Atlantic Canada Housing Market Will Slow

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 14, 2012) - According to Canada Mortgage and Housing Corporation's (CMHC) third quarter Housing Market Outlook, Atlantic Edition, housing activity for both single and multiple housing starts will slow in 2012 by close to 12 per cent and by six per cent in 2013.

"Notwithstanding the decline, the level of construction activity is forecast to remain above 11,000 units for the third year in a row. Multiple starts, including apartments, are forecast to decline 17 per cent in 2012 and a further nine per cent in 2013. Moderate employment and wage growth are expected to dampen single starts by eight per cent in 2012, with a further decline of four per cent in 2013," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

MLS^® prices in the second quarter of 2012 were up close to seven per cent. Prices are forecast to rise closer to five per cent in 2012. Existing home sales were also up close to seven per cent in the second quarter, but this trend is not expected to continue for the remainder of 2012. Sales for 2012 are forecast to decline moderately, in the one per cent range, and a further four per cent overall in 2013.

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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