St. John's Area Housing Market to Remain Flat

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Oct. 26, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC) Fall Housing Market Outlook - St. John's report, housing market activity is expected to remain flat and will be driven less by speculative construction and more by motivated buyers as housing demand cools over the forecast period.

"Residential sales and new home construction activity are expected to remain flat through 2017," said Chris Janes, Senior Market Analyst with CMHC's Atlantic Market Analysis Centre. "This is mainly due to muted economic growth caused by a lower commodity price environment, particularly the price of oil," added Janes.

New home construction activity in the St. John's area will be lower, with single-detached housing starts forecast at 700 units this year, with 800 starts in 2016 and 850 starts in 2017. The multiple unit segment of the market is expected to see 275 units this year, with 300 in 2016 and 325 in 2017.

The resale market will post 3,300 sales this year, with 3,250 sales expected in 2016 and 3,200 in 2017. Price growth is forecast to be mixed, with the average MLS^® house price expected to decline about two per cent to $300,000 this year, before rebounding slightly to $303,000 in 2016 and $306,000 in 2017.

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.

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

Additional data is available upon request

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