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  Sandy and Judy Hines 902-877-4668 902-489-4663 sandy@sandyhines.com |
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CMHC predicts big bounce in Halifax home sales, starts Average prices also expected to rise
Residential construction and existing home sales in Halifax will rebound in 2010 and 2011, says Canadian Mortgage and Housing Corp.
“Positive migration patterns, strong employment levels and near record wages will be supportive of housing demand in Halifax in 2010 and 2011," CMHC market analyst Tim Andrews said in a news release Wednesday.“New home construction in Halifax is expected to rebound by 22 per cent to 2,120 units in 2010 and increase a further 7.5 per cent in 2011," he said.
“Single-detached starts will climb approximately 14 per cent this year and five per cent in 2011. Multiple starts are forecast to rise 30 per cent in 2010 and another 10 per cent in 2011." Andrews said in an interview the big bounce in new home construction in Halifax marks a return to prerecession levels of activity following the economic downturn of 2009.
“That’s getting us up to comparable 2008 levels," he said Wednesday.
Existing home sales in Halifax are expected to grow this year and next year, Andrews said. “MLS sales will grow by almost six per cent in 2010 to 6,200 units and increase a further 2.5 per cent in 2011," he said. “Average home prices will continue to rise, reaching approximately $243,500 in 2010 and $250,000 in 2011."
CMHC said housing starts will increase across Atlantic Canada this year and in 2011 as low interest rates, rising incomes and moderate job growth encourage consumer spending. “Single starts will see a moderate recovery in 2010 and 2011 as the economy in Atlantic Canada continues to rebound," said CMHC regional economist Alex Mac-Donald in a news release.“Low vacancy rates and demographic trends related to an aging population will contribute to stability for multiple starts, which will remain flat in 2010 and rise moderately in 2011."
Existing home sales in Atlantic Canada are also expected to increase
in 2010, with Nova Scotia experiencing a three per cent jump in sales.Moderate
inventory declines in 2009 are expected to push up regional housing prices
in 2010.
Heritage Gas , the province’s only gas distributor, will spend $30-million this year making natural gas available to homes and businesses on the outskirts of Halif ax.
The expansion will bring natural gas to Fairview, Clayton Park, Bayers Lake and Bedford and should take about six months to complete, Heritage Gas announced Thursday in a news release.
The company has filed its expansion plans with the Nova Scotia Utility and Review Board on Dec. 1, 2009, and indicated this month that it would seek a permit so construction can begin.
CMHC Forecasting 6% Increase in House Sales in 2010
CMHC have forecast that the number of residential properties sold in
2010 will be 6% more than in 2009. Although sales dropped almost 8% in
2009 over 2008 the level of sales activity was near the record levels
of a few years earlier. The real estate market in HRM< showed great
strength throughout the economic crisis because the market is supported
by military, government office,hospitals, universities and other recession
proof employers.
Bus Service Expanded to Fall River, Enfield and Cow Bay - Feb.. 2010
Halifax Regional Municipality has a new plan to pave the way for Metro
Transit.
The $93-million plan, to be implemented over five years, will bring limited
bus service to rural areas, including Cow Bay, Enfield and Fall River.
New MetroLink routes will also be added, connecting Clayton Park and Spryfield
with downtown Halifax. The initiative will introduce the Clayton Park
link by next year.
Metro Transit will purchase 102 more buses under the plan.
Halifax tops in Q3 economic growth, CIBC says
- Dec 2009
Halifax is on the move, according to a new CIBC study.
For the first time, Halifax ranked first among Canadian citesties
for economic momentum, says the bank’s third-quarter Metro Monitor.
“The (nation-leading) ranking of Halifax was achieved despite the
fact that the city did not lead the nation in any of our macro categories,
reflecting its relatively diversified sources of economic growth and reduced
vulnerability to economic shocks," CIBC senior economist and monitor
author Benjamin Tal said Tuesday in a news release.
The monitor uses nine macroeconomic variables, including population
growth, employment growth, unemployment rates and bankruptcy rates, to
measure metropolitan economic activity.
Mr. Tal called Halifax’s top finish in the quarter, during which
the city’s overall employment grew by three per cent year-overyear,
a notable improvement from its fifth-place finish six months a go.
Statistics Canada said this week that a 0.4 per cent annualized jump in
Canada’s GDP officially ended the recession.
