Housing Activity Will Moderate in 2009, Improve in 2010



    OTTAWA, May 19 /CNW Telbec/ - Housing starts are expected to decline to
141,900 for 2009, but increase to 150,300 for 2010, according to Canada
Mortgage and Housing Corporation's (CMHC) second quarter Housing Market
Outlook, Canada Edition(*) report.
    "The decline in housing starts in 2009 can be attributed to several
factors, including the current economic climate, increased competition from
the existing home market, and the impact of strong house price growth between
2002 and 2007" said Bob Dugan, Chief Economist for CMHC. "However, housing
market activity will begin to strengthen in 2010 as the Canadian economy
recovers, bringing housing starts more in line with demographic fundamentals
over the forecast period".
    Existing home sales, as measured by the Multiple Listing Service
(MLS(R))(1), are expected to decline to 357,800 units in 2009 from 433,990 in
2008, but increase to 386,100 units in 2010. The average MLS(R) price is also
expected to decrease to $283,100 in 2009 and to stabilize in 2010.

    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.

    
    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 April 30, 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
      Forecast Ranges                      125,000-160,000   130,000-180,000

    Total single-detached
     houses                       93,202            62,400            68,000
      Forecast Ranges                        53,800-71,000     60,500-81,200

    Total multiple housing
     units                       117,854            79,500            82,300
      Forecast Ranges                        71,200-89,000     69,500-98,800

    Total MLS(R) sales(1)        433,990           357,800           386,100
      Forecast Ranges                      320,000-380,000   350,000-430,000

    Average MLS(R)
     selling price ($)           303,607           283,100           283,100
      Forecast Ranges                    $270,000-$295,000 $270,000-$300,000
    -------------------------------------------------------------------------


                         Provincial Housing Outlook

    Total Housing Starts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                    2008              2009 	         2010
                                  Actual         Forecasts         Forecasts
                        ----------------------------------------------------
    Newfoundland and Labrador      3,261             2,675             2,975
    Prince Edward Island             712               575               625
    Nova Scotia                    3,982             3,100             3,425
    New Brunswick                  4,274             3,475             3,650
    Quebec                        47,901            40,000            41,350
    Ontario                       75,076            51,325            52,300
    Manitoba                       5,537             3,950             4,250
    Saskatchewan                   6,828             3,400             3,850
    Alberta                       29,164            13,700            16,200
    British Columbia              34,321            19,725            21,700
    -------------------------------------------------------------------------
    

SOURCE: CMHC Housing Market Outlook, Canada Edition, Second 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: Kristen Scheel, CMHC Media Relations, (613)
748-2799, kscheel@cmhc-schl.gc.ca


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