The slower pace of the housing industry in the Halifax Regional Municipality (HRM) that began last year continued into April as existing home sales and new home construction posted year-over-year declines compared to April of last year.  While overall activity in the housing industry has slowed, average price growth in the existing homes market remains positive for the year.

After four months of the year, the well-diversified economy in the HRM has been somewhat resilient to overall economic conditions as year-to-date employment levels in the region remain three per cent higher than last year.  Despite this and the fact that interest rates are at historical lows, consumers continue to take a cautious approach to major expenditures, including housing.

There were 84 new home starts last month compared to 182 last year representing a 54 per cent decline in activity.  On a year-to-date basis, overall starts have declined by 41 per cent in the January to April time frame with 358 starts compared to 605 at this point in time last year.  New home starts in April were supported by 66 single-detached and 18 semi-detached starts, however, there were no rental or condo starts recorded last month.  The 66 single starts were 40 per cent lower than last year's 109 starts for April and the year-to-date total of 170 single starts is 46 per cent lower than the 312 recorded through April of 2008.

Through four months of the year, there have yet to be any apartment style condo units started in the HRM and only 90 rental apartment units starts compared to 65 and 124 last year respectively.  This represents a decline of 52 per cent in this segment of the market.

There have been 329 new home sales this year with an average price of $327,724 compared to 313 sales last year with an average price of $341,581, representing a decline in average price of four per cent.  The overall decline in average price for a new home in HRM points to the mix of new home sales at the various price points.  The average price of a new home has actually risen on a year-to-date basis in all submarkets wiht the exception of Halifax County Southwest where the average price is essentially flat compared to last year.  The overall average is being impacted by the changing distribution of sales by submarket.

To view entire article please visit: www.chmc.ca look for "Housing Now-Halifax CMA-Date Released: May 2009".