CMHC Nova Scotia Housing Market Outlook
For Nova Scotia, declining employment combined with elevated levels of out-migration resulted in a reduction in single-detached housing starts last year. In 2014, expect single starts to remain weak as out-migration along with an aging population base will continue to shift demand away from single-detached construction. However, improving economic conditions in 2014 and 2015 will result in singles reporting modest increases to 1,690 and 1,750 units, respectively.
Nova Scotia’s multi-family market remained strong in 2013. In 2014 and 2015, expect further strength in apartment unit demand, specifically in Halifax, to support provincial construction activity. Demand for apartment units will continue to be driven by an aging population base and their evolving needs. Expect apartment starts to total 1,585 units in 2014 before declining further to 1,250 units in 2015.
Semi-detached and row units will remain a popular alternative over the forecast period reaching 650 units in both 2014 and 2015.
Following a sharp decline in 2013, MLS® sales in Nova Scotia are forecast to climb to 9,300 units in 2014.
In 2015, expect modest economic and employment growth to result in increased activity in the resale market, pushing sales up a further three per cent to 9,600 units.
Reduced activity in the MLS® market in 2013 resulted in the average price of an existing home declining close to two per cent last year. In 2014 and 2015, expect prices in the province to report little change at $218,500 and $219,500, respectively.
Source: CMHC, Housing Market Outlook: Atlantic Region Highlights, First Quarter 2014.
