Housing starts to stabilize: CMHC
Housing starts are expected moderate in the second half of this year and stabilize in 2011 at levels consistent with demographic trends, Canada Mortgage and Housing Corporation says. CMHC's second-quarter outlook, issued Tuesday, said housing starts are expected to be in the range of 170,200 to 198,400 units for 2010 as a whole as a result of the slowdown. ???Housing starts will moderate in the coming months as activity becomes more in line with long-term demographic fundamentals,??? Bob Dugan, CMHC's chief economist, said in a news release. In 2011, housing starts will be in the range of 146,900 to 210,500 units, CMHC said. Mr. Dugan also noted that existing home market conditions will remain balanced over the next two years as Multiple Listing Service re-sales ease and inventory levels remain elevated. Existing home sales will be in the range of 450,000 to 485,700 units in 2010.
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In 2011, MLS sales will move lower and are expected to be in the range of 425,000 to 490,700 units, CMHC said. With an improved balance between demand and supply, the average MLS price is expected to edge lower through the end of 2010 and then rise modestly in 2011, it added.