Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

September 03, 2009 23:59 ET

Housing activity to rebound in second half of 2009 and in 2010

OTTAWA, Sept. 3 - Housing starts are expected to rebound in the second half of 2009 and will reach 141,900 for the year. Starts will increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation's (CMHC) third quarter Housing Market Outlook, Canada Edition(*) report. The overall forecast totals for housing starts remain unchanged from the second quarter release.

"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(R))(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(R) 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.

This release is also available on the CMHC Web site:

(*) 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.

                       National Housing Outlook

Key Housing Market Indicators


                                           2008        2009        2010

                                          Actual    Forecasts   Forecasts


Total housing starts (units)             211,056     141,900     150,300

Total single-detached houses              93,202      68,400      72,450

Total multiple housing units             117,854      73,500      77,850

Total MLS(R) sales(1)                    433,990     420,700     419,400

Average MLS(R) selling price ($)         303,607     301,400     306,300


                     Provincial Housing Outlook

Total Housing Starts


                                           2008        2009        2010

                                          Actual    Forecasts   Forecasts


Newfoundland and Labrador                  3,261       2,950       3,000

Prince Edward Island                         712         625         640

Nova Scotia                                3,982       3,050       3,325

New Brunswick                              4,274       3,285       3,500

Quebec                                    47,901      43,175      41,100

Ontario                                   75,076      48,675      50,000

Manitoba                                   5,537       4,000       4,300

Saskatchewan                               6,828       3,750       4,150

Alberta                                   29,164      16,100      18,250

British Columbia                          34,321      16,250      22,000


SOURCE: CMHC Housing Market Outlook, Canada Edition, Third Quarter 2009.

Totals may not add due to rounding.


(1) The term MLS(R) 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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