Overview:
Housing Starts:

For the second year in succession, housing starts across the Prairie Provinces are expected to fall by nearly one-third, says Marty Lapedus. This year’s decline will be attributed to a strong reduction in multi-family construction, particularly in Alberta and Saskatchewan. Single-detached construction will also weaken this year, though not to the extent of multiples. Single-detached builders in Saskatchewan will face the strongest decline this year, following the 29- year high in 2008.

Resales:

After a 21 per cent decline in 2008, MLS® sales across the Prairies will ease another 11 per cent this year before rebounding in 2010. All provinces will record weaker activity this year, though Saskatchewan’s decline will be most pronounced. All markets are responding to the prevailing Canada Mortgage and Housing Corporation 2 economic uncertainty and price escalation from previous years.

Resale Prices:

For the first time since 1982, each of the three Prairie Provinces will see their average resale price move lower. All provinces are facing a heightened level of active listings and weakening demand. Under these conditions, prices in 2009 will slip by a few percentage points in all.