Housing Starts to Decline in New Brunswick

MONCTON, NEW BRUNSWICK--(Marketwired - June 25, 2013) - According to Canada Mortgage and Housing Corporation's (CMHC's) Spring Housing Market Outlook - Saint John, Moncton and Fredericton report, residential construction in New Brunswick's large urban centres is expected to decline in both 2013 and 2014.

"A reduction in new single-detached homes, combined with an expected decline in rental market construction in New Brunswick's three large urban centres, will produce fewer total housing starts in 2013 and a further moderate decline in 2014," said Claude Gautreau, CMHC's Senior Market Analyst for New Brunswick. The decline in demand and resulting decrease in residential construction activity will stem, in part, from slow economic growth over the forecast period combined with weakening employment.

The general trend in the resale market is expected to be similar in 2013 and 2014, with fewer homes expected to be sold over the forecast period. "Slowing sales activity observed in provincial urban centres since the start of 2013 will remain to the end of this year and extend into 2014. Reduced demand for homes will also have the effect of limiting price growth," added Gautreau.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

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