• Population: 187,600 (Stats Canada 2009)
• GDP growth of 2.5% for Newfoundland-Labrador in 2010 and a 3% increase in 2011.

Saint John Mortgage Rates Will Slowly increase in 2010.

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Saint John 2010 Housing Outlook

The CMHC reported that housing demand will continue to be supported by an increase in net migration and population growth, a large capital project activity and improved employment. MLS sales in Saint John are forecast to produce 3,650 units in 2010 and 3,600 units in 2011. This is an expected increase in first time home-buyers. A balanced market is forecast for 2010 and 2011. Price will continue to grow but at a moderate rate. The average MLS sale price is expected to be $245,000 in 2010, which is a 12% increase from 2009. In 2011, further growth will be visible with a 4% increase and prices reaching $255,000.

Single starts are forecast to increase 4% in 2010 with 1,775 units and an additional 7% in 2011 with 1,900 units. Multiple starts are also expected to increase during the 2010-2011 period going from 325 units to 350 units respectively. With income growth expected, first time home-buyers are expected to be driven to the housing market.

CMHC Saint John housing market & Saint John mortgage rate forecast