Sustained Levels of Residential Construction Expected Through 2008

    HALIFAX, Nov. 2 /CNW/ - Residential construction activity is expected to
maintain its current course through the end of next year. According to Canada
Mortgage and Housing Corporation's (CMHC) Housing Market Outlook - Halifax
report released today, single-detached housing starts will continue to slow
modestly while multi-residential development will continue to increase
modestly. "The combined effect of the forecast for singles and multiples will
be a sustained level of overall housing starts in Metro over the next year and
a half," said Matthew Gilmore, Senior Market Analyst with CMHC's Atlantic
Business Centre.
    "New single-detached construction continues to be challenged with rising
prices and a very competitive existing home market," added Gilmore. "Not only
are there price pressures from rising costs, new home buyers are expressing a
preference for more modern designs and higher quality finishings. The demand
for these more expensive homes will continue to support the current price
levels in the near term," Gilmore said.
    "Generally strong economic conditions and current demographic trends
continue to be supportive of household formation and housing demand," Gilmore
said. "Multiples remain an attractive alternative to singles for both builders
and residents alike. Builders benefit from some economies of scale, while
residents benefit from the same economies of scale and also may prefer the
usually more central locations of multiples for various lifestyle choices,"
added Gilmore.

    Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for over 60 years. CMHC contributes to improving the living
conditions and the well-being of Canadians through four areas of housing
activities - housing finance, assisted housing, research and information
transfer, and export promotion. CMHC is committed to helping Canadians access
a wide choice of quality, affordable homes, and making vibrant and sustainable
communities and cities a reality across the country. For more information,
visit or call 1 800 668-2642.

    (Ce document existe également en français.)

For further information:

For further information: Matthew Gilmore, Senior Market Analyst - Nova
Scotia, Canada Mortgage and Housing Corporation, (902) 426-4686; For more
information, visit or call 1-800-668-2642

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