Real estate expectations fall

In its latest forecast released Tuesday, the Canada Mortgage and Housing Corp. reduced its expectations for new-home construction, sales and prices for this year and next.

Province-wide, the forecast calls for a 43-per-cent decline in housing starts compared with 2008. It estimates that builders will start work on 19,725 new housing units this year, with a 10-per-cent uptick to 21,000 new units in 2010 -- a far cry from the 34,321 built in 2008.

On home resales, the federal housing agency expects 2009 MLS-recorded sales to fall almost 16 per cent to 58,100 units before climbing again to 67,750 in 2010. Average prices are expected to hit $403,700 this year, an 11-per-cent dip, and increase a marginal 0.7 per cent in 2010.