Housing Starts to Decline in St. John's Area

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - June 25, 2013) - According to Canada Mortgage and Housing Corporation's (CMHC's) Spring Housing Market Outlook - St. John's report, solid economic and demographic factors will see demand for housing continue, but at a slower pace throughout the St. John's area in 2013 and 2014.

"Housing market activity will be slightly lower than last year's highs, but will continue to be supported by low mortgage rates, income growth, full-time employment gains and positive migration over the forecast period," 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 lower this year and next, with single-detached housing starts forecast at 1,400 units for 2013 and 1,350 units in 2014. The multiple unit segment of the market is expected to see 550 new units start construction this year, with 475 units in 2014.

The resale market will post 3,600 sales by the end of this year, with 3,500 sales expected in 2014. Low single-digit price growth is forecast for this year and next, with the average MLS^® house price expected to reach $297,500 by the end of 2013 and increase to $306,000 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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MLS^® is a registered trademark of the Canadian Real Estate Association.

Additional data is available upon request.

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