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Housing starts continue steep decline
Scotiabank says Canadian residential activity may further moderate in 2009, with housing starts expected to fall 27 percent, amid a general weakening in the domestic economic conditions. "Housing starts are forecast to fall to around 155,000 units — below longer-term replacement demand — with declines across all provinces and in both multi-family and single-family segments," analyst Adrienne Warren said in a note to clients in Toronto. The analyst also expects average prices to drop further by 10 percent.
Canadian housing starts totaled 211,056 units in 2008, down about 8 percent from an average of almost 230,000 units from 2004 to 2007, Warren said. While home sales and construction in Canada seem sure to fall further in 2009, the outlook for renovations is somewhat mixed, the analyst said.
Ottawa's recently announced renovation tax credit for households has the potential to provide a significant boost to the industry in 2009, Warren said. The measure provides a 15 percent refundable tax credit on eligible renovation expenditures between $1,000 and $10,000, completed prior to February 2010, the analyst said.
"Many homeowners will undoubtedly take advantage of this year's price discount," Warren added.
February 26, 2009 in Canadian Market Forecast | Permalink
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Comments
These numbers are occuring all over the place. Scary times.
Posted by: Prince William Homes | Mar 1, 2009 8:09:52 PM
Do you really expect a turn around at the end of the year, or do you think they are just saying this?
Posted by: Atlanta real estate | Mar 1, 2009 10:39:27 AM
