The slowing trend in the Halifax Regional Municipality (HRM) housing market which ended the year in 2008, continued into January as both new home starts and existing home sales declined last month compared to January last year.  Average MLS® prices continued to rise steadily while a shift in consumer preferences was reflected in a decline in the average new home price compared to last year.

There were 57 total housing starts last month compared to 78 in January 2008, representing a 27 per cent year-over-year decline.  Single starts decreased by 25 per cent as 42 units started in January compared to 56 last year.  There were two semi-detached starts adn 13 row unit starts last month compared to eight and 14 respectively in January 2008.  There were no apartment unit starts in January of either year.

The inventory of units under construction decreased last month as there were 159 completions reported (139 single-detached adn 20 semi-detached units).  There were 1,868 units still under construction in HRM, however that figure was down 24 per cent compared to last January.  While there were 159 completions last month there were also 156 new units absorbed last month leaveing the remaining inventory of completed and unabsorbed units at 219, which is considerably lower than the 498 unabsorbed units reported in January 2008.

Out of the 138 single-detached units that were absorbed last month, more than half were priced under $250,000.  An additional 29 units were priced between $250,000 and $299,999 reflecting a shift from last January where 67 per cent of absorbed singled-detached homes were priced above $300,000.  This has had an impact on the average price of a new home brining it down to $276,632 compared to $366,351 last year.  The median price in January was $249,900 compared to $345,000 last year.  Demand for new homes priced under $300,000 or even under $250,000 increased in the latter half of 2008 in HRM and more specifically in Dartmouth City and Halifax County East, where most of these new homes have been located.

To read entire article go to www.chmc.ca look for "Housing Now-Halifax CMA-Date Released: February 2009".