Housing Market Information HOUSING NOW SUBSCRIBE NOW! Access CMHC’s Market Analysis Centre publications quickly and conveniently on the Order Desk at www.cmhc.ca/housingmarketinformation. View, print, download or subscribe to get market information e-mailed to you on the day it is released. CMHC’s electronic suite of national standardized products is available for free. Date Released: Housing market intelligence you can count on Canada Mortgage and Housing Corporation Table of Contents Halifax CMA January 2010 Home Sales and Starts Finish the Year Down While Prices Rise A stable December concluded a mixed year for the 2009 Halifax Regional Municipality (HRM) housing market. The local economy remained resilient in 2009, with continued growth in the labour force, employment and wages. However, economic uncertainty contributed to fewer MLS ® sales and new housing starts in 2009 relative to 2008. Average sale prices in the existing homes market grew by 3.2 per cent over 2008’s strong growth rate of 6.6 per cent. In the new homes market, following 2008’s average price decline of one per cent, prices for a new single-detached home in HRM increased by 1.6 per cent to $335,070. 1 Home Sales and Starts Finish the Year Down While Prices Rise 4 Map - Halifax CMA Total Number of Starts 5 Housing Now Report Tables 6 Report Tables (6-14) 15 Glossary of Terms, Definitions and Methodology 17 CMHC - Home to Canadians 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 Sales Average Price Source: Nova Scotia Association of REALTORS® & CREA MLS® is a registered trademark of the Canadian Real Estate Association Figure 1 Existing Home Sales and Average Price January to December, Halifax-Dartmouth Real Estate Board Area
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H o u s i n g M a r k e t I n f o r m a t i o n
HousIng now
SubScribe Now!Access CMHC’s Market Analysis Centre publications quickly and conveniently on the Order Desk at www.cmhc.ca/housingmarketinformation. View, print, download or subscribe to get market information e-mailed to you on the day it is released. CMHC’s electronic suite of national standardized products is available for free.
Date Released:
Housing market intelligence you can count on
C a n a d a M o r t g a g e a n d H o u s i n g C o r p o r a t i o n
Table of contents
Halifax CMA
January 2010
Home Sales and Starts Finish the Year Down while Prices rise A stable December concluded a mixed year for the 2009 Halifax Regional Municipality (HRM) housing market. The local economy remained resilient in 2009, with continued growth in the labour force,
employment and wages. However, economic uncertainty contributed to fewer MLS® sales and new housing starts in 2009 relative to 2008. Average sale prices in the existing homes market grew by 3.2 per cent over 2008’s strong growth rate of 6.6 per cent. In the new homes market, following 2008’s average price decline of one per cent, prices for a new single-detached home in HRM increased by 1.6 per cent to $335,070.
1 Home Sales and Starts Finish the Year Down While Prices Rise
4 Map - Halifax CMA Total Number of Starts
5 Housing Now Report Tables
6 Report Tables (6-14)
15 Glossary of Terms, Definitions and Methodology
17 CMHC - Home to Canadians
0
1,000
2,000
3,000
4,000
5,000
6,000
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
$240,000
Sales Average Price
Source: Nova Scotia Association of REALTORS® & CREAMLS® is a registered trademark of the Canadian Real Estate Association
Figure 1
existing Home Sales and Average Price January to December, Halifax-Dartmouth real estate board Area
2Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
Overall starts remained stable in December with 106 units breaking ground compared to 109 in 2008. Single starts experienced the largest increase, up 42 per cent to 92 units. Additionally, eight semi-detached units broke ground in December, up from six units in December 2008. There were no condominium or rental units started in December 2009, compared to ten and 20 units, respectively, in 2008.
For the year, total starts declined 17 per cent to 1,733 units, the lowest recorded level since 1,570 starts in 1982. The decrease was largely attributed to a steep decline in single-detached starts (down 26 per cent for the year), as well as significant declines in apartment-style condominium units (down 45 per cent).
