The Best Mortgage Rates in Saint John

Saint John Key Stats

• Saint John population (2011): 70,063
• Dwelling units (2012): 33,530
• Unemployment Rate (2012): 6.0
• Average Household Income (2012): $69,100

Source: Stats Canada, CMHC

Saint John Mortgage Rates to Moderate in 2013

Mortgage rates are expected to remain at historical lows for the first portion of 2012 before moderating later in the year. The CMHC forecasts that the one-year posted mortgage rate will be within the 3.1 to 3.6 range, with five-year posted rates in the range of 5.0 to 5.4 per cent. Rates are expected to rise in 2013 to 3.5 to 4.1 per cent for one-year, and 5.1 to 5.6 per cent for five-year mortgage rates.

Source: CMHC

Saint John 2012 Housing Market Outlook

The Saint John housing market is to contract this year and the next due to fewer available full time jobs in the service, trade and transport sectors. This decline in employment is expected to last throughout 2012. These economic conditions will continue to mute any previous gains from the energy sector, and will lead to lower migration and higher vacancy levels as a result.

Residential construction will decline along with the contracting economy, a trend that began in 2011 as starts significantly decreased after five years of record high growth. While single starts will remain virtually unchanged from 2011's record low of 220 units this year, they will decline further to 200 units in 2013. This downward trend will also be seen in multi family starts.

While resale trends saw a six per cent year-over-year rebound in the first quarter of the year, 2012 is anticipated to experience an overall decline to 1,525 units, down from 1,572 units in 2011. This will decrease further to 1,500 in 2013. The average Saint John resale price will also decrease in 2012 to $ 170,354, before rising again to a forecasted $172,500 in 2013.

Source: CMHC Housing Market Outlook

Saint John Housing Market & Mortgage Rate Forecast

• 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