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]
Contact Information:
Regional Economist
CMHC
(902) 426-8964
amacdona@cmhc-schl.gc.ca
The Housing Market Outlook, Atlantic Region
Highlights report is available on the CMHC
Web site: http://www.cmhc.gc.ca