Single-detached starts fell to 874 starts in 2009 compared to 1,177 in 2008. Single-detached starts were down 45 per cent after the first five months of 2009; however a strong June began an upward trend which continued throughout the remainder of 2009.
There was a 20 per cent decline in new home sales in HRM in 2009 compared to 2008. The average price of a new single-detached home increased in 2009 to $335,070, up from $329,765 in 2008. The median price in 2009 was $311,400, an increase of four per cent over 2008’s median of $299,900.
The percentage share of new single-detached homes priced under $250,000 declined in 2009 relative to 2008. Of the 1,209 new homes sold in 2008, 359 (29 per cent) were priced under $250,000, compared to 246 (26 per cent) in 2009. Homes priced between $250,000 and $399,999 experienced the largest gain in market share in 2009, up to 55 per cent from 52 per cent in 2008.
The overall price increase in 2009 was a result of each submarket, with the exception of Sackville, reporting an increase in average sale price. Halifax County East saw the largest growth of 19 per cent, followed by Dartmouth City (12 per cent), Fall River – Beaverbank (eight per cent) and Halifax City (seven per cent), respectively.
In the existing homes market, there were 5,862 MLS® sales in HRM last year, a decline of 5.6 per cent compared to 6,210 in 2008. Halifax City had the most existing home sales in 2009 with 1,476 - three per cent fewer than the 1,520 recorded in
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Single Semi & Row Apartment & Other
Source: CMHC
Figure 2
Housing Starts by Type January to December, Halifax cMA
-50% -40% -30% -20% -10% 0% 10%
Apt Condo
Single
Semi & Row
Rental
Source: CMHC
Figure 3
New construction Growth Limited to rental units Percentage change 2009 vs 2008 - January to December - Halifax cMA
3Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
2008. MLS® sales in Dartmouth City declined 14 per cent in 2009 to 1,438, while sales in Sackville, Halifax County East, and Fall River – Beaverbank reported declines of 3.2, 2.9 and 0.2 per cent, respectively.
Despite the decline in sales in 2009, the average price of an existing home increased by 3.2 per cent from $229,899 to $237,214, due in large part to the mix of homes sold. In other words, higher priced homes captured a larger percentage share of the market in 2009 and put upward pressure on the average price
All submarkets in HRM, with the exception of Halifax County Southwest and Halifax County East, recorded positive price growth in 2009. The highest price growth of 3.9 per cent was reported in Dartmouth City with Bedford-Hammond Plains (3.5 per cent) and Halifax City (2.9 per cent) experiencing the second and third highest price growth. Sackville and Fall River- Beaverbank reported modest growth of 0.7 and 0.3 per cent, respectively. Halifax County Southwest experienced a decline in prices of 0.5 per cent to $222,935, while Halifax County East reported a decline of two per cent to $182,395.
Average days on market for an existing home in HRM increased eight days to 95 days in 2009. All submarkets in HRM, with the exception of Halifax County East recorded an increase in days on market, with the largest increase of 20 days reported in Fall River- Beaverbank. Halifax County Southwest reported an increase of eight days to 93 days, while Halifax City reported a similar increase of nine days to 106 days on market.
4Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
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5Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
HOUSING NOW REPORT TABLES
Available in ALL reports: 1 Housing Activity Summary of CMA 2 Starts by Submarket and by Dwelling Type – Current Month or Quarter 2.1 Starts by Submarket and by Dwelling Type – Year-to-Date 3 Completions by Submarket and by Dwelling Type – Current Month or Quarter 3.1 Completions by Submarket and by Dwelling Type – Year-to-Date 4 Absorbed Single-Detached Units by Price Range 5 MLS® Residential Activity 6 Economic Indicators Available in SELECTED Reports: 1.1 Housing Activity Summary by Submarket 1.2 History of Housing Activity (once a year) 2.2 Starts by Submarket, by Dwelling Type and by Intended Market – Current Month or Quarter 2.3 Starts by Submarket, by Dwelling Type and by Intended Market – Year-to-Date 2.4 Starts by Submarket and by Intended Market – Current Month or Quarter 2.5 Starts by Submarket and by Intended Market – Year-to-Date 3.2 Completions by Submarket, by Dwelling Type and by Intended Market – Current Month or Quarter 3.3 Completions by Submarket, by Dwelling Type and by Intended Market – Year-to-Date 3.4 Completions by Submarket and by Intended Market – Current Month or Quarter 3.5 Completions by Submarket and by Intended Market – Year-to-Date 4.1 Average Price ($) of Absorbed Single-Detached Units SYMBOLS n/a Not applicable * Totals may not add up due to co-operatives and unknown market types ** Percent change > 200% - Nil -- Amount too small to be expressed SA Monthly figures are adjusted to remove normal seasonal variation
6Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
2009 January 627 5.00 5.79 150.4 113.1 214 5.6 71.2 744 February 627 5.00 5.79 150.5 113.9 215 5.9 71.6 755 March 613 4.50 5.55 150.5 114.1 216 6.0 71.8 758 April 596 3.90 5.25 150.5 114.7 216 5.9 71.6 759 May 596 3.90 5.25 150.5 115.3 216 5.8 71.7 749 June 631 3.75 5.85 150.5 116.0 217 5.9 71.8 748 July 631 3.75 5.85 150.5 116.1 218 6.0 72.2 746 August 631 3.75 5.85 150.5 116.2 216 6.4 71.9 754 September 610 3.70 5.49 150.7 116.3 215 6.6 71.6 755 October 630 3.80 5.84 150.7 115.4 214 6.8 71.3 755 November 616 3.60 5.59 151.1 116.5 214 6.9 71.4 749 December 610 3.60 5.49 115.8 215 6.8 71.5 751
"P & I" means Principal and Interest (assumes $100,000 mortgage amortized over 25 years using current 5 year interest rate)"NHPI" means New Housing Price Index"CPI" means Consumer Price Index"SA" means Seasonally Adjusted
Source: CMHC, adapted from Statistics Canada (CANSIM), Statistics Canada (CANSIM)
Unemployment Rate (%) SA
Participation Rate (%) SA
NHPI, Total, Halifax CMA 1997=100
CPI, 2002 =100
Halifax Labour Market
Average Weekly
Earnings ($)
Table 6: Economic IndicatorsDecember 2009
Interest Rates
Mortage Rates (%)P & I Per
$100,000
Employment SA (,000)
15Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
Methodology
Starts & Completions Survey Methodology The Starts and Completions Survey is conducted by way of site visits which are used to confirm that new units have reached set stages in the construction process. Since most municipalities in the country issue building permits, these are used as an indication of where construction is likely to take place. In areas where there are no permits, reliance has to be placed either on local sources or searching procedures.
The Starts and Completions Survey is carried out monthly in urban areas with population in excess of 50,000, as defined by the 2006 Census. In urban areas with populations of 10,000 to 49,999, all Starts are enumerated in the last month of the quarter (i.e. four times a year, in March, June, September and December). In these centres with quarterly enumeration, Completion activity is modelled based on historical patterns. Monthly Starts and Completions activity in these quarterly locations are statistically estimated at a provincial level for single and multi categories. Centres with populations below 10,000 are enumerated on a sample basis, also in the last month of each quarter (i.e. four times a year, in March, June, September and December).
The Starts and Completions Survey enumerates dwelling units in new structures only, designed for non-transient and year-round occupancy.
Mobile homes are included in the surveys. A mobile home is a type of manufactured house that is completely assembled in a factory and then moved to a foundation before it is occupied.
Trailers or any other movable dwelling (the larger often referred to as a mobile home) with no permanent foundation are excluded from the survey.
