Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 24, 2011 08:15 ET

Fewer Housing Starts in Atlantic Canada

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 24, 2011) - According to Canada Mortgage and Housing Corporation's (CMHC's) latest outlook, the economic and housing market performance in Atlantic Canada in 2011 is currently being impacted by slower employment growth and weaker retail spending activity.

"Low interest rates, previously the foundation for better performance in the housing sector, are not expected to offset the weaker economic outlook," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

A slowdown in housing activity following significant gains in 2010 is currently in progress in 2011. Single starts will show a decline of 17 per cent. Multiple starts, which saw very strong growth of over 40 per cent in 2010, are expected to decrease nine per cent in 2011.

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

Atlantic Housing Market Outlook1
Total Housing Starts 2010
Actual
2011
Forecast
2012
Forecast
New Brunswick 4,101 3,100 3,000
Forecast Ranges 2,825-3,375 2,650-3,350
Nova Scotia 4,309 4,050 3,825
Forecast Ranges 3,700-4,400 3,400- 4,250
Prince Edward Island 756 675 650
Forecast Ranges 615-735 600-700
Newfoundland and Labrador 3,606 3,175 3,050
Forecast Ranges 2,950-3,400 2,785-3,315
Atlantic Region Total 12,772 11,000 10,525
Forecast Ranges 10,090-11,910 9,435-11,615
Atlantic Housing Market Outlook1
Total MLS®Sales2 2010
Estimate
2011
Forecast
2012
Forecast
New Brunswick 6,702 6,425 6,265
Forecast Ranges 5,900-6,750 5,800-6,750
Nova Scotia 10,036 9,500 9,350
Forecast Ranges 8,800-10,000 8,700-10,000
Prince Edward Island 1,487 1,375 1,340
Forecast Ranges 1,275-1,450 1,250-1,425
Newfoundland and Labrador 4,236 3,925 3,900
Forecast Ranges 3,650-4,100 3,600-4,200
Atlantic Region Total 22,461 21,225 20,855
Forecast Ranges 19,625-22,300 19,350-22,375

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

1 The forecasts included in the Housing Market Outlook reflect information available as of August 12th 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 ($)2 2010
Estimate
2011
Forecast
2012
Forecast
New Brunswick $157,240 $160,000 $161,600
Forecast Ranges 158,000-162,000 159,250-163,750
Nova Scotia $206,186 $211,000 $214,000
Forecast Ranges 209,000-213,000 211,350-216,500
Prince Edward Island $147,196 $146,000 $147,500
Forecast Ranges 144,000-147,500 145,500-149,000
Newfoundland and Labrador $235,341 $249,000 $255,000
Forecast Ranges 246,500-253,000 252,500-260,000
Atlantic Region Total $193,174 $198,378 $201,653
Forecast Ranges 196,433-200,646 199,149-204,441

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

1 The forecasts included in the Housing Market Outlook reflect information available as of August 12th 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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