HALIFAX, NOVA SCOTIA--(Marketwire - May 30, 2011) - According to Canada Mortgage and Housing Corporation's (CMHC's) latest forecast an improving economic outlook, along with historically low interest rates will provide a solid foundation for the housing sector in 2011.
"High energy prices and moderating income growth, however, will keep housing activity below 2010 levels, "said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.
A pullback in housing activity following significant gains in 2010 is expected in 2011. Single starts will show a moderate drop of close to eleven per cent. Multiple starts, which saw very strong growth of over 40 per cent in 2010, are expected to decrease close to 14 per cent in 2011.
For 2011, existing house prices are forecast to increase across Atlantic Canada from a high of close to five per cent in Newfoundland and Labrador (NL), two per cent in Nova Scotia (NS), and close to one per cent in New Brunswick (NB) and Prince Edward Island (PEI). Existing home sales are expected to decline in 2011. Sales declines will vary across Atlantic Canada from four per cent in NS and NB, close to six per cent in NL and close to eight per cent in PEI.
As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high 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 informed decisions.
The Housing Market Outlook, Atlantic Region Highlights report is available on the CMHC Web site: http://www.cmhc.gc.ca
| Atlantic Housing Market Outlook1 | |||||
| Total Housing Starts | 2010 Actual | 2011 Forecast | 2012 Forecast | ||
| New Brunswick | 4,101 | 3,320 | 3,185 | ||
| Forecast Ranges | 3,060-3,580 | 2,875-3,495 | |||
| Nova Scotia | 4,309 | 3,975 | 3,775 | ||
| Forecast Ranges | 3,650-4,300 | 3,400- 4,150 | |||
| Prince Edward Island | 756 | 700 | 670 | ||
| Forecast Ranges | 640-760 | 600-740 | |||
| Newfoundland and Labrador | 3,606 | 3,250 | 3,150 | ||
| Forecast Ranges | 3,000-3,500 | 2,875-3,425 | |||
| Atlantic Region Total | 12,772 | 11,245 | 10,780 | ||
| Forecast Ranges | 10,350-12,140 | 9,750-11,810 | |||
| Atlantic Housing Market Outlook1 | |||||
| Total MLS®Sales2 | 2010 Estimate | 2011 Forecast | 2012 Forecast | ||
| New Brunswick | 6,702 | 6,425 | 6,265 | ||
| Forecast Ranges | 6,100-6,750 | 5,900-6,630 | |||
| Nova Scotia | 10,036 | 9,650 | 9,450 | ||
| Forecast Ranges | 9,200-10,100 | 8,900-10,000 | |||
| Prince Edward Island | 1,487 | 1,375 | 1,340 | ||
| Forecast Ranges | 1,300-1,450 | 1,250-1,430 | |||
| Newfoundland and Labrador | 4,236 | 4,000 | 3,900 | ||
| Forecast Ranges | 3,750-4,250 | 3,600-4,200 | |||
| Atlantic Region Total | 22,461 | 21,450 | 20,955 | ||
| Forecast Ranges | 20,350-22,550 | 19,650-22,260 | |||
SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2011.
(1) The forecasts included in the Housing Market Outlook are based on information available as of April 28th 2011. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).(1)
| Atlantic Housing Market Outlook1 | |||||
| Average MLS®Price ($)2 | 2010 Estimate | 2011 Forecast | 2012 Forecast | ||
| New Brunswick | $157,240 | $159,500 | $161,500 | ||
| Forecast Ranges | 158,000-161,000 | 159,600-163,500 | |||
| Nova Scotia | $206,186 | $211,000 | $214,000 | ||
| Forecast Ranges | 209,000-213,000 | 211,350-216,500 | |||
| Prince Edward Island | $147,196 | $148,250 | $149,250 | ||
| Forecast Ranges | 147,000-149,500 | 147,500-151,000 | |||
| Newfoundland and Labrador | $235,341 | $247,500 | $252,500 | ||
| Forecast Ranges | 242,500-252,500 | 247,500-257,500 | |||
| Atlantic Region Total | $193,174 | $198,358 | $201,329 | ||
| Forecast Ranges | 195,939-200,784 | 198,387-204,230 | |||
SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2011.
(1) The forecasts included in the Housing Market Outlook are based on information available as of April 28th 2011. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).(1)
Contact Information:
Regional Economist
CMHC
(902) 426-8964
amacdona@cmhc-schl.gc.ca