Conversions and/or alterations within an existing structure are excluded from the surveys as are seasonal dwellings, such as: summer cottages, hunting and ski cabins, trailers and boat houses; and hostel accommodations, such as: hospitals, nursing homes, penal institutions, convents, monasteries, military and industrial camps, and collective types of accommodation such as: hotels, clubs, and lodging homes.
Market Absorption Survey Methodology The Market Absorption Survey is carried out in conjunction with the Starts and Completions Survey in urban areas with populations in excess of 50,000. When a structure is recorded as completed, an update is also made as units are sold or rented. The dwellings are then enumerated each month until such time as full absorption occurs.
STARTS AND COMPLETIONS SURVEY AND MARKET ABSORPTION SURVEY DEFINITIONS
A “dwelling unit”, for purposes of the Starts and Completions Survey, is defined as a structurally separate set of self-contained living premises with a private entrance from outside the building or from a common hall, lobby, or stairway inside the building. Such an entrance must be one that can be used without passing through another separate dwelling unit.
A “start”, for purposes of the Starts and Completions Survey, is defined as the beginning of construction work on a building, usually when the concrete has been poured for the whole of the footing around the structure, or an equivalent stage where a basement will not be part of the structure.
The number of units “under construction” as at the end of the period shown, takes into account certain adjustments which are necessary for various reasons. For example, after a start on a dwelling has commenced construction may cease, or a structure, when completed, may contain more or fewer dwelling units than were reported at start.
A “completion”, for purposes of the Starts and Completions Survey, is defined as the stage at which all the proposed construction work on a dwelling unit has been performed, although under some circumstances a dwelling may be counted as completed where up to 10 per cent of the proposed work remains to be done.
The term “absorbed” means that a housing unit is no longer on the market (i.e. has been sold or rented). This usually happens when a binding contract is secured by a non-refundable deposit and has been signed by a qualified purchaser. The purpose of the Market Absorption Survey is to measure the rate at which units are sold or rented after they are completed, as well as collect prices.
16Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
DWELLING TYPES:
A “Single-Detached” dwelling (also referred to as “Single”) is a building containing only one dwelling unit, which is completely separated on all sides from any other dwelling or structure. Includes link homes, where two units may share a common basement wall but are separated above grade. Also includes cluster-single developments. A “Semi-Detached (Double)” dwelling (also referred to as “Semi”) is one of two dwellings located side-by-side in a building, adjoining no other structure and separated by a common or party wall extending from ground to roof. A “Row (Townhouse)” dwelling is a one family dwelling unit in a row of three or more attached dwellings separated by a common or party wall extending from ground to roof. The term “Apartment and other” includes all dwellings other than those described above, including structures commonly known as stacked townhouses, duplexes, triplexes, double duplexes and row duplexes.
Geographical terms:
A census metropolitan area (CMA) or a census agglomeration (CA) is formed by one or more adjacent municipalities centred on a large urban area (known as the urban core). The census population count of the urban core is at least 10,000 to form a census agglomeration and at least 100,000 to form a census metropolitan area. To be included in the CMA or CA, other adjacent municipalities must have a high degree on integration with the central urban area, as measured by commuting flows derived from census place of work data. CMAs and CAs contain whole municipalities or Census Subdivisions. A “Rural” area, for the purposes of this publication, is a centre with a population less than 10,000.
All data presented in this publication is based on Statistics Canada’s 2006 Census area definitions, except the Economic Indicators data (Table 6) which is based on Statistics Canada’s 2001 Census area definitions.
Intended market:
The “intended market” is the tenure in which the unit is being marketed. This includes the following categories: Freehold: A residence where the owner owns the dwelling and lot outright.
Condominium (including Strata-Titled): An individual dwelling which is privately owned, but where the building and/or the land are collectively owned by all dwelling unit owners. A condominium is a form of ownership rather than a type of house.
Rental: Dwelling constructed for rental purposes regardless of who finances the structure.
17Canada Mortgage and Housing Corporation
Housing Now - Halifax CMA - Date Released - January 2010
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