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    2008/2009 Housing Market Forecast
                      

                                     By Robert Wambolt, President NSAR Press Release Nov 14, 2008 

In line with the recent downward revisions of Canadian economic and job growth forecasts, CREA has updated its MLS® housing market forecase for the balance of 2008 and for 2009.

At the end of 2008 in Nova Scotia, MLS® residential unit sales are forecast to be down 3.9 per cent compared to 2007. In 2009, Nova Scotia's sales are forecast to decrease 2.2 per cent. Compared to provinces like Saskatchewan looking at a -13.6 per cent change and British Columbia with a -11.7 per cent change, Nova Scotia's market forecast appears to be slowing but stable.

Nationally, home sales activity is now forecast to decrease by 12 per cent to 461,200 units in 2008, and decrease by three per cent in 2009. The number of new listings is forecast to decline further from the peak reached in the second quarter of 2008, with levels in 2009 on par with levels in 2007.

Fewer new listings will stabilize the resale housing market in 2009. Average home prices will reach new heights in nearly all provinces in 2008, but declining activity in higher priced markets will hold the national average price stable this year compared to 2007.

Nova Scotia's average price is forecast to rise to $194,000 in 2009, a 2.6 per cent change from 2008. This mild increase again speaks to the stability of the market in Nova Scotia. While the average price is forecast to reach new heights in six of ten provinces in 2009, lower sales activity in British Columbia will continue weighing on the national average price. The national average price is forecast to ease by 2.1 per cent in 2009.

Canadian economic growth is forecast to start improving in the second half of 2009 before accelerating in 2010. Re-aligning housing market balance and improving home affordability will set the stage for an improving housing market in 2010.

While in some areas consumer confidence is threatened by bad news stories about Canadian economic growth, it is important to paint a realistic picture of the market in Nova Scotia. What is happening in other parts of Canada is not necessarily what is taking place here. It is important to remember that our market is local and its real estate is always a good investment in Nova Scotia.