According to Canada Mortgage and Housing Corporation’s (CMHC’s) Spring Housing Market Outlook – St. John’s report, favourable economic and demographic conditions will continue to support the housing market in 2014 and 2015, but activity will be at lower levels than in recent years.
“Healthy economic activity continues to generate population expansion, employment growth and higher earnings, but despite stable demand factors, housing market growth is expected to slow throughout the St. John’s area 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 1,100 units for 2014 and 1,025 units in 2015. The multiple unit segment of the market is expected to see 540 new units start construction this year, with 595 units in 2015.
The resale market will post 3,450 sales by the end of this year, with 3,400 sales expected in 2015.
Moderate price growth is forecast for this year and next, with the average MLS® house price expected to reach $310,000 by the end of 2014 and increase to $315,000 in 2015.
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.
Read the full report: St. John’s Spring 2014 Housing Market Outlook