The Honourable Peter MacKay, Minister of National Defence and Minister Responsible for Newfoundland and Labrador, on behalf of  the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and the Honourable Tom Hedderson, Minister of Transportation and Works and Minister Responsible for Newfoundland Labrador Housing (Housing), today announced $350,000 to support the construction of ten new housing units in Bishop’s Falls.

Funding for this project has been made available through Canada’s Economic Action Plan. The Federal and Provincial governments are contributing equally to this overall investment of $58 million under the amended Canada – Newfoundland and Labrador Affordable Housing Program Agreement.

“Through Canada’s Economic Action Plan, our government is taking concrete action to help ensure our economic recovery and create the conditions for long-term growth,” said Minister MacKay. “Funding new construction projects like these projects will not only improve the overall housing conditions, and quality of life of its residents by keeping their homes safe and affordable for years to come, but also help stimulate the local economy and create jobs.”

“We believe sound investments in projects such as this affordable housing development in Bishop’s Falls, will provide more opportunities for seniors and persons with disabilities to live independently within their communities,” said Minister Hedderson. “Through Newfoundland Labrador Housing, the William’s Government, along with our federal and private sector partners, remains committed to further investments in affordable housing options for seniors and persons with disabilities.”

“We are pleased to be a partner in this enterprise and to be able to provide suitable affordable for lower-income households in the Exploits area,” said James Joy, of Exploits 2000 Inc, Grand Falls – Windsor. “This partnership between the federal and provincial governments and our company has also helped create much needed employment in our area.”

The project will involve the construction of ten two-bedroom units, including one unit for persons with disabilities on Hampton’s Hill in Bishop Fall’s. The federal/provincial funding includes $315,000 under Housing for Low-Income Seniors as well as $35,000 from Housing for Persons with Disabilities. The proponent will provide the remaining funding to cover the cost of the project. The anticipated completion date for this project is October 2010.

Canada’s Economic Action Plan provides $475 million, over two years, to build new rental housing for low-income seniors and persons with disabilities. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

One of the key objectives for the Provincial Government is to stimulate the development of affordable rental housing in the private, public and non-profit sectors. Provincial priority is on rental housing for seniors, persons with disabilities and those who require supports to live independently in the community.

Resilient consumer spending, large capital projects
and improved employment will continue to support the St. John’s region housing market
throughout the remainder of 2009 and in 2010, according to Canada Mortgage and
Housing Corporation’s (CMHC’S) Housing Market Outlook – St. John’s report released
today.
Housing starts are expected to end 2009 at 1,675 units, with 1,800 starts forecast for
2010. The resale or MLS®1 market will post 3,450 sales by the end of this year and reach
the 3,575 level in 2010. The average MLS® house price is expected to end 2009 at
$215,500 compared to $187,571 in 2008 and increase to $225,500 in 2010.
“Despite the recent global economic uncertainty, strong fundamentals will continue to
support demand for housing throughout the remainder of 2009 and in 2010,” said Chris
Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Overall, the
positive outlook for the St. John’s area housing market will be reinforced by favourable
trends in demographic and economic fundamentals, as well as on-going economic
momentum fuelled by a lengthy list of major capital projects,” added Janes.
As Canada’s national housing agency, CMHC draws on more than 60 years of
experience to help Canadians access a variety of quality, environmentally sustainable
and affordable homes. 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 vital decisions.

“Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year”, said Bob Dugan, Chief Economist for CMHC. “In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen.”

Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction.

Existing home sales, as measured by the Multiple Listing Service (MLS®)¹, have rebounded strongly since January and will reach 420,700 units in 2009 and remain close to that level at 419,400 units in 2010. The average MLS® price is expected to moderate to $301,400 in 2009 and to increase to $306,300 in 2010.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of July 23, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

¹ The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.

Information on this release:

Charles Sauriol
CMHC Media Relations
613-748-2799

National Housing Outlook

Key Housing Market Indicators

Provincial Housing Outlook

Total Housing Starts