But Mr. Tal said Canada’s major cities are still hurting, with 10
of the top 25 urban areas, which generate two thirds of the country’s
GDP, showing negative growth in the quarter.
Finishing behind Halifax in the top 10 were Regina, Saskatoon, Sherbrooke,
St. John’s, N.L., Saint John, N.B., Toronto, Winnipeg, Quebec City
and Montreal.Vancouver ranked 12th, Edmonton was 13th and Calgary 15th.
On April 14, 2009 the Provincial Government announced several new schools for HRM . They are as follows:
New $34 million Bedford High School in 2012, New $15 million Joseph Howe school in Halifax 2013, New $13 million LeMarchant -St Thomas Elementary School in 2014, New $24 million Prince Arthur/Southdale-North Woodside 2014. There will also be major renovations completed on Dartmouth High School and Inglis Street Elementary.
Halifax is bucking the national trend. CMHC reported that there were 128 new housing starts in February 2009 compared to 86 starts in 2008. In the Atlantic Region there were 262 new starts compared with 255 in 2008. Although single detached housing starts are expected to be slower in 2009 the increase in semi-detached and townhouse units will pick up the slack. The regions balanced market was cited as the reason the area is bucking the national trend. CMHC forecasts total residential starts in Halifax will drop slightly to 2000 units down from 2,100 in 2008.
Manpower Inc. reported that a survey of employers in Halifax found that only 3% of employers intended to reduce their labour force in 2nd Quarter of 2009, 27% plan to hire and 70% plan to maintain the same level. Nationally only 15% expect to hire while 9% planned cutbacks. The reason cited for this was that the economy of Halifax is based on military, medical, government and education which are core services that are insulated from economic turmoil.
The Federal budget for 2009 included three items that
apply to real estate.
1) The First Homebuyer's Plan is a 15% tax rebate on amounts spent for
closing costs up to $5000. The maximum credit is $750. The way it works
is you can claim a credit , not deduction but an actual reduction in your
income tax, up to $750 on 2010 Income Tax Return. The property must have
been purchased after January 27, 2009. First Homebuyer means you or your
spouse or common law partner cannot have owned a home in the last 5 years.
For example if you close a property and spend $5000 in closing costs such
as deed transfer, legal etc you would be eligible to claim 15% of that
as a tax credit or $750. However if you only spent $4000 you would only
be entitled to 15% of the $4000 or $600.
2) The limit for the amount of funds a First Home Buyer can withdraw from
their RRSP to buy a home is increased to $25,000 from $20,000.
3) A 13.5% tax credit for home renovations of more than $1000 and up to
$10,000 was added. The maximum tax credit is $1,350. Renovations include
such things as roof, windows etc. The way it works is you receive a tax
credit on your 2010 Income Tax Return of up to $1,350. For example say
you had a new roof installed and new windows and it cost you $9000. You
would be entitled to 13.5% x $9000 or $1,215. if you spend over $10,000
you are only entitled to a maximum of $1,350.
For details on the Budget go to http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp
Next spring, link to communities along Highway 103 will be up, running
Halifax’s successful MetroLink commuter buses are about to get a new rural cousin.
MetroX will be launched next spring and will link communities along Highway 103 as far out as Upper Tantallon to downtown Halifax .A $1.35-million tender for 10 buses, the first phase of the project, is to be awarded to Overland Custom Coach (2007) Inc. when council meets tonight.The rest of the project, which will eventually be expanded to 30 buses over three years at a cost of $4.23 million, will be completed as council approves funding through future capital budgets, a staff report says.MetroX buses will leave from the Sobeys shopping centre at Exit 5 on Highway 103 and stop only at park-and-ride lots at exits 4 and 3. The trip to downtown Halifax will take about a half-hour and cost passengers $4 to $5 each."This will hopefully get started next spring and it will take a lot of traffic off the roads," Councillor Gary Meade (Hammonds Plains-St. Margarets) said Monday. Transfers to other bus routes in the downtown will not cost extra, he said."So when you think about the price of gas and parking, it will make up for it," he said. Monthly passes will likely be offered too, he said, but the details will be worked out over the next few months.
Future phases of MetroX will include service along the Highway 101, 102 and 107 corridors.
MetroLink debuted in Portland Hills back in August 2005. The direct-service commuter bus, which connects bedroom communities with downtown Halifax, then expanded to Lower Sackville in February 2006.
The service has proven so popular that park-and-ride lots in both suburbs quickly had to be expanded.
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