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By The Daily Gleaner

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Total housing starts in New Brunswick are expected to nudge up to 3,535 units in 2010, following a decline to 3,400 units so far in 2009, says Canada Mortage and Housing Corp. in its new housing market outlook.

The government outlook dovetails with word from the New Brunswick Real Estate Association that the number of multiple-listing service home sales in September was down 11 per cent from levels a year ago. In September, 589 housing units were sold in the province.

Of the homes that sold, the average residential price increased in all regions of the province. Saint John saw an 11 per cent price hike. Moncton posted a 10 per cent hike in average price and Fredericton saw a two per cent increase.

The average house price in New Brunswick in September was $151,728. That's the highest average price for the month of September on record, said the real estate group.

"Consumer sentiment about making a major purchase such as a home or car strengthened through the third quarter, which bodes well for the months ahead," said Dwayne Hayes, president of the New Brunswick Real Estate Association.

"The number of new listings on the MLS (multiple-listing service) continues to decline, so sales activity will draw down inventories over the rest of the year if current trends continue."

The dollar value of all residential multiple-listing service sales in New Brunswick hit $89.4 million in September, compared to $88.4 million in September 2008.

Claude Gautreau, Canada Mortgage and Housing Corp.'s senior market analyst for New Brunswick, said the home market is expected to see stronger price growth next year and increased sales.

"Although housing activity has diminished in 2009, the province's economic fundamentals remain strong," said Gautreau.

Employment levels in New Brunswick are at historic high levels, he said.

With construction starts trailing this year, Gautreau said the housing market is poised for a moderate rebound, predicting price growth and increased sales next year.

"The number of new listings on the MLS continues to decline, so sales activity will draw down inventories over the rest of the year if current trends continue," Hayes said.

Provincewide, there were 5,416 units up for sale to the end of September.

The New Brunswick Real Estate Association represents more than 1,000 agents, sales people and affiliate members in the province.