Charlottetown Housing Market to Return to More Sustainable Levels



    CHARLOTTETOWN, May 19 /CNW/ - The outlook for the Charlottetown housing
market remains positive, reports Canada Mortgage and Housing Corporation
(CMHC) in its Housing Market Outlook - Charlottetown report which was released
today.
    "The local housing market has been performing well above average since
2002, but is expected to return to more sustainable levels this year and next
due to heightened economic uncertainty," said Jason Beaton, market analyst
with CMHC in Prince Edward Island. While positive in-migration and low
interest rates are expected to persist, it will not be enough to offset the
declines as households remain cautious in the current economic environment. As
such it is expected that single-detached construction in the capital region
will slow to 225 units in 2009, before rebounding to 250 units in 2010.
    "With economic uncertainty, existing home sales are expected to decline
this year before posting a moderate increase in 2010," said Mr. Beaton.
Despite the expected decline in unit sales for 2009, the average sale price
will continue to climb. Expect to see 540 units sold in 2009, down from 595
sales in 2008.
    For more information, visit www.cmhc.ca or call 1-800-668-2642.

    (Ce document existe également en français)

    
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                               Forecast Summary
                               Charlottetown CA
                                 Spring 2009
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                      2006     2007     2008    2009f   % chg    2010f  % chg
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Resale Market
    -------------------------------------------------------------------------
    MLS(R) Sales       634      650      595      540    -9.2      555    2.8
    -------------------------------------------------------------------------
    MLS(R) New
     Listings          783      817      975      940   1,000      900   -4.3
    -------------------------------------------------------------------------
    MLS(R) Average
     Price ($)     153,549  166,244  175,231  177,000     1.0  179,500    1.4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    New Home Market
    -------------------------------------------------------------------------
    Starts:
    -------------------------------------------------------------------------
      Single-
       Detached        276      295      280      225   -19.6      250   11.1
    -------------------------------------------------------------------------
      Multiples        191       99      146      125   -14.4      125    0.0
    -------------------------------------------------------------------------
      Starts - Total   467      394      426      350   -17.8      375    7.1
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Average Price ($):
    -------------------------------------------------------------------------
      Single-
       Detached    186,774  192,477  207,361  192,500    -7.2  198,275    3.0
    -------------------------------------------------------------------------
    Median Price ($):
    -------------------------------------------------------------------------
     Single-
      Detached     175,000  180,000  200,000  206,000     3.0  185,500  -10.0
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    New Housing
     Price Index
     (% chg.)          2.2      1.3      1.4      3.0       -      3.0      -
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Rental Market
    -------------------------------------------------------------------------
    October
     Vacancy
     Rate (%)          4.8      4.3      2.3      2.0    -0.3      1.8   -0.2
    -------------------------------------------------------------------------
    Two-bedroom
     Average Rent
     (October) ($)     638      659      672      715       -      735      -
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Economic Overview
    -------------------------------------------------------------------------
    Mortgage
     Rate
     (1 year) (%)     6.28     6.90     6.70     5.57       -     6.41      -
    -------------------------------------------------------------------------
    Mortgage Rate
     (5 year) (%)     6.66     7.07     7.06     6.63       -     7.07      -
    -------------------------------------------------------------------------
    Annual
     Employment
     Level (,000)   32,175   32,450   32,925   32,500    -1.3   32,825   1.00
    -------------------------------------------------------------------------
    Employment
     Growth (%)        1.8      0.9      1.5      1.0       -      1.0      -
    -------------------------------------------------------------------------
    Unemployment
     rate (%)          7.6      6.6      7.6      7.4       -      7.6      -
    -------------------------------------------------------------------------
    Net Migration
     (P.E.I.) (1)     -111      417      868      500   -42.4      325  -35.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    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) 2007 migration data is forecasted
    




For further information:

For further information: Jason Beaton, Market Analyst, Canada Mortgage
and Housing Corporation, (506) 851-6047, jbeaton@cmhc-schl.gc.ca


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