CMHC hikes third-quarter forecast for housing starts, resales

An expected correction in the Canadian housing market is not in the cards, says Canada Mortgage and Housing Corp.’s third-quarter outlook. CMHC forecasts the market will ease slightly but remain steady this year and next. Mathieu Laberge, deputy chief economist for CMHC, said “. factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector.” In fact, CMHC raised its outlook for 2011 starts to 183,200 units from 179,500 in its second-quarter report, and sees 183,900 units for 2012. In 2010, there were 189,930 starts. CMHC forecasts resales will total 446,700 units in 2011, about the same as in 2010, although slightly lower than its second-quarter forecast of 452,100. It sees sales rising modestly in 2012 to 458,000 units. “We expect mortgage rates will be flat this year and to start increasing only later in 2012.”