Housing Starts Poised to Slow in Canada?

New housing construction appears poised to slow this year in Canada, according to the Canada Mortgage and Housing Corp.Housing starts in Canada are expected to decline to 209,500 units in 2007 from 227,395 units in 2006, according to the corporation. "Most of the pent-up demand that built up during the 1990s has been absorbed, and higher mortgage carrying costs due to continued strong price growth and modest increases in mortgage rates will contribute to the slower pace of new home construction both this year and next," said Bob Dugan, chief economist of the CMHC.