• Population: 398,000 (Stats Canada 2009)
• A 1.7% increase is expected in economic growth in both 2010 and 2011.
• Economic growth will be a result of energy-related investments.
• Employment rate remains high due to strong in-migration and steady consumer spending.

Halifax Mortgage Rates Will Slowly increase in 2010.

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Halifax 2010 Housing Outlook

The Halifax housing market will be strong in 2010, according to CMHC. This strength is due to higher wages, strong employment levels and new migrants to the city.

A 22% increase is expected in 2010 for new home construction. Single starts are forecast to increase 14% with 1,000 units and a further 5% with 1,050 units in 2011. Whereas, multiple starts are expected to increase 30% with 850 units in 2010 and another 10% with 950 units in 2011. New home prices are expected to modestly increase in 2010 and 2011.

A 6% increase is expected in MLS sales in 2010 and a further 2.4% increase in 2011. This increase is a result of low mortgage rates and the people taking advantage of the market conditions. The average home prices will also increase. In 2010, the price is expected to reach $243,500 and $250,000 in 2011. This increase is after two years of having a decline in MLS sales. Sales are expected to higher than 6,000 in 2010 and higher than 6,300 in 2011.

CMHC Halifax housing market & Halifax mortgage rate forecast