Housing Starts Rebound in 2010

HALIFAX , Nov. 2 /CNW/ - According to Canada Mortgage and Housing Corporation's (CMHC's) latest outlook housing starts will rise moderately in Atlantic Canada in 2010 following an expected decline in 2009. Both singles and multiples will decline this year as economic growth continues to be affected by the global slowdown.

"A gradual recovery is expected in 2010. The housing sector in Atlantic Canada is forecast to show positive growth of over four per cent next year. A favourable interest rate environment for consumers and additional fiscal and monetary stimulus, will provide support for positive economic growth and housing activity in 2010," said Alex MacDonald, regional economist, with CMHC's Atlantic Business Centre.

Low vacancy rates will support an increase in multiples activity, as builders begin to refocus their efforts in 2010. Demographic trends related to an aging population and improving financial conditions will also help support a rebound in the year ahead.

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.

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                     Atlantic Housing Market Outlook(1)

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    Total Housing Starts                    2008          2009          2010
                                          Actual      Forecast      Forecast
                                    -----------------------------------------
      New Brunswick                        4,274         3,400         3,525
        Forecast Ranges                            3,250-3,525   3,225-3,850
      Nova Scotia                          3,982         3,275         3,500
        Forecast Ranges                            3,150-3,400   3,175-3,825
      Prince Edward Island                   712           740           725
        Forecast Ranges                                675-800       650-800
      Newfoundland and Labrador            3,261         2,900         3,000
        Forecast Ranges                            2,775-3,025   2,725-3,225
      Atlantic Region Total               12,229        10,315        10,750
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        Forecast Ranges                          9,850 -10,750  9,775-11,700
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                     Atlantic Housing Market Outlook(1)

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    Total MLS(R) Sales(2)                   2008          2009          2010
                                          Actual      Forecast      Forecast
                                    -----------------------------------------
      New Brunswick                        7,555         6,650         6,900
        Forecast Ranges                            6,500-6,900   6,350-7,450
      Nova Scotia                         10,874         9,500        10,000
        Forecast Ranges                            9,300-9,750  9,250-10,850
      Prince Edward Island                 1,413         1,400         1,475
        Forecast Ranges                            1,350-1,450   1,350-1,575
      Newfoundland and Labrador            4,695         4,100         4,200
        Forecast Ranges                            3,950-4,250   3,750-4,450
      Atlantic Region Total               24,538        21,650        22,575
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        Forecast Ranges                          21,100-22,350 20,700-24,325
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                     Atlantic Housing Market Outlook(1)

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    Average MLS(R) Price ($)(2)             2008          2009          2010
                                          Actual      Forecast      Forecast
                                    -----------------------------------------
      New Brunswick                     $145,762      $150,100      $155,600
                                                       148,500-      151,500-
        Forecast Ranges                                152,000       163,500
      Nova Scotia                       $189,902      $195,000      $200,000
                                                       192,500-      195,000-
        Forecast Ranges                                197,500       210,000
      Prince Edward Island              $139,944      $146,000      $150,000
                                                       144,000-      146,250-
        Forecast Ranges                                148,500       157,500
      Newfoundland and Labrador         $178,477      $204,000      $212,000
                                                       200,000-      206,500-
        Forecast Ranges                                208,000       225,000
      Atlantic Region Total             $171,247      $179,743      $185,395
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                                                       177,251-      180,560-
        Forecast Ranges                                182,271       195,103
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    SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Fourth Quarter
    2009.

    (1) The outlook is subject to uncertainty. Although point forecasts are
        presented in this publication, CMHC also presents forecast ranges and
        risks where appropriate. The forecasts included in this document are
        based on information available as of October 1, 2009.
    (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: Alex P. MacDonald, Regional Economist, CMHC, [phone], [email protected]; The Housing Market Outlook, Atlantic Region Highlights report is available on the CMHC Web site: http://www.cmhc-schl.gc.ca