Housing Starts Will Rebound in 2010



    HALIFAX, May 19 /CNW/ - According to Canada Mortgage and Housing
Corporation's (CMHC's) latest outlook, housing starts are forecast to decrease
in 2009 in Atlantic Canada but rise marginally in 2010. Both singles and
multiples will see a decline in activity in 2009, as overall economic growth
is impacted by the global slowdown.
    "The housing sector is expected to show positive growth in 2010, as
consumers continue to take advantage of the favorable interest rate
environment and a recovery begins to take hold, due in part to additional
fiscal and monetary stimulus," said Alex MacDonald, regional economist, with
CMHC's Atlantic Business Centre.
    Multiple starts are expected to decline in 2009, but row housing remains
popular in some urban centres across Atlantic Canada, as the current price of
housing continues to shift some consumers away from more costly
single-detached units. Higher prices will also continue to ease overall demand
for single starts in 2009.
    In 2009, existing home sales activity is expected to decrease across the
region. There is some downside risk to the forecast, if consumers remain
cautious and income growth is weaker than expected in 2009, but this is less
of a consideration at this point compared to six months ago.
    As a result, 2010 becomes a year for rebuilding momentum in the market
with sales expected to rise just under five per cent. This will result in
prices remaining slightly positive overall in Atlantic Canada in 2009 and
rising 2.5 per cent in 2010.
    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)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Housing Starts         2008        2009             2010
                                 Actual      Forecast         Forecast
                               ----------------------------------------------
    New Brunswick                4,274       3,475            3,650
        Forecast Ranges                      2,900-3,700      2,750-4,000
    Nova Scotia                  3,982       3,100            3,425
        Forecast Ranges                      2,750-4,100      3,000-4,400
    Prince Edward Island         712         575              625
        Forecast Ranges                      525-625          575-675
    Newfoundland and Labrador    3,261       2,675            2,975
        Forecast Ranges                      2,400-3,200      2,100-3,000
    Atlantic Region Total        12,229      9,825            10,675
    -------------------------------------------------------------------------
        Forecast Ranges                      8,575-11,625     8,425-12,075
    -------------------------------------------------------------------------

                     Atlantic Housing Market Outlook(1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total MLS(R) Sales(2)        2008        2009             2010
                                 Actual      Forecast         Forecast
                               ----------------------------------------------
    New Brunswick                7,555       6,500            6,750
        Forecast Ranges                      6,000-7,500      5,800-7,250
    Nova Scotia                  10,874      9,000            9,500
        Forecast Ranges                      8,500-9,500      9,000-10,000
    Prince Edward Island         1,413       1,300            1,325
        Forecast Ranges                      1,200-1,350      1,250-1,450
    Newfoundland and Labrador    4,695       4,000            4,200
        Forecast Ranges                      3,700-4,300      3,750-4,400
    Atlantic Region Total        24,538      20,800           21,775
    -------------------------------------------------------------------------
        Forecast Ranges                      19,400-22,650    19,800-23,100
    -------------------------------------------------------------------------

    

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2009. (1) The forecasts included in the Housing Market Outlook are based on information available as of April 30. 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) Price 2008 2009 2010 ($)(2) Actual Forecast Forecast ---------------------------------------------- New Brunswick $145,762 $146,500 $149,000 Forecast Ranges 143,000-152,000 146,000-155,000 Nova Scotia $189,902 $190,000 $195,000 Forecast Ranges 187,000-196,000 188,000-200,000 Prince Edward Island $139,944 $140,250 $141,500 Forecast Ranges 138,000-145,500 138,000-148,500 Newfoundland and Labrador $178,477 $192,500 $198,000 Forecast Ranges 185,000-195,000 192,000-205,000 Atlantic Region Total $171,247 $173,777 $178,064 ------------------------------------------------------------------------- Forecast Ranges 169,984-178,231 173,298-183,596 -------------------------------------------------------------------------

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Second Quarter 2009. (1) The forecasts included in the Housing Market Outlook are based on information available as of April 30. 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: 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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