Housing Market Resilient in 2007

    MONCTON, NB, Nov. 6 /CNW/ - The residential housing market has remained
strong in historical terms in New Brunswick through the first three quarters
of 2007.
    "Favorable market conditions, combined with stable demand due to positive
in-migration, have allowed housing starts to maintain a pace similar to last
year through the first three quarters of 2007," said Claude Gautreau, CMHC's
Senior Market Analyst for New Brunswick.
    In 2007, gains in the provincial energy sector are being partially offset
by a weakening manufacturing sector, due in part to the strong value of the
Canadian dollar. Furthermore, economic challenges in the United States -
New Brunswick's largest trading partner - could lead to reduced consumer
spending south of the border, amplifying the current challenges faced by New
Brunswick's exporters. "With tightening economic conditions expected in 2008,
residential housing starts will likely decline from the 2007 levels in most of
the province's urban areas," continued Gautreau.
    Total starts for 2007 are expected to remain comparable to last year's
level, with a small overall decline to 4,025 units, followed by a subsequent
drop to 3,725 units for 2008. In the province's three large urban areas, new
home construction is expected to be similar to last year's level despite
rising costs, which are pushing a growing number of people to the resale
    In the resale market, existing homes sales in 2007 are expected to exceed
last year's totals in New Brunswick's three large urban centres, to be
followed by a slight decline in 2008. In addition, the price of existing homes
will also rise in both 2007 and 2008, despite the anticipated decline in sales
next year.

For further information:

For further information: Claude Gautreau, Senior Market Analyst, Canada
Mortgage and Housing Corporation, (506) 851-2742, Fax : (506) 851-6188

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