Real Estate Forecast by CMHC

Canada Mortgage and Housing Corporation says housing starts should hold steady for the rest of 2011 and into next year.

The agency said its national point forecast is for 183,200 units started in 2011, with about 183,900 next year.

It's third-quarter housing market outlook says starts have been strong in the last few months, but are expected to moderate closer in line with demographic fundamentals.

It said that immigration and low mortgage rates are supporting Canada's housing sector, despite the recent financial turmoil in the markets.

CMHC's point forecast for existing home sales is 446,700 units, which is essentially the same level as last year.

It says sales are expected to grow “modestly” in 2012, with a point forecast of 458,000 units.

The average price increased in the first half of the year due to more higher-end homes being sold, but the average price is expected to moderate in the end of 2011.

It says growth next year should be more modest.