The New Year in the Halifax Regional Municipality (HRM) commenced with both new home starts and existing home sales increasing last month compared to January 2009.  Average MLS® prices continued to increase as did the average price of a new home compared to last year.  There were 63 total housing starts last month compared to 57 in January 2009, representing an increase of 10.5 per cent.  Single starts increased 31 per cent as 55 units broke ground in January, compared to 42 units in January of 2009.  There were eight semi-detached starts and zero row starts last month compared to two and 13, respectively, in January of 2009.

The number of units under construction decreased 15.3 per cent last month to 1,582 units compared to January of 2009 due primarily to fewer apartments under constrcution.  There were 479 rental apartment unit under constrcution phase a year ago.  The number of singles under construction was substantially unchanged.

The average price for a new single-detached unit increased 20 per cent to $332,078 in January of 2010 compared to last year.  The increase in average price is largely attributed to a decline in absorbed units priced under $250,000.  A year ago, over half (70 of 138) of all units absorbed were priced under $250,000, while only 21 per cent (17 of 80) were priced under $250,000 in January of 2010.

The median price of a new single-detached home in January was $290,400 compared to $249,900 last year.  Demand for new homes priced under $250,000 declined sharply in the HRM in January, specifically in Dartmouth City and Halifax County East, where many of these new units are located.

Existing home sales increased 33 per cent in January compared to last year with 280 sales reported compared to 211 to January 2009.  All but two areas (Halifax County Southwest and Halifax Country East) of the HRM reported an increase in sales last month.  The Fall River-Beaver Bank submarket reported an increase in sales from 12 in January 2009 to 25 last month.  Sackville, Dartmouth City and Halifax City reported increases in sales of 75, 55 and 36 per cent, respectively.

The average price of an existing home continues to rise steadily in HRM, increasing 2.5 per cent over January of last year to $239,349.  Each submarket, with the exceptions of Dartmouth City (decline of 4.7 per cent) and Bedford-Hammonds Plains (decline of 13.6 per cent) reported an increase in average sales price in January.  The largest price growth wsa reported in Sackville, where average prices increased 12.5 per cent over last year to $168,452.  The second largest price growth of 11.7 per cent was reported in Fall River-Beaver Bank, while Halifax City reported a price increase of 11.5 per cent to $302,032.  Halifax County Southwest and Halifax County East reported growth of 7.6 and 2.9 per cent respectively.

To view entire article go to www.chmc.ca look for "Housing Now-Halifax CMA-Date Released:  February 2010".