Housing agency ups 2011 housing starts view (Reuters)

TORONTO (Reuters) – Canada Mortgage and Housing Corp (CMHC) slightly raised its prognosticate for 2011 structure starts on Monday, citing an rising economy and still-low welfare rates.

In a second-quarter structure outlook, the federal structure agency also prognosticate higher existing bag income than business assemble Canadian Real Estate Association (CREA).

It said it due structure starts to total 179,500 units this year, then climb to 185,300 units in 2012.

In February, CMHC had said it due 2011 structure starts of 177,600, rising to 183,800 in 2012.

New Canadian polity regulations are due to verify the heat off the structure market, once the important source of Canada's scheme growth. The stylish changes, aimed at mortgage diminution and refinancing, came into gist in the spring.

"We are expecting newborn and existing structure markets to fall in distinction with demographic fundamentals, as changes to mortgage rules verify hold," said Bob Dugan, honcho economist for CMHC.

Additionally, Canadian welfare rates are due to meet low for a little patch individual despite Monday's accumulation that showed Canadian ontogeny expedited to nearly 4 proportionality in the first quarter. Second-quarter ontogeny is due to be around half of that.

The Bank of Canada will raise welfare rates some time in the third quarter, in either July or September, a Reuters analyse terminal hebdomad showed.

CMHC predicted existing bag income of 452,100 units this year, which would be 1.16 proportionality above the 2010 tally of 446,936 units. That is also slightly aweigh of CREA, which sees 2011 income dipping 1.3 proportionality to 441,100 units from 2010.

In 2012, CMHC sees income moving up to 461,300 units, also higher than CREA's prognosticate of 452,500 units.

Both groups say the past process in the cipher domestic toll reflected strong income in Vancouver's resale market. CMHC expects the cipher toll to moderate for the residual of the assemblage but gave no figure.

(Reporting by Ka Yan Ng; redaction by Janet Guttsman)

Source