The housing market in the Halifax Regional Municipality moderated in the month of November as both new home starts and existing home sales declined compared to last year.  Price growth in the existing homes market remained stable while the average price of a new home in HRM dipped below last year's average price for the first time this year.

Overall housing starts were 34 per cent lower in November compared to November 2007 with 118 units breaking ground compared to 178 last year.  The decline was primarily due to fewer single-detached starts as only 96 single-detached units started last month compared to 125 last November, representing a decline of 23 per cent.  There were no rental or condo apartment unit starts last month, however, this compares to only 14 in November 2007.  Row housing starts, which have been strong all year, were down significantly with only 13 starts compared to 31 last year while semi-detached starts posted the only gains compared to last year with eight units starting compared to four last November.

Following a record year for existing homes sales in 2007, demand for housing remained elevated.  The spillover for demand from the existing homes market influenced the level of single starts in the first half of 2008.  At the end of May this year, single starts were up by more than 40 per cent, however, as demand tapered off, so did starts, which have now recorded declines in five of the past six months.  Regardless, year-to-date single starts remain higher than last year's levels by seven per cent.  While the number of unabsorbed unit is very low with only 28 unabsorbed units, a large number of units remain under construction in HRM.  As of November, there were 910 singles, semis and row units still under construction in HRM compared to 791 last year.

To view entire article go to www.cmhc.ca look for "Housing New-Halifax CMA-Date Released: December 2008".