Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2009 23:59 ET

Housing Starts Will Rebound in 2010

HALIFAX, May 19 - According to Canada Mortgage and Housing
Corporation's (CMHC's) latest outlook, housing starts are forecast to decrease
in 2009 in Atlantic Canada but rise marginally in 2010. Both singles and
multiples will see a decline in activity in 2009, as overall economic growth
is impacted by the global slowdown.
"The housing sector is expected to show positive growth in 2010, as
consumers continue to take advantage of the favorable interest rate
environment and a recovery begins to take hold, due in part to additional
fiscal and monetary stimulus," said Alex MacDonald, regional economist, with
CMHC's Atlantic Business Centre.
Multiple starts are expected to decline in 2009, but row housing remains
popular in some urban centres across Atlantic Canada, as the current price of
housing continues to shift some consumers away from more costly
single-detached units. Higher prices will also continue to ease overall demand
for single starts in 2009.
In 2009, existing home sales activity is expected to decrease across the
region. There is some downside risk to the forecast, if consumers remain
cautious and income growth is weaker than expected in 2009, but this is less
of a consideration at this point compared to six months ago.
As a result, 2010 becomes a year for rebuilding momentum in the market
with sales expected to rise just under five per cent. This will result in
prices remaining slightly positive overall in Atlantic Canada in 2009 and
rising 2.5 per cent in 2010.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for more than 60 years. CMHC is committed to helping Canadians
access a wide choice of quality, affordable homes, while making vibrant,
healthy communities and cities a reality across the country. For more
information, visit www.cmhc-schl.gc.ca or call 1 800 668-2642.




Atlantic Housing Market Outlook(1)
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Total Housing Starts 2008 2009 2010
Actual Forecast Forecast
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New Brunswick 4,274 3,475 3,650
Forecast Ranges 2,900-3,700 2,750-4,000
Nova Scotia 3,982 3,100 3,425
Forecast Ranges 2,750-4,100 3,000-4,400
Prince Edward Island 712 575 625
Forecast Ranges 525-625 575-675
Newfoundland and Labrador 3,261 2,675 2,975
Forecast Ranges 2,400-3,200 2,100-3,000
Atlantic Region Total 12,229 9,825 10,675
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Forecast Ranges 8,575-11,625 8,425-12,075
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Atlantic Housing Market Outlook(1)
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Total MLS® Sales(2) 2008 2009 2010
Actual Forecast Forecast
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New Brunswick 7,555 6,500 6,750
Forecast Ranges 6,000-7,500 5,800-7,250
Nova Scotia 10,874 9,000 9,500
Forecast Ranges 8,500-9,500 9,000-10,000
Prince Edward Island 1,413 1,300 1,325
Forecast Ranges 1,200-1,350 1,250-1,450
Newfoundland and Labrador 4,695 4,000 4,200
Forecast Ranges 3,700-4,300 3,750-4,400
Atlantic Region Total 24,538 20,800 21,775
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Forecast Ranges 19,400-22,650 19,800-23,100
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SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter
2009.

(1) The forecasts included in the Housing Market Outlook are based on
information available as of April 30. Where applicable, forecast
ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS® stands for Multiple Listing Service and is a
registered trademark of the Canadian Real Estate Association (CREA).

Atlantic Housing Market Outlook(1)
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Average MLS® Price 2008 2009 2010
($)(2) Actual Forecast Forecast
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New Brunswick $145,762 $146,500 $149,000
Forecast Ranges 143,000-152,000 146,000-155,000
Nova Scotia $189,902 $190,000 $195,000
Forecast Ranges 187,000-196,000 188,000-200,000
Prince Edward Island $139,944 $140,250 $141,500
Forecast Ranges 138,000-145,500 138,000-148,500
Newfoundland and Labrador $178,477 $192,500 $198,000
Forecast Ranges 185,000-195,000 192,000-205,000
Atlantic Region Total $171,247 $173,777 $178,064
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Forecast Ranges 169,984-178,231 173,298-183,596
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SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter
2009.

(1) The forecasts included in the Housing Market Outlook are based on
information available as of April 30. Where applicable, forecast
ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS® stands for Multiple Listing Service and is a
registered trademark of the Canadian Real Estate Association (CREA).

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