New home construction levels increased in the Halifax CMA last month compared to last year due to an increase in rental starts.

Overall starts increased by 86 percent last month and were bolstered by a sharp rise in multiple starts, which increased from 23 in August 2008 to 146 last month.  Rental apartment units accounted for 130 of these starts compared to none last year.  Row units accounted for the remaining 16 in the month compared to only six last year.  With 83 units, single-detached starts saw the lowest monthly decrease of the year at 17 percent.

The start of some new apartments and the slower rate of decline in single starts are reflective of near record employment and wage levels in Metro Halifax.  On a year-to-date basis, overall starts remain 29 per cent lower than last year, however, not all segments of the market are experiencing declines.  As a result of the strong month of August, rental apartment starts are 5.7 per cent higher than last year while the 84 semi-detached starts this year are 16.7 per cent higher than last year.  While declines in single-detached starts have become less pronounced in recent months, single starts remain 34 percent off last year's pace.

The average price of the 608 new homes sold between January and August was $336,018, representing a slight decline of 2.3 percent over the same time period last year.  In August, the average price of the 66 new homes sold was $348,670, representing a 2.6 percent increase from August 2008. A change in the distribution of new home sales in Halifax CMA has resulted in a lower overall average price, however, average prices have increased in all submarkets with the exception of Halifax City.  New home prices have increased the most in Halifax County East after eight months of year, rising 23 percent to $231,605 from $188,147 last year.

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