Housing starts will slow in Atlantic Canada



    HALIFAX, Aug. 15 /CNW/ - Housing starts are expected to continue their
slow descent in 2007-2008. Across Atlantic Canada total starts are expected to
decline eight per cent in 2007 and a further three per cent in 2008.
    Tightening labour market conditions and a rising price gap between new
and existing homes will continue to force buyers to shift from the new to the
existing market. This will result in a decline in single starts in 2007-2008
but should provide some room for growth in the higher density semi-detached
and townhouse segments of the market.
    Although the slowdown in singles was expected to have some impact on the
pace of sales in 2007, the pace of growth is not expected to slow until 2008
as the widening gap in price between new and existing homes will favour the
existing market overall compared to new construction.
    Supportive economic conditions including stable consumer confidence and
gains in household income will be offset by a continuation of negative net
migration and rising mortgage rates. Economic growth for the four provincial
economies has previously been supported by increased capital investment,
growth in retail sales and housing-related spending activity. However,
challenges have continued to emerge in the manufacturing sector as exporters
struggle to adjust to the stronger Canadian dollar and competitive global
markets.

    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              3,750             3,625
      Saint John CMA                565                625               550
      Moncton CMA                 1,416              1,240             1,150
      Fredericton CA                710                535               565
    Nova Scotia                   4,896              4,475             4,300
      Halifax CMA                 2,511              2,400             2,300
    Prince Edward Island            738                625               590
      Charlottetown CA              467                365               350
    Newfoundland and Labrador     2,234              2,100             2,025
      St John's CMA               1,275              1,300             1,300
    Atlantic Region Total        11,953             10,950            10,540
    -------------------------------------------------------------------------


                       Atlantic Housing Market Outlook
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total MLS(R) Sales(1)          2006               2007              2008
                                 Actual           Forecast          Forecast
                                ---------------------------------------------
    New Brunswick                 7,125              7,450             6,875
      Saint John CMA              1,852              1,950             1,875
      Moncton CMA                 2,561              2,650             2,500
      Fredericton CA              2,120              2,300             2,175
    Nova Scotia                  10,577             11,025            10,375
      Halifax CMA                 6,228              6,700             6,100
    Prince Edward Island          1,492              1,510             1,400
      Charlottetown CA              486                500               450
    Newfoundland and Labrador     3,537              3,650             3,350
      St John's CMA               3,537              3,600             3,300
    Atlantic Region Total        22,731             23,635            22,000
    -------------------------------------------------------------------------

    

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Third 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 $134,975 $139,750 Saint John CMA $128,202 $138,500 $142,500 Moncton CMA $128,547 $138,000 $142,750 Fredericton CA $138,094 $145,000 $149,500 Nova Scotia $169,237 $178,475 $184,500 Halifax CMA $201,734 $213,000 $220,000 Prince Edward Island $125,430 $129,175 $132,500 Charlottetown CA $144,036 $155,000 $158,000 Newfoundland and Labrador $139,542 $140,500 $142,250 St John's CMA $139,542 $141,000 $143,000 Atlantic Region Total $148,459 $155,749 $160,773 -------------------------------------------------------------------------

SOURCE: CMHC Housing Market Outlook, Atlantic Highlights, Third 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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