HALIFAX, Sept. 3 /CNW/ - According to Canada Mortgage and Housing
Corporation's (CMHC's) latest outlook, housing starts are forecast to decline
in 2009 in Atlantic Canada, but rise marginally in 2010. Both singles and
multiples will see a decline in activity in 2009, as economic growth continues
to be impacted by the global slowdown.
"A gradual recovery in Atlantic Canada is expected in 2010. The housing
sector is expected to show positive growth of over five per cent in 2010, as
consumers continue to take advantage of the favorable interest rate
environment and additional fiscal and monetary stimulus continues to support
economic growth," said Alex MacDonald, regional economist, with CMHC's
Atlantic Business Centre.
With inventory levels down in the first half of 2009, the growth in
prices in the existing market continued, with prices up over five per cent so
far in 2009. It is expected that the growth in prices will remain near current
levels for the remainder of 2009, rising a further three per cent in 2010.
Favourable market conditions in the second quarter, along with low
mortgage rates, have allowed potential homeowners, particularly first time
home buyers, to enter the market. As a result, the 2009 forecast is a little
less negative than previously forecast, with sales expected to decline over 12
per cent. Momentum in the market begins to rebuild in 2010, as sales are
expected to rise close to three per cent.
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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2008 2009 2010
Total Housing Starts Actual Forecast Forecast
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New Brunswick 4,274 3,285 3,500
Forecast Ranges 3,000-3,650 2,950-4,000
Nova Scotia 3,982 3,050 3,325
Forecast Ranges 2,875-3,600 3,050-4,000
Prince Edward Island 712 625 640
Forecast Ranges 550-675 550-700
Newfoundland and Labrador 3,261 2,950 3,000
Forecast Ranges 2,575-3,275 2,600-3,450
Atlantic Region Total 12,229 9,910 10,465
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Forecast Ranges 9,000-11,200 9,150-12,150
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Atlantic Housing Market Outlook(1)
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2008 2009 2010
Total MLS(R) Sales(2) Actual Forecast Forecast
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New Brunswick 7,555 6,650 6,900
Forecast Ranges 6,000-7,000 6,400-7,350
Nova Scotia 10,874 9,275 9,500
Forecast Ranges 9,000-9,800 9,000-10,500
Prince Edward Island 1,413 1,350 1,400
Forecast Ranges 1,250-1,450 1,300-1,500
Newfoundland and Labrador 4,695 4,100 4,200
Forecast Ranges 3,750-4,250 3,800-4,400
Atlantic Region Total 24,538 21,375 22,000
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Forecast Ranges 20,000-22,500 20,500-23,750
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SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Third Quarter
2009.
(1) The forecasts included in the Housing Market Outlook are based on
information available as of July 23. Where applicable, forecast
ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS(R) 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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2008 2009 2010
Average MLS(R) Price ($)(2) Actual Forecast Forecast
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New Brunswick $145,762 $150,100 $155,600
Forecast Ranges 148,000-152,500 152,000-157,500
Nova Scotia $189,902 $194,500 $199,250
Forecast Ranges 190,000-197,000 195,000-203,000
Prince Edward Island $139,944 $146,500 $151,000
Forecast Ranges 143,000-148,000 148,000-153,000
Newfoundland and Labrador $178,477 $205,000 $213,000
Forecast Ranges 200,000-208,000 207,500-216,000
Atlantic Region Total $171,247 $179,670 $185,114
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Forecast Ranges 176,342-182,076 180,912-188,169
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SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Third Quarter
2009.
(1) The forecasts included in the Housing Market Outlook are based on
information available as of July 23. Where applicable, forecast
ranges are also presented in order to reflect economic uncertainty.
(2) The term MLS(R) stands for Multiple Listing Service and is a
registered trademark of the Canadian Real Estate Association (CREA).
For further information: Matthew Gilmore, Senior Market Analyst, CMHC,
(902) 426-4686, mgilmore@cmhc-schl.gc.ca; The Housing Market Outlook, Atlantic
Region Highlights report is available on the CMHC Web site:
http://www.cmhc-schl.gc.ca
