Steady Housing Market Ahead for St. John's Area

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - June 14, 2012) - According to Canada Mortgage and Housing Corporation's (CMHC's) Spring Housing Market Outlook - St. John's report, a solid economic outlook is expected to contribute to a relatively stable housing market for 2012 and 2013.

"Growth in population, income and employment will support the St. John's area housing market for the remainder of this year and in 2013," said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador.

New home construction activity in the St. John's area is expected to be moderately lower this year and next. Single-detached housing starts are forecast to end this year down six per cent to 1,225 units and decline a further nine per cent in 2013 to 1,150 units. The multiple unit segment of the market is expected to see 525 new units start construction this year before declining to 450 units in 2013.

The resale market will post 3,500 sales by the end of this year and decline further to 3,300 sales in 2013. With higher levels of inventory and more moderate housing demand, the expectation is for single-digit price growth this year and next. The average MLS^® house price is expected to end 2012 at $280,000, up about four per cent from last year and increase marginally to $285,000 next year.

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 CMHC Housing Market Information.

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