Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 15, 2010 10:45 ET

Moderate Decline in New Brunswick Residential Construction Forecast in 2011

MONCTON, NEW BRUNSWICK--(Marketwire - Nov. 15, 2010) - Total housing starts in New Brunswick are expected to see a moderate decline in 2011 following a province wide increase in 2010, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook released today.

"The robust residential construction activity observed in 2010 is not expected to continue in 2011, as a rebalancing of supply and demand in provincial urban centres will lead to reduced housing starts," said Claude Gautreau, CMHC's senior market analyst for New Brunswick. Provincially, employment levels are expected to decline in both 2010 and 2011. Although the impact is expected to be moderate, reduced employment levels will be felt in the housing market next year.

In New Brunswick's three large urban areas – Saint John, Moncton and Fredericton – fewer residential starts are expected in 2011 compared to this year's totals. However, the anticipated decline in housing starts will be moderate. The existing home market is expected to follow the same general trend with reduced sales in 2011 but will continue to see growth in the average sale price.

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.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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Forecast Summary
Fall 2010
Fredericton CA 2007 2008 2009 2010f % chg 2011f % chg
Resale Market              
MLS® Sales 2,448 2,160 2,166 2,075 -4.2 2,050 -1.2
MLS® Average Price ($) 141,117 152,268 159,219 166,500 4.6 174,000 4.5
New Home Market              
Starts:              
  Single-Detached 432 475 403 400 -0.7 410 2.5
  Multiples 204 223 352 330 -6.3 280 -15.2
  Starts - Total 636 698 755 730 -3.3 690 -5.5
 
Forecast Summary
Fall 2010
Moncton CMA 2007 2008 2009 2010f % chg 2011f % chg
Resale Market              
MLS® Sales 2,849 2,663 2,386 2,425 1.6 2,400 -1.0
MLS® Average Price ($) 140,032 143,173 150,135 155,500 3.6 163,000 4.8
New Home Market              
Starts:              
  Single-Detached 655 566 430 500 16.3 480 -4.0
  Multiples 770 793 543 745 37.2 640 -14.1
  Starts - Total 1,425 1,359 973 1,245 28.0 1,120 -10.0
 
Forecast Summary
Fall 2010
Saint John CMA 2007 2008 2009 2010f % chg 2011f % chg
Resale Market              
MLS® Sales 2,253 2,166 1,986 1,800 -9.4 1,750 -2.8
MLS® Average Price ($) 140,544 158,117 171,027 174,500 2.0 179,000 2.6
New Home Market              
Starts:              
  Single-Detached 412 488 369 360 -2.4 355 -1.4
  Multiples 275 344 290 330 13.8 255 -22.7
  Starts - Total 687 832 659 690 4.7 610 -11.6
MLS® is a registered trademark of the Canadian Real Estate Association (CREA).
Source: CMHC (Starts and Completions Survey, Market Absorption Survey), adapted from Statistics Canada (CANSIM), CREA, Statistics Canada (CANSIM)

Contact Information

  • CMHC Market Analysis Centre
    Claude Gautreau
    506-851-2742
    Cell: 506-866-9002
    cgautrea@cmhc.ca