Residential construction has had a slow start in 2008 compared to last year, primarily due to a lack of rental and condo starts in the month of January. The winter weather likely played a role in the January starts figures as Metro has seen above average snowfall and cold temperatures throughout most of the winter thus far, and January was no different. MLS® sales in Halifax cooled as well in the month of January compared to last year.

Last month, there were 78 total starts compared to 260 in January 2007 – a decline of 70 per cent. January posted the second lowest number of monthly starts in ten years, well below the ten year average of 162. Single-detached starts were down 21 per cent with 56 compared to 71 last year and there were no rental starts in January compared to 158 last year. There were eight semis and 14 row units started in January compared to two and 29 in January 2007 respectively. Although starts were down last month, the level of units under construction in Metro as of the end of January 2008 was six per cent higher than in January 2007. As of January 2008, there were 2,472 units under construction compared to 2,327 last year.

The average price for new homes continues to rise in Metro. In January, 61 new single-detached homes sold for an average of $366,351. This represents a 21 per cent increase over the average price in January 2007. The median price was $345,000 in 2008 compared to $290,400 in January 2007.

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