Canadian Starts Could Total 152,000-189,300 Units in 2010

Canada Mortgage and Housing Corp. estimates Canadian housing starts will increase in 2010 to somewhere between 152,000 and 189,300 units, up from 149,081 units last year. Bob Dugan, CMHC's chief economist, said Canada's existing home market has become a sellers' market, in contrast to the beginning of 2009 when it was a buyers' market. "The relative lack of new listings for existing homes has pushed some of the demand into the new home market, which helps explain the forecast for higher housing starts activity in 2010," CMHC said. CMHC estimates existing home sales in Canada this year will be on the order of 455,350 to 509,900 units. "With an improved balance between demand and supply, the average [multiple listing service] price is expected to remain close to the average in the last quarter of 2009, for most of 2010, and then rise modestly in 2011," according to the CMHC. The CMHC estimates housing starts in 2011 will total somewhere between 156,400 to 205,600 units.