Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 15, 2010 10:29 ET

Housing Expected to Moderate in Atlantic Canada

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 15, 2010) - According to Canada Mortgage and Housing Corporation's (CMHC's) latest outlook, the level of housing activity in Atlantic Canada is forecast to decline close to seven per cent in 2011 as a weaker economic outlook will result in a pause in overall growth.

The economic and housing data was supportive to achieving positive growth in 2010. Along with historically low interest rates, stable income levels and moderate employment growth, the economy of Atlantic Canada performed better than forecast. "Compared to 2010 the pace of growth for both the economy and housing is expected to slow in 2011," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

Single starts will show a moderate decline of close to seven per cent as the economy and housing activity soften in Atlantic Canada. Multiple starts, which were strong in 2010, are expected to see an eight per cent decline in 2011, although low vacancy and financing rates could result in more activity than forecast as developers and individual consumers gauge their appetite for risk.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of 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 vital decisions.

Atlantic Housing Market Outlook1
Total Housing Starts 2009 Actual 2010 Forecast 2011 Forecast
  New Brunswick 3,522 3,725 3,455
    Forecast Ranges   3,520-3,950 3,200-3,705
  Nova Scotia 3,438 4,100 3,825
    Forecast Ranges   3,875-4,300 3,5254,125
  Prince Edward Island 877 720 630
    Forecast Ranges   690-760 575-675
  Newfoundland and Labrador 3,057 3,350 3,105
    Forecast Ranges   3,195-3,450 2,875-3,340
  Atlantic Region Total 10,894 11,895 11,015
    Forecast Ranges   11,280-12,460 10,175-11,845
 
Atlantic Housing Market Outlook1
Total MLS®Sales2 2009 Actual 2010 Forecast 2011 Forecast
  New Brunswick 7,000 6,750 6,500
    Forecast Ranges   6,500-7,500 6,250-7,000
  Nova Scotia 9,925 10,000 9,900
    Forecast Ranges   9,650-10,400 9,500-10,750
  Prince Edward Island 1,415 1,300 1,200
    Forecast Ranges   1,225-1,350 1,150-1,275
  Newfoundland and Labrador 4,416 4,500 4,325
    Forecast Ranges   4,300-4,650 4,100-4,500
  Atlantic Region Total 22,756 22,550 21,925
    Forecast Ranges   21,675-23,400 21,000-23,525
 

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Fourth Quarter 2010.

1 The forecasts included in the Housing Market Outlook are based on information available as of Oct 8th 2010. 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 2009 Actual 2010 Forecast 2011 Forecast
  New Brunswick $155,100 $159,000 $161,250
    Forecast Ranges   157,500-161,000 159,000-163,750
  Nova Scotia $196,300 $209,500 $215,000
    Forecast Ranges   208,500-211,000 210,000-216,500
  Prince Edward Island $147,000 $145,500 $146,000
    Forecast Ranges   144,500-146,500 145,000-147,500
  Newfoundland and Labrador $206,375 $233,125 $241,500
    Forecast Ranges   231,000-235,000 239,000-245,000
  Atlantic Region Total $182,515 $195,409 $200,515
    Forecast Ranges   $194,502-$197,091 $196,938-$202,504
 

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Fourth Quarter 2010.

1 The forecasts included in the Housing Market Outlook are based on information available as of Oct 8th. 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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