Housing starts turn positive in 2010

HALIFAX, March 2 /CNW/ - According to Canada Mortgage and Housing Corporation's (CMHC's) latest outlook, housing starts will turn positive in Atlantic Canada in 2010. Both singles and multiples will see a recovery in terms of growth as the economy in Atlantic Canada begins to rebound.

"Positive growth is expected in 2010. An improving outlook for private sector investment will provide support for better economic growth and increased housing activity in 2010," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

Low vacancy rates and demographic trends related to an aging population will also help contribute to a rebound in multiple starts 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.

    
                     Atlantic Housing Market Outlook (1)

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    Total Housing Starts            2009              2010              2011
                                  Actual          Forecast          Forecast
                               ----------------------------------------------
    New Brunswick                  3,521             3,590             3,640
      Forecast Ranges                          3,250-3,850       3,275-3,975
    Nova Scotia                    3,438             3,690             3,810
      Forecast Ranges                          3,275-3,975       3,375-4,125
    Prince Edward Island             877               645               645
      Forecast Ranges                              575-700           625-725
    Newfoundland and Labrador      3,057             3,075             3,120
      Forecast Ranges                          2,900-3,275       2,725-3,375
    Atlantic Region Total         10,893            11,000            11,215
    -------------------------------------------------------------------------
      Forecast Ranges                        10,000-11,800     10,000-12,200
    -------------------------------------------------------------------------

                     Atlantic Housing Market Outlook (1)

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    Total MLS(R) Sales(2)           2009              2010              2011
                                Estimate          Forecast          Forecast
                               ----------------------------------------------
    New Brunswick                  7,003             7,175             7,350
      Forecast Ranges                          6,500-7,600       6,500-7,650
    Nova Scotia                   10,021            10,200            10,400
      Forecast Ranges                         9,250-10,750      9,350-10,850
    Prince Edward Island           1,404             1,425             1,450
      Forecast Ranges                          1,350-1,575       1,350-1,575
    Newfoundland and Labrador      4,416             4,500             4,550
      Forecast Ranges                          4,000-4,750       4,000-4,750
    Atlantic Region Total         22,844            23,300            23,750
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      Forecast Ranges                        21,100-24,675     21,200-24,825
    -------------------------------------------------------------------------

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

    (1) The forecasts included in the Housing Market Outlook are based on
        information available as of February 16th 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).
        (1)

                     Atlantic Housing Market Outlook(1)

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    Average MLS(R) Price ($)(2)     2009              2010             2011
                                Estimate          Forecast         Forecast
                               ----------------------------------------------
    New Brunswick               $154,906          $159,000          $163,000
      Forecast Ranges                      157,500-166,000   160,000-168,000
    Nova Scotia                 $196,690          $201,000          $205,000
      Forecast Ranges                      198,000-210,000   201,000-212,500
    Prince Edward Island        $146,044          $150,000          $153,500
      Forecast Ranges                      148,000-157,500   150,000-160,000
    Newfoundland and Labrador   $206,374          $225,000          $235,000
      Forecast Ranges                      220,000-230,000   230,000-240,000
    Atlantic Region Total       $182,639          $189,583          $194,605
    -------------------------------------------------------------------------
      Forecast Ranges                    $186,495-$196,947 $190,653-$200,718
    -------------------------------------------------------------------------

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

    (1) The forecasts included in the Housing Market Outlook are based on
        information available as of February 16th. 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).
        (1)
    


For further information: For further information: 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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