Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 24, 2009 23:59 ET

Residential Construction and Sales in Halifax will Decline Before Rebounding in 2010

HALIFAX, May 19 - Residential construction and existing home sales
levels in Halifax are expected to decline further in 2009 before rebounding in
2010, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing
Market Outlook - Halifax report released today.
"Many housing demand factors remain quite strong in Halifax," said
Matthew Gilmore, senior market analyst with CMHC's Atlantic Business Centre.
"Employment and wage levels are near record highs, interest rates are
historically low and the population continues to grow. These factors, while
favourable to buyers, will not boost activity in 2009, but are expected to
result in increases in 2010," Gilmore said.
"Both demand and growth in 2009 will be hindered by a heightened level of
uncertainty regarding the extent of the economic downturn and will result in
weaker levels of new home construction and existing home sales," continued
Single starts are expected to fall nearly 24 per cent in 2009 before
recovering by more than ten per cent in 2010. "Decreased demand for
single-detached housing starts is not a new story in Halifax. Single starts
have been trending consistently downward since the 2002 peak," Gilmore added.
Apartment-style construction will remain weak this year with 600 units
starting while 2010 will see an increase in activity.
Existing home sales will decline another 11 per cent in 2009 before
rebounding by approximately seven per cent in 2010. The price of an average
existing home is forecast to remain virtually unchanged at $230,000 in 2009
before increasing slightly in 2010 to approximately $235,000.

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 or call 1 800 668-2642.

For more information, visit or call 1-800-668-2642.

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Contact Information

  • For further information: Matthew Gilmore, Senior Market Analyst, Canada
    Mortgage and Housing Corporation, (902) 426-4686,