New Home Construction
Construction of new homes in the HRM will likely rebound by over 16 per cent in 2010. This activity follows a decline of 16 per cent in ’08 and the expected decrease in 2009 of over 15 per cent.
Existing Home Sales
Existing home sales remained weak in 2009 but are expected to rebound significantly 2010. MLS sales were expected to decline by approximately 11 per cent in 2009 before climbing by over six per cent in 2010. Average home prices will continue to rise reaching approximately $237,500 in 2009 and will increase to approx. $243,500 in 2010!!!
Potential home buyers have been exercising caution thus far due to the economic climate last year and have delayed decisions on buying. We are starting to see increased activity by buyers as we come out of the recession. As expected, we are seeing consumers begin to take advantage of the current buyers’ market conditions and as a result sales should start to increase as we get further into 2010.
Existing home sales will remain well below the record levels set in 2007 when sales reached nearly 7,000 in the HRM. Sales were expected to exceed 6,000 in 2009 or even in 2010. The weaker levels of demand by buyers will result in slower positive price growth than has been seen in the last decade. From 1999 to 2008 the average price of an existing home increased by an average of 7% per year. In the forecast period, expect relatively weaker levels of demand to result in price growth of approximately 3.3 per cent in 2009 and 2.5 per cent in 2010. Average price in 2010 as mentioned before is expected to be about $243,500.