MONCTON, NEW BRUNSWICK--(Marketwired - May 22, 2014) - 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 2014 and 2015.
"Weak demand for new single-detached homes will extend a current downward trend in starts, while rising vacancy rates in the province's large urban centres will slow multi-residential construction activity, resulting in an overall decline in total housing starts in 2014 and 2015," said Claude Gautreau, CMHC's Senior Market Analyst for New Brunswick. Above average construction activity in recent years, particularly in the rental market, has exerted upward pressure on the vacancy rate. As for the new home market, rising inventory levels in most market segments have provided consumers with a wide array of housing choices. Demand for housing is expected to remain slow over the forecast period, as economic and employment growth remains weak.
A downward trend is also expected in the resale market in 2014 and 2015. While the slowdown in activity will be relatively modest compared to the new home market, fewer homes are expected to be sold over the forecast period. "With new listings remaining at historically high levels, the combination of slowing sales activity and higher inventory will also limit price growth over the forecast period," 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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Additional data is available upon request.
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