CMHC ups 2011 HOUSING STARTS VIEW
Canada Mortgage and Housing Corp (CMHC) slightly raised its forecast for 2011 housing starts on Monday, citing an improving economy and still-low interest rates.
In a second-quarter housing outlook, the federal housing agency also forecast higher existing home sales than industry group Canadian Real Estate Association (CREA).
It said it expected housing starts to total 179,500 units this year, then climb to 185,300 units in 2012.
In February, CMHC had said it expected 2011 housing starts of 177,600, rising to 183,800 in 2012.
New Canadian government regulations are expected to take the heat off the housing market, once the main source of Canada's economic growth. The latest changes, aimed at mortgage amortization and refinancing, came into effect in the spring.
"We are expecting new and existing housing markets to fall in line with demographic fundamentals, as changes to mortgage rules take hold," said Bob Dugan, chief economist for CMHC.
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