Housing market to improve in 2010: CMHC
OTTAWA — Home construction is expected to continue rebounding in the second half this year and into 2010 as demand increases and inventories decline, according to Canada Mortgage and Housing Corp.
Housing starts are forecast to reach 141,900 in 2009 and rise to 164,900 next year, the federal agency said Monday in its quarterly outlook.
“We expect housing markets across Canada to strengthen leading into and over the course of 2010 as economic conditions improve,” said CMHC chief economist Bob Dugan.
“Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010,” Dugan said.
Existing home sales are expected to reach 441,300 units this year and increase to 445,150 units in 2010, CMHC said in its report.
The average price is forecasts to be $312,950 in 2009 and $324,500 next year, it said.