Housing starts expected to slow in St. John's area

The Canada Mortgage and Housing Corporation says demand for housing In St. John's will continue, but at a slower pace.

CMHC forecasts single-digit price growth for resale market in 2013 and 2014

The CMHC says economic and demographic factors will see demand for housing continue in the St. John's region. (CBC)

The Canada Mortgage and Housing Corporation says demand for housing will continue, but at a slower pace throughout the St. John's area in 2013 and 2014.

"Housing market activity will be slightly lower than last year's highs, but will continue to be supported by low mortgage rates, income growth, full-time employment gains and positive migration 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 1,400 units for 2013 and 1,350 units in 2014.

The multiple unit segment of the market is expected to see 550 new units start construction this year, with 475 units in 2014.

The resale market will post 3,600 sales by the end of this year, with 3,500 sales expected in 2014.

CHMC is forecasting low single-digit price growth for this year and next.

The average price of houses sold through the MLS system is expected to reach $297,500 by the end of 2013 and increase to $306,000 in 2014.