As expected, the downward trend in the housing market in the Halifax Regional Municipality (HRM) which highlighted the fourth quarter of 2008, continued into the first quarter of 2009.  Practically all segments of the market experienced declines compared to a year ago.  Single-detached starts declined as did MLS® sales, however, average price growth in the existing homes market remains positive for the year.

There were 274 overall starts in the first quarter of 2009 compared to 423 a year ago, marking a 35 per cent decline. Single-detached starts declined by 49 per cent with 104 new units after three months of the year compared to 203 in 2008.  There were 90 apartment-style rental unit starts compared to 124 last year and no apartment-style condo starts were recorded as of March of this year compared to 38 in 2008.

The only two segments of the  market to see a year-over-year increase in starts were in the semi-detached and row units segments.  Through three months, there have been 73 semi and row units starts compared to 46 last year, representing a 55 per cent increase in activity.  As the number of starts increase, so does the number of semi and row units under construction in Metro.  As of March, there were 246 semi and row units under construction compared to 184 at this point in time last year, however, the inventory of completed and unabsorbed units remains low with six units currently completed and unoccupied compared to 17 last year.

The number of units under construction declined in all submarkets of HRM last month with the exception of Dartmouth City, which increased from 583 last year to 710 this year.  There remains 849 units under construction in Halifax City which is primarily apartment-style rental and condo units, which account for 740 of the 849 units.

While there were fewer units under construction in HRM last month, the inventory of completed and unabsorbed units increased to 233 in March compared to 51 at the same point in time last year.  Most of the unabsorbed units (173) are in the Halifax City sub-market and most are apartment-style condos and rental units which account for 152 of the 173 unabsorbed units.

A greater mix of new home sales in all price ranges resulted in the average price of a new home in HRM declining by 2.4 per cent in the first quarter of 2009 compared to last year.  The average price after three months of year was $328,524 compared to $336,456 in 2008.  The median price after three months was much lower at $289,900 compared to $319,000 last year.

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