HALIFAX, May 18 2016 — According to Canada Mortgage and Housing Corporation’s (CMHC’s) Quarterly Housing Market Outlook, housing starts in Atlantic Canada are expected to decline moderately in 2016 within a range of 7,130 and 7,350 units. Starts will then move up slightly in 2017, being in the range of 7,075 and 7,835 units.
Foreground: Alex MacDonald, Regional Economist (Atlantic)
Background: Boardroom setting, plants, window.
Alex MacDonald: “Economic growth will remain stable in 2016 and 2017 in three of the four provinces in Atlantic Canada including Nova Scotia New Brunswick and Prince Edward Island as these provinces continue to benefit from tourism, shipbuilding and exports. As a result, housing starts in Atlantic Canada are expected to remain within a narrow range, declining moderately in 2016 before moving up slightly in 2017.”
Newfoundland and Labrador
The single-detached housing market will range from 1,135 to 1,165 single starts this year and between 945 and 1,055 starts in 2017.
The range for multiples will be from 270 to 350 units this year and from 245 to 355 units in 2017.
MLS® sales will range between 3,935 to 3,965 units this year and between 3,605 to 3,795 units in 2017.
Average prices are expected to be in the range of $254,515 to $269,485 this year and $247,715 to $262,285 in 2017.
Single-detached housing starts are forecast to range from 1,080 to 1,120 units in 2016 and then shift to between 1,100 and 1,150 units by 2017.
Multiple starts are expected to fall within the range of 665 and 735 units for 2016 before seeing a rise to between 740 and 860 units by 2017 as more supply is needed to satisfy rising demand from an aging population.
MLS® sales are expected to be between 6,635 to 6,765 units in 2016 and 6,720 to 7,080 units in 2017.
Average prices are expected to range between $156,310 to $157,690 in 2016 and $157,410 to $160,390 by 2017.
Prince Edward Island
The single-detached housing market will range from 290 to 310 single starts in 2016 and between 310 and 340 starts in 2017.
Multiple starts will range from 195 to 265 units in 2016 and between 215 to 295 units in 2017.
MLS® sales will range between 1,745 to 1,805 units in 2016 and between 1,650 to 1,750 units in 2017.
Prices are expected to be in the range of $168,265 to $171,735 in 2016 and $172,320 to $177,680 in 2017.
Single-detached housing starts are expected to range from 1,480 to 1,520 units in 2016 with the forecast shifting marginally to 1,475 to 1,525 in 2017.
Although total multiples starts are forecasted to decline from the strong levels recorded in 2015, they will still remain elevated at between 1,865 to 2,035 units in 2016 and 2,000 to 2,300 units in 2017.
MLS® resales will be within a range of 9,300 to 9,500 units in 2016 with the range shifting up marginally in 2017 to between 9,320 and 9,680 units.
Average prices in the province will be in the range of $221,065 and $221,935 in 2016 and between $220,805 and $225,195 by 2017.
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.
“Economic growth will remain stable in 2016 and 2017 in Nova Scotia, New Brunswick and Prince Edward Island. Tourism, shipbuilding and exports will continue to be the primary economic drivers. As a result of this economic stability, MLS® sales and average prices for existing homes are also forecast to remain flat over this period.”
— Alex MacDonald, Regional Economist (Atlantic), Canada Mortgage and Housing Corporation