outlook1

Total Housing Starts

2011
Actual

2012
Forecast
New Brunswick 3,452 2,950
Forecast Range 2,600 - 3,300
Nova Scotia 4,644 4,250
Forecast Range 3,800 - 4,700
Prince Edward Island 940 800
Forecast Range 705 - 895
Newfoundland and Labrador 3,488 3,200
Forecast Range 2,850 - 3,550
Atlantic Region Total 12,524 11,200
Forecast Range 9,955 - 12,445

Total MLS®Sales2

2011
Actual

2012
Forecast
New Brunswick 6,599 6,250
Forecast Range 5,600 - 6,900
Nova Scotia 10,321 10,450
Forecast Range 9,600 - 11,300
Prince Edward Island 1,521 1,375
Forecast Range 1,250 - 1,500
Newfoundland and Labrador 4,480 4,250
Forecast Range 3,900 - 4,600
Atlantic Region Total 22,921 22,325
Forecast Range 20,350 - 24,300

Average MLS®Price ($)2

2011
Actual

2012
Forecast
New Brunswick $160,545 $162,000
Forecast Range 159,500 - 164,500
Nova Scotia $212,512 $220,000
Forecast Range 216,000 - 224,000
Prince Edward Island $149,617 $155,600
Forecast Range 152,500 - 158,750
Newfoundland and Labrador $251,581 $262,000
Forecast Range 258,000 - 266,000
Atlantic Region Total $201,013 $207,792
Forecast Range 204,601 - 211,028
SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2012.
1 The forecasts included in the Housing Market Outlook are based on information available as of April 27th 2012. 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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