St. John's Area Housing Market to Remain Solid

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Nov. 4, 2011) - A strong economic outlook will continue to support the local housing market for the remainder of this year and throughout 2012, according to Canada Mortgage and Housing Corporation's (CMHC's) Fall Housing Market Outlook - St. John's report.

Housing starts are expected to end 2011 at 1,850 units, with 1,650 starts forecast for 2012. The resale market will post 3,350 sales by the end of this year and 3,200 sales in 2012. The average MLS^® house price is expected to end 2011 at $265,000 and increase marginally to $270,000 in 2012.

"Strong consumer spending and growth in employment, income and population have buoyed the local housing market in recent years and is expected to continue," said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. "The outlook for the St. John's area housing market remains solid, but recent levels of activity are expected to normalize in 2012," added Janes.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high 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 http://www.cmhc.ca/housingmarketinformation.

¹ MLS^® is a registered trademark of the Canadian Real Estate Association.