Fewer home sales, lower prices, and declining housing starts are in the forecast for the remainder of 2009, according to the Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook report.

So if you’re looking to buy a home in Canada, the market continues in your favor.

But things will begin to change in 2010. The CMHC predicts that both home sales and housing starts will begin to rebound next year, although prices may remain at or near 2009 levels.

Nationwide, sales of existing homes are forecast to decline from 433,990 units in 2008 to 357,800 units in 2009. In 2010, home sales will increase slightly to 386,100 units but remain below 2008 levels. Average sale prices are expected to decline by 6.8 percent in 2009 and then see minimal change in 2010.

Similarly, housing starts are expected to decrease from 211,056 units in 2008 to 141,900 units in 2009, then increase slightly in 2010 to 150,300 units.

You can download the full report, which has additional details on the housing market in individual provinces, from the CMHC Housing Market Information page.

Photo ©Carolyn B. Heller