Housing starts show positive growth in 2010

HALIFAX, May 19 /CNW/ - According to Canada Mortgage and Housing Corporation's (CMHC's) latest outlook, housing starts will edge higher in Atlantic Canada in 2010. The expectation for 2010 is that consumers will be more willing to spend, as a result of historic low interest rates, rising income levels and moderate employment growth.

"Single starts will see a moderate recovery in 2010 and 2011 as the economy in Atlantic Canada continues to rebound. Low vacancy rates and demographic trends related to an aging population will contribute to stability for multiple starts which will remain flat in 2010 and rise moderately in 2011," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

With moderate declines in inventory in 2009, it is expected that the growth in prices will remain positive in 2010. The range in price growth will vary across Atlantic Canada from a high of approximately thirteen per cent in Newfoundland-Labrador to nearly three per cent in New Brunswick and Prince Edward Island.

In 2010, existing home sales are expected to rise modestly across the region. Sales growth will vary across Atlantic Canada at nearly three per cent in Nova Scotia and New Brunswick, two per cent for Newfoundland-Labrador and no significant change in Prince Edward Island.

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.

    
                       Atlantic Housing Market Outlook(1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Housing Starts         2009           2010               2011
                                Actual        Forecast           Forecast
                              -----------------------------------------------
    New Brunswick               3,522           3,590              3,640
      Forecast Ranges                       3,150-3,850        3,000-4,225
    Nova Scotia                 3,438           3,760              3,850
      Forecast Ranges                       3,275-4,075        3,150-4,475
    Prince Edward Island         877             650                680
      Forecast Ranges                          575-700           550-750
    Newfoundland and Labrador   3,057           3,075              3,120
      Forecast Ranges                       2,875-3,275        2,525-3,650
    Atlantic Region Total      10,894          11,075             11,290
    -------------------------------------------------------------------------
      Forecast Ranges                      9,875-11,900       9,225-13,100
    -------------------------------------------------------------------------


                       Atlantic Housing Market Outlook(1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total MLS(R) Sales(2)        2009           2010               2011
                               Estimate       Forecast           Forecast
                              -----------------------------------------------
    New Brunswick               7,000           7,175              7,350
      Forecast Ranges                       6,850-7,475        7,100-7,850
    Nova Scotia                 9,925          10,300             10,400
      Forecast Ranges                       9,350-10,750       9,450-11,100
    Prince Edward Island        1,415           1,400              1,300
      Forecast Ranges                       1,350-1,575        1,200-1,575
    Newfoundland and Labrador   4,416           4,500              4,550
      Forecast Ranges                       4,000-4,750        4,000-4,850
    Atlantic Region Total      22,756          23,375             23,600
    -------------------------------------------------------------------------
      Forecast Ranges                      21,550-24,550     21,750-25,375
    -------------------------------------------------------------------------

    SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter
            2010.

    (1) The forecasts included in the Housing Market Outlook are based on
        information available as of April 23 2010. 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)
    -------------------------------------------------------------------------
    Average MLS(R)               2009           2010               2011
     Price ($)(2)              Estimate       Forecast           Forecast
                              -----------------------------------------------
    New Brunswick             $155,100        $159,000           $162,500
      Forecast Ranges                      155,000-164,500   154,900-168,200
    Nova Scotia               $196,300        $205,000           $209,275
      Forecast Ranges                      198,000-210,000   199,400-216,600
    Prince Edward Island      $147,000        $150,000           $153,500
      Forecast Ranges                      147,500-155,000   146,300-160,000
    Newfoundland and Labrador $206,375        $233,125           $241,500
      Forecast Ranges                      227,500-237,500   230,150-249,900
    Atlantic Region Total     $182,515        $193,001           $197,848
    -------------------------------------------------------------------------
      Forecast Ranges                    $186,644-$197,938  $187,599-$204,479
    -------------------------------------------------------------------------

    SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter
            2010. Add Forecast: CMHC

    (1) The forecasts included in the Housing Market Outlook are based on
        information available as of April 23 2010. 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: For further information: on this release: Alex P. MacDonald, Regional Economist, CMHC, (902) 426-8964, amacdona@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


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