Continued Growth in St. John's Housing Market
ST. JOHN'S, May 19 /CNW/ - Resilient consumer spending, large capital projects and employment growth will continue to support the St. John's region housing market throughout the remainder of 2010 and in 2011, 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 2010 at 1,775 units, with 1,900 starts forecast for 2011. The resale or MLS(R)(1) market will post 3,650 sales by the end of this year and reach the 3,600 level in 2011. The average MLS(R) house price is expected to end 2010 at $245,000 compared to $218,862 in 2009 and increase to $255,000 in 2011.
"Despite the recent global economic uncertainty, strong fundamentals will continue to support demand for housing throughout the remainder of 2010 and in 2011," said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. "Overall, the positive outlook for the St. John's area housing market will be reinforced by favourable trends in demographic and economic fundamentals, as well as on-going economic momentum fuelled by a lengthy list of major capital projects," added Janes.
As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.
(1) MLS(R) is a registered trademark of the Canadian Real Estate
Association.
For more information, visit www.cmhc.ca or call 1-800-668-2642.
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Forecast Summary
St. John's CMA
Spring 2010
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% %
2007 2008 2009 2010f chg 2011f chg
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Resale Market
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MLS(R) Sales NA 3,835 3,642 3,650 0.2 3,600 -1.4
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MLS(R) New
Listings NA 7,520 7,427 7,500 1.0 7,450 -0.7
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MLS(R) Average
Price($) NA 187,571 218,862 245,000 11.9 255,000 4.1
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New Home Market
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Starts:
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Single-Detached 1,174 1,485 1,385 1,450 4.7 1,550 6.9
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Multiples 306 378 318 325 2.2 350 7.7
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Starts - Total 1,480 1,863 1,703 1,775 4.2 1,900 7.0
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Average Price ($):
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Single-
Detached 211,123 230,473 281,803 315,250 11.9 328,250 4.1
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Median Price ($):
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Single-
Detached 189,900 215,372 260,000 291,000 11.9 303,000 4.1
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New Housing
Price Index
(% chg.) 5.0 19.6 11.5 8.0 n/a 5.0 n/a
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Rental Market
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October Vacancy
Rate (%) 2.6 0.8 0.9 1.0 0.1 1.3 0.3
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Two-bedroom
Average Rent
(October) ($) 614 630 677 725 6.0 775 11.0
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Economic Overview
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Mortgage Rate
(1 year) (%) 6.90 6.70 4.02 4.23 0.20 5.56 1.34
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Mortgage Rate
(5 year) (%) 7.07 7.06 5.63 6.20 0.57 7.06 0.86
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Annual
Employment
Level 94,400 98,000 99,200 100,000 0.8 102,000 2.0
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Employment
Growth (%) 1.4 3.8 1.3 0.8 n/a 2.0 n/a
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Unemployment
rate (%) 6.9 7.8 8.1 8.0 n/a 7.5 n/a
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Net
Migration(1) 1,386 2,408 2,750 3,000 9.1 2,850 -5.0
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MLS(R) is a registered trademark of the Canadian Real Estate Association (CREA).
Source: CMHC (Starts and Completions Survey, Market Absorption Survey), adapted from Statistics Canada (CANSIM), CREA, Statistics Canada (CANSIM)
NOTE: Rental universe = Privately initiated rental apartment structures of three units and over
(1) 2009 migration data is forecasted
For further information: on this release: Chris Janes, Senior Market Analyst - NL, (709) 772-2403, [email protected]
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