Housing Starts to be Mixed in Charlottetown

MONCTON, NEW BRUNSWICK--(Marketwired - May 25, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC's) Spring Housing Market Outlook - Charlottetown report, total housing starts in Charlottetown are expected to rise slightly in 2015, followed by a moderate decline in 2016.

"Despite limited economic growth, overall net migration gains in the Charlottetown area are expected to remain sufficiently strong to bolster residential construction in the provincial capital, especially in the multi-residential market," said Claude Gautreau, Senior Market Analyst with CMHC's Atlantic Business Centre.

In the new home market, single-detached starts are expected to record mild declines to 135 and 130 units, respectively, in both 2015 and 2016. Multi-residential starts are forecast to increase slightly in 2015 as rental market expansion accelerates slightly from last year's relatively slow pace.

In the existing homes market, MLS^® sales are expected to remain stable in 2015, followed by a mild decline in 2016. In addition to fewer sales, minimal price growth is expected in the near term. "With the number of active listings significantly higher than the longer-term average, consumers will face less urgency due to ample choices, which will limit price growth over the forecast period," added Gautreau.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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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