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



    OTTAWA, Sept. 3 /CNW Telbec/ - 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:
http://www.cmhc-schl.gc.ca

    
    (*) 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.

For further information:

For further information: Information on this release: Charles Sauriol,
CMHC Media Relations, (613) 748-2799, csauriol@cmhc-schl.gc.ca


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