Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

February 19, 2009 23:59 ET

Housing will continue to moderate in 2009

OTTAWA, Feb. 19 - Housing starts reached 211,056 units in
2008, a decrease from 228,343 in 2007, according to Canada Mortgage and
Housing Corporation's (CMHC) first quarter Housing Market Outlook, Canada
Edition(*) report. Starts are expected to be about 160,250 for 2009 and about
163,350 for 2010.

"The new home market is moderating due to a number of key factors," said
Bob Dugan, Chief Economist for CMHC. "The economic downturn will result in a
decrease in demand for home ownership leading to a decline in housing starts
and existing home sales in 2009. Housing market activity will begin to
strengthen as the Canadian economy rebounds in 2010 and the level of housing
starts over the forecast period will be more in line with demographic
fundamentals. "

Existing home sales, as measured by the Multiple Listing Service
(MLS®)(1), are expected to decline 14.6 per cent during 2009 to 370,500
units. In 2010 the level of MLS® sales is expected to increase by 9.3 per
cent to 405,000 units. The average MLS® price is also expected to decrease
over the course of 2009. Average prices are forecast to be $287,900 for 2009,
a decline of 5.2 per cent, while 2010 will see little change from 2009 average
prices.


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.



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

(*) The forecasts included in the Housing Market Outlook are based on
information available as of January 27. 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
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Total housing starts
(units) 211,056 160,250 163,350
Forecast Ranges 141,000-180,000 143,000-180,000

Total single-detached
houses 93,202 74,825 76,600
Forecast Ranges 65,800-83,800 68,600-84,600

Total multiple housing
units 117,854 85,425 86,750
Forecast Ranges 75,200-96,200 74,400-95,400

Total MLS® sales(1) 433,990 370,500 405,000
Forecast Ranges 344,000-395,000 360,000-420,000

Average MLS® selling
price ($) 303,607 287,900 288,100
Forecast Ranges $270,000-$305,000 $270,000-$310,000
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Provincial Housing Outlook

Total Housing Starts
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2008 2009 2010
Actual Forecasts Forecasts
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Newfoundland and Labrador 3,261 2,675 2,775
Prince Edward Island 712 575 625
Nova Scotia 3,982 3,675 3,900
New Brunswick 4,274 3,475 3,650
Quebec 47,901 40,700 40,500
Ontario 75,076 58,255 59,700
Manitoba 5,537 4,748 5,000
Saskatchewan 6,828 4,141 4,500
Alberta 29,164 19,200 22,000
British Columbia 34,321 22,800 20,700
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SOURCE: CMHC Housing Market Outlook, Canada Edition, First Quarter 2009.

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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. All 2007 MLS® figures are estimated as at the
time of the forecast. Final figures have since been released by the
Canadian Real Estate Association.

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