New Brunswick Housing to Rebound in 2010

MONCTON, NB, May 19 /CNW/ - Total housing starts in New Brunswick are expected to see a moderate rebound in 2010 following a province wide decline in 2009, according to Canada Mortgage and Housing Corporation's (CMHC) Housing Market Outlook released today.

"An increase in residential housing starts combined with rising MLS(R) sales is expected in New Brunswick in 2010 after seeing reduced activity in both the new home and resale market in most provincial urban centres last year," said Claude Gautreau, CMHC's senior market analyst for New Brunswick. Housing activity during the first quarter of 2010 has yielded positive results as economic fundamentals in the province remained strong, highlighted by historically high employment levels. These conditions are expected to persist over the forecast period.

In New Brunswick's three large urban areas - Saint John, Moncton and Fredericton - residential starts are expected to outpace last year's totals. However, the anticipated increase in housing starts in 2010 and 2011 will be moderate. The existing home market is expected to follow the same general trend with steady price growth in both 2010 and 2011, combined with a moderate increase in sales.

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.

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

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                               Forecast Summary
                               Fredericton CA
                                 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       2,448    2,160    2,166    2,250      3.9    2,350      4.4
    MLS(R)
     Average
     Price ($) 141,117  152,268  159,219  166,500      4.6  174,000      4.5
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    New Home Market
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    Starts:
      Single-
       Detached    432      475      403      430      6.7      440      2.3
      Multiples    204      223      352      285    -19.0      305      7.0
      Starts -
       Total       636      698      755      715     -5.3      745      4.2
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                               Forecast Summary
                                 Moncton CMA
                                 Spring 2010
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                  2007     2008     2009    2010f    % chg    2011f    % chg
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    Resale Market
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    MLS(R)
     Sales       2,849    2,663    2,386    2,475      3.7    2,600      5.1
    MLS(R)
     Average
     Price ($) 140,032  143,173  150,135  155,500      3.6  163,000      4.8
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    New Home Market
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    Starts:        655      566      430      460      7.0      480      4.3
      Single-
       Detached    770      793      543      620     14.2      650      4.8
      Multiples
      Starts -
       Total     1,425    1,359      973    1,080     11.0    1,130      4.6
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                               Forecast Summary
                               Saint John 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       2,253    2,166    1,986    2,000      0.7    2,065      3.3
    MLS(R)
     Average
     Price ($) 140,544  158,117  171,027  175,500      2.6  179,000      2.0

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    New Home Market
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    Starts:
      Single-
       Detached    412      488      369      390      5.7      420      7.7
      Multiples    275      344      290      280     -3.4      295      5.4
      Starts -
       Total       687      832      659      670      1.7      715      6.7
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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)
    

For further information: Claude Gautreau, CMHC Market Analysis Centre, [phone], Cell: [phone], [email protected]