Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 15, 2010 10:09 ET

Slight Declines Forecast for Charlottetown Housing Market

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwire - Nov. 15, 2010) - The outlook for the Charlottetown housing market reveals a slight decline, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook report released today. 

"Total new home construction in Charlottetown will decrease primarily due to fewer rental units being built this year. Single-detached starts will remain close to levels seen in 2009," said Ralph Freeze, market analyst with CMHC for Prince Edward Island. Despite a substantial decline in multiple units compared to 2009, the level of construction in 2010 will be recorded as one of the highest in recent history. The unusually high level of multiple unit construction in 2009 was not sustainable. The outlook for 2011 points to a small decline for both single-detached and multiple unit construction.

"Demand for existing homes in Charlottetown has been very stable, but a decline is expected both this year and in 2011," said Freeze. The pace of household growth has been strong in recent years and as this subsides fewer homes will be sold. The average price of existing home sales is forecast to dip marginally. Slightly reduced demand along with fewer new homes on the market will contribute to the decline in 2010 with average price substantially unchanged in 2011, according to Freeze. 

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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