Lower Activity Expected for St. John's Housing Market

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - May 30, 2011) - Current pricing and an increasing supply of active listings will contribute to lower housing market activity throughout the St. John's area over the coming months, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook - St. John's report released today.

Housing starts are expected to end 2011 at 1,475 units, with 1,420 starts forecast for 2012. The resale market will post 3,350 sales by the end of this year with 3,200 units expected in 2012. The average MLS^® house price is expected to end 2011 at $263,000 and increase marginally to $268,500 in 2012.

"Robust consumer spending and growth in employment, income and population have buoyed the local housing market in recent years," said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. "From an overall historical perspective, the outlook for the St. John's area housing market is solid, but record housing market activity over the last two years will not be sustainable in 2011 and 2012," added Janes.

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.

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

For more information, visit www.cmhc.ca or call 1-800-668-2642.

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