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New Brunswick mortgage rates update

The CMHC reports that in New Brunswick's positive net migration, historically high employment levels,
rising salaries, and relatively low mortgage rates have bolstered housing demand, allowing the market for
new family homes to stop from slowing down, in contrast to the trend across Canada.

New Brunswick's economic growth prospects cool for 2008
The provinces level of economic growth will be negatively affected by the high Canadian dollar and energy
prices, in addition to the forecasted US economic slowdown.
As the Canadian dollar is expected to stay strong, New Brunswick's main
challenge for future employment prospects will be the need to move people from

a
manufacturing/export base into the service economy. Employment growth
should increase 1% in 2008 and in 2009 as capital investment continues to
support growth. Economic growth is expected to decline to 2.0 per cent in 2008 before reaching 2.3 per
cent in 2009.

New Brunswick housing resale market to decline in 2008

In 2007, New Brunswick was a good place to be for first time home buyers as they experienced favourable
market conditions which provided access to home ownership for this market segment. CMHC forecasts
that for MLS sales will decline to 7,750 units in 2008, followed by a smaller decline to 7,500 in 2009.

New Brunswick house prices expected to rise to $142,000 in 2008
Sales activity is expected to slow in the province during the year, however, the average price of homes is
still expected to increase to $142,00 in 2008, rising to $146,000 in 2009.
New Brunswick key stats
Metric
New
Brunswick
Canada
Population
2007
749,800
32,568,000
Consumer Price Index
Mar'08 (2002 = 100)
112
113
Average earnings
(Feb'08)
$37,690
$40,914
Unemployment rate
(Mar'08 )
8.5%
6.0%
Housing starts
(Mar'08)
4,300
243,000

Average
Residential Resale
Price

(annual %
change)
2007 (E)
$136,603
7.7%
$306,397*
10.6%
2008 (F)
$142,000
4.0%
$322,400*
5.2%
2009 (F)
$146,000
2.8%
$334,500*
3.8%

Mortgages
approved by
lenders,
residential 2006

Chartered
banks
$1,891,730,00
0
$152,478,903,00
0
Trust
companies
$114,603,000
$6,664,898,000

Life and
companies
other

$589,045,000
$30,225,144,000
Total
$2,595,378,00
0
$189,368,945,00
0

Source: Stats Canada, Canadian Real Estate Association
2007 E = estimated by the CMHC
* Canada calculation excludes Yukon and Northwest Territories
Data based on application received date
Mortgage approval data are gross and may not fully capture lending activities of credit unions, caisses populaires, other smaller
institutions and privately-insured loans in some areas
Quebec data is understated due to low response rate to the surveys in that province.
*Conventional Lending data only

Local Market Indicators
Census Metropolitan
Area
Total Housing
Starts
MLS
sales
MLS average
price
Saint John
2007
687
2,253
$140,544
2008 (F) 650
2,100
$146,000
2009 (F) 625
2,000
$152,000
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