Housing Starts to Decrease in Charlottetown

MONCTON, NEW BRUNSWICK--(Marketwire - Nov. 5, 2012) - According to Canada Mortgage and Housing Corporation's (CMHC's) Fall Housing Market Outlook - Charlottetown report, residential construction in Prince Edward Island's largest urban centre is expected to increase slightly in 2012 before declining in 2013.

"An increase in multiple starts in Charlottetown will result in more total housing starts in 2012," said Jason Beaton, CMHC's Market Analyst for Prince Edward Island. Single starts are expected to remain essentially unchanged in 2012 compared to 2011, while multiple starts will exceed the level set last year. The decline in multiple starts in 2013 will result from a rising vacancy rate and reduced levels of international immigration.

The forecast for the resale market calls for an essentially flat level of MLS^® sales and limited price growth through the end of 2013. "The Charlottetown area has averaged 550 sales for the past six years, and the current forecast is for both 2012 and 2013 to be very near that level," added Beaton. Price growth will also record limited gains in both 2012 and 2013, as an ample supply of listings will result in more choice for prospective buyers.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of 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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