Lower Activity Expected for St. John's Area Housing Market

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - May 25, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC's) Fall Housing Market Outlook - St. John's report, housing market activity this year and in 2016 will be at moderately lower levels than experienced in recent years.

"Housing market activity throughout the St. John's area will slow over the forecast period due to slower economic growth compared to recent years caused by economic uncertainty and additional risks surrounding the current low commodity price environment, particularly oil," said Chris Janes, Senior Market Analyst with CMHC's Atlantic Business Centre.

New home construction activity in the St. John's area will be lower, with single-detached housing starts forecast at 850 units for this year and 875 starts in 2016. The multiple unit segment of the market is expected to see 350 units this year and 375 in 2016.

The resale market will post 3,200 sales by the end of this year, with 3,250 sales expected in 2016. Price growth is forecast close to the rate of inflation, with the average MLS^® house price expected to reach $307,000 this year and $310,000 in 2016.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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.

Follow CMHC on Twitter @CMHC_ca

MLS^® is a registered trademark of the Canadian Real Estate Association.

Additional data is available upon request

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