CALGARY - The investment value in new residential construction in Alberta has fallen by nearly $350 million from a year ago.

According to figures released by Statistics Canada on Monday, investment in that sector in the province was $427.3 million in April compared with $773 million in April 2008.

A drop in housing starts combined with a decline in prices has contributed to the overall fall in the investment level, said Richard Corriveau, manager of market analysis for the Prairies and Territories region for Canada Mortgage and Housing Corp. in Calgary.

“If you look at the New Housing Price Index for Alberta in April it was down 10.7 per cent on a year-over-year basis. Not only are people constructing fewer housing units but they’re constructing those at a lower price as well.”

Corriveau said the CMHC is “cautiously optimistic” that the housing market is approaching bottom.

“We’ll still see some volatility in the months ahead based on the multi-family segment of the market. Nonetheless we do believe that single-detached homes will reach a bottom this year and start to see a modest improvement as we head into 2010,” he said.

“A return to recent historical averages we think is off the table but we do think we’re at or close to a bottom.”

The CMHC is forecasting total housing starts in the province this year will be down by 53 per cent from a year ago but rebound in 2010 with an 18 per cent hike year-over-year.

According to Statistics Canada, the investment value in Alberta for single-detached homes fell from $480.9 million in April 2008 to $300.7 million in April. For new apartment construction, it decreased from $197.8 million a year ago to $84.3 million today.

Nationally, overall investment in new residential construction dropped to $2.7 billion in April from $3.7 billion in April 2008.