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]