(Source: CBC News)

Canada’s housing market should fall substantially in 2009 because a faltering economy likely will suppress how many new homes are built and existing homes are traded, according to a report released Tuesday. 

The Canada Mortgage and Housing Corporation said that the number of new residential starts across Canada will drop in 2009 by almost 50 per cent while existing home sales nationwide will tumble by 21 per cent.

The Crown agency released the figures in its second-quarter market analysis.

CMHC said Canada will see approximately 141,000 new housing starts in 2009, a drop of almost 70,000 compared to 211,056 starts nationally for 2008.

As well, the country’s national housing agency now forecasts that existing home sales will drop to about 358,000 on an annualized basis in 2009, compared to 433,990 sales in the previous year.

While the Canadian real estate market has performed better than its U.S. counterpart, the CMHC forecast likely does not come as a huge surprise as economists have watched the housