Housing Demand in Halifax to Remain Soft in 2011

HALIFAX, NOVA SCOTIA--(Marketwire - May 30, 2011) - Residential construction will see modest growth in 2011 before declining in 2012, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook – Halifax report released today. MLS^® sales are expected to see little movement in both 2011 and 2012 while prices are expected to continue to advance.

"Slow economic and employment growth along with slower migration and only modest growth in population will result in continued weakness in housing demand for Halifax over the forecast period," said Matthew Gilmore senior market analyst with CMHC's Atlantic Business Centre. "Single-detached housing starts are forecast to decline by 13 per cent but will be offset by a 15 per cent increase in apartment construction in 2011," added Gilmore.

"MLS^® sales are expected to remain substantially unchanged in both 2011 and 2012 as demand continues to be soft," said Gilmore. Average prices are expected to increase by two to three per cent in 2011 and 2012.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high 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 informed decisions.

MLS^® is a registered trademark of the Canadian Real Estate Association.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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