Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

February 17, 2011 09:31 ET

Housing Market Expected to Moderate in Atlantic Canada

HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 17, 2011) - 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 ten per cent in 2011 as a weaker economic outlook will result in a slowdown in housing activity.

"Along with historically low interest rates and stable income levels the economy of Atlantic Canada performed well in 2010. The level of housing activity increased over 17 per cent compared to 2009, with the economy showing modest growth overall," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

Housing activity will slow in 2011 as weaker economic growth will result in a pause in the overall recovery phase. Single starts will show a moderate decline of close to eight per cent as the economy softens in Atlantic Canada. Multiple starts, which saw very strong growth of over 40 per cent in 2010, are expected to decrease close to 14 per cent in 2011.

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.

The Housing Market Outlook, Atlantic Region Highlights report is available on the CMHC Web site:  http://www.cmhc.gc.ca.

Atlantic Housing Market Outlook1
Total Housing Starts 2010
Actual
  2011
Forecast
2012
Forecast
  New Brunswick 4,101   3,575 3,360
    Forecast Ranges     3,250-3,900 2,975-3,745
  Nova Scotia 4,309   3,925 3,675
    Forecast Ranges     3,550-4,300 3,250- 4,100
  Prince Edward Island 756   680 655
    Forecast Ranges     625-735 590-720
  Newfoundland and Labrador 3,606   3,300 3,170
    Forecast Ranges     3,025-3,550 2,900-3,440
  Atlantic Region Total 12,772   11,480 10,860
    Forecast Ranges     10,450-12,485 9,715-12,005
 
 
Atlantic Housing Market Outlook1
Total MLS®Sales2 2010
Estimate
  2011
Forecast
2012
Forecast
  New Brunswick 6,702   6,425 6,265
    Forecast Ranges     6,100-6,750 5,900-6,630
  Nova Scotia 10,036   9,650 9,450
    Forecast Ranges     9,200-10,100 8,900-10,000
  Prince Edward Island 1,487   1,375 1,340
    Forecast Ranges     1,300-1,450 1,250-1,430
  Newfoundland and Labrador 4,236   4,000 3,900
    Forecast Ranges     3,750-4,250 3,600-4,200
  Atlantic Region Total 22,461   21,450 20,955
    Forecast Ranges     20,350-22,550 19,650-22,260
 
SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, First Quarter 2011.
 
1 The forecasts included in the Housing Market Outlook are based on information available as of January 17th 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   $159,500 $161,500
    Forecast Ranges     158,000-161,000 159,600-163,500
   Nova Scotia $206,186   $211,000 $214,000
     Forecast Ranges     209,000-213,000 211,350-216,500
   Prince Edward Island $147,196   $148,250 $149,250
     Forecast Ranges     147,000-149,500 147,500-151,000
   Newfoundland and Labrador $235,341   $243,000 $248,000
     Forecast Ranges     241,000-245,000 245,000-251,000
   Atlantic Region Total $193,174   $197,519 $200,491
     Forecast Ranges     195,663-199,370 197,929-203,004
 
SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, First Quarter 2011.
 
1 The forecasts included in the Housing Market Outlook are based on information available as of January 17th. 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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