In the housing market, starts for 2009 are expected to come in at 16,460 units for the region, down 30 per cent from 2007 when there were 23,416 starts.
Home sales are forecast to drop 33 per cent for 2008 but will climb back modestly by five per cent in 2009 and 11 per cent in 2010, according to the credit union analysis. Prices are down as well, declining by an estimated 16 per cent from a peak in February 2008 to the bottom of the trough in late 2009. Several years of level prices are expected to follow.
Hobden said a crucial economic indicator, the region's trade deficit, is going to improve. It's currently at $15.5 billion, fuelled by several years of strong consumer spending on products that are imported into the region. An expected weakening of the Canadian dollar will increase exports, while less spending by consumers will hurt imports, driving the deficit down to $14 billion by 2010.
