Source: The Canadian Press

The national housing agency says housing starts rebounded in the second half of 2009 and will further strengthen this year.

Canada Mortgage and Housing Corp.’s first-quarter market outlook predicts housing starts will range between 152,000 and 189,300 units in 2010, up from 149,081 in 2009.

And the agency says housing starts will number between 156,400 and 205,600 units in 2011.

CMHC’s chief economist, Bob Dugan, says housing markets will benefit from improving economic conditions and low mortgage rates.

Dugan says recent federal government measures will help moderate housing activity as some potential buyers will have to save a larger downpayments or consider less-expensive homes.

Dugan says the existing conditions have shifted to a sellers’ market from a buyers’ market at the beginning of 2009.

The relative lack of new listings for existing homes has pushed some of the demand into the new home market, which helps explain the forecast for higher housing starts activity in 2010.