Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2009 23:59 ET

Housing Activity Will Moderate in 2009, Improve in 2010

OTTAWA, May 19 - Housing starts are expected to decline to
141,900 for 2009, but increase to 150,300 for 2010, according to Canada
Mortgage and Housing Corporation's (CMHC) second quarter Housing Market
Outlook, Canada Edition(*) report.
"The decline in housing starts in 2009 can be attributed to several
factors, including the current economic climate, increased competition from
the existing home market, and the impact of strong house price growth between
2002 and 2007" said Bob Dugan, Chief Economist for CMHC. "However, housing
market activity will begin to strengthen in 2010 as the Canadian economy
recovers, bringing housing starts more in line with demographic fundamentals
over the forecast period".
Existing home sales, as measured by the Multiple Listing Service
(MLS®)(1), are expected to decline to 357,800 units in 2009 from 433,990 in
2008, but increase to 386,100 units in 2010. The average MLS® price is also
expected to decrease to $283,100 in 2009 and to stabilize in 2010.

As Canada's national housing agency, Canada Mortgage and Housing
Corporation (CMHC) draws on more than 60 years of experience to help Canadians
access a variety of quality, environmentally sustainable, and affordable homes
- homes that will continue to create vibrant and healthy communities and
cities across the country.




This release is also available
on the CMHC Web site:
http://www.cmhc-schl.gc.ca

(*) The forecasts included in the Housing Market Outlook are based on
information available as of April 30, 2009. Where applicable, forecast
ranges are also presented in order to reflect economic uncertainty.


National Housing Outlook

Key Housing Market Indicators
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2008 2009 2010
Actual Forecasts Forecasts
----------------------------------------------------
Total housing starts
(units) 211,056 141,900 150,300
Forecast Ranges 125,000-160,000 130,000-180,000

Total single-detached
houses 93,202 62,400 68,000
Forecast Ranges 53,800-71,000 60,500-81,200

Total multiple housing
units 117,854 79,500 82,300
Forecast Ranges 71,200-89,000 69,500-98,800

Total MLS® sales(1) 433,990 357,800 386,100
Forecast Ranges 320,000-380,000 350,000-430,000

Average MLS®
selling price ($) 303,607 283,100 283,100
Forecast Ranges $270,000-$295,000 $270,000-$300,000
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Provincial Housing Outlook

Total Housing Starts
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2008 2009 2010
Actual Forecasts Forecasts
----------------------------------------------------
Newfoundland and Labrador 3,261 2,675 2,975
Prince Edward Island 712 575 625
Nova Scotia 3,982 3,100 3,425
New Brunswick 4,274 3,475 3,650
Quebec 47,901 40,000 41,350
Ontario 75,076 51,325 52,300
Manitoba 5,537 3,950 4,250
Saskatchewan 6,828 3,400 3,850
Alberta 29,164 13,700 16,200
British Columbia 34,321 19,725 21,700
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SOURCE: CMHC Housing Market Outlook, Canada Edition, Second Quarter 2009.
Totals may not add due to rounding.


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(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.

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