Outlook Improves



    HALIFAX, Oct. 30 /CNW/ - Housing starts are now expected to show a very
similar picture in 2007 as in 2006 as a result of an increase in single starts
activity in the third quarter of 2007. This trend will also result in more
starts activity in 2008 across Atlantic Canada.
    "Labour market conditions remain tight and although the price of existing
homes continued to close the gap with new homes, buyers can still find a good
selection in the existing market," said Alex MacDonald, Regional Economist,
with CMHC's Atlantic Business Centre. "This will result in a small decline in
single starts in 2008 but this should also provide more room for growth in the
higher density semi-detached and townhouse segments of the market," added
MacDonald.
    Sales activity was much stronger in 2007 than was anticipated as a result
of a much smaller increase in the supply of listings, an improving picture for
migration, rising incomes and an improving level of consumer confidence in
2007.
    Supportive economic conditions including stable consumer confidence and
gains in household income will now be supported by the addition of an
improving picture for net migration and employment. Although challenges have
continued to emerge in the manufacturing sector as exporters struggle to
adjust to the stronger Canadian dollar and competitive global markets,
economic growth for the four provincial economies will be supported by
increased capital investment, especially from the energy sector.

    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
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Housing Starts                    2006          2007          2008
                                          Actual      Forecast      Forecast
                                     ----------------------------------------
    New Brunswick                          4,085         4,025         3,725
      Saint John CMA                         565           650           620
      Moncton CMA                          1,416         1,385         1,285
      Fredericton CA                         710           600           615
    Nova Scotia                            4,896         4,700         4,525
      Halifax CMA                          2,511         2,525         2,550
    Prince Edward Island                     738           680           630
      Charlottetown CA                       467           365           350
    Newfoundland and Labrador              2,234         2,325         2,250
      St John's CMA                        1,275         1,375         1,350
    Atlantic Region Total                 11,953        11,730        11,130
    -------------------------------------------------------------------------

                       Atlantic Housing Market Outlook
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total MLS(R) Sales(1)                   2006          2007          2008
                                          Actual      Forecast      Forecast
                                     ----------------------------------------
    New Brunswick                          7,125         7,975         7,625
      Saint John CMA                       1,852         2,200         2,100
      Moncton CMA                          2,561         2,750         2,600
      Fredericton CA                       2,120         2,400         2,275
    Nova Scotia                           10,577        11,525        10,900
      Halifax CMA                          6,228         6,850         6,500
    Prince Edward Island                   1,492         1,635         1,550
      Charlottetown CA                       486           550           500
    Newfoundland and Labrador              3,537         4,025         3,950
      St John's CMA                        3,537         4,025         3,950
    Atlantic Region Total                 22,731        25,160        24,025
    -------------------------------------------------------------------------

    

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Fourth Quarter 2007. (1) 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 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average MLS(R) Price ($)(1) 2006 2007 2008 Actual Forecast Forecast ---------------------------------------- New Brunswick $126,864 $136,500 $141,500 Saint John CMA $128,202 $142,500 $149,000 Moncton CMA $128,547 $141,000 $147,500 Fredericton CA $138,094 $144,000 $149,500 Nova Scotia $169,237 $182,000 $188,000 Halifax CMA $201,734 $215,000 $223,000 Prince Edward Island $125,430 $132,500 $137,500 Charlottetown CA $144,036 $160,000 $167,500 Newfoundland and Labrador $139,542 $148,000 $157,500 St John's CMA $139,542 $148,000 $157,500 Atlantic Region Total $148,459 $158,922 $164,969 -------------------------------------------------------------------------

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Fourth Quarter 2007. (1) 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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