The brisk pace of single-detached construction and the sluggish pace of multiples constrcution continued in the month of May in Metro Halifax while existing home sales posted another strong month of activity.

Total housing starts fell by almost 33 per cent in the month of May compared to last year due to another slow month of multiples construction.  There were only 51 multiples starts last month compared to 161 in May 2007 - a decline of 68 per cent.  The lack of construction occurred in the rental segment as there was actually an increase in semi and row starts with 37 compared to 22 last year.

In the single-detached segment of the market, the high level of starts activity seen thus far in 2008 continued in the month of May with 115 new singles breaking ground compared to 87 last year.  This represents an increase of 34 per cent and on a year-to-date basis, single-detached starts are up by 42 per cent.  One reason for the increase in single-detached starts can be related to consumers demanding increased energy efficiency in their homes in an attempt to cut back on energy costs.  Newer homes are typically more energy efficient than older homes and builders are meeting this demand.

Besides single-detached, row housing units is the only other segment of the market to have an increase in year-over-year starts through the January to May timeframe.  Rental apartments, condominium style apartments and semi-detached starts are all down on a year-to-date basis by 53, 33 and 36 per cent respectively.

Price growth in the new homes market slowed a little as the average price of the 380 new homes sold between January and May was $345,583, which is an eight per cent increase over last year.  Since 2000, year-over-year price growth for the Janary to May period has averaged 12 per cent.  The median price for a new home sold through May also increased by eight per cent to $319,450.

To view entire article go to www.chmc.ca order desk.  "Housing Now-Halifax CMA-Date Released: June 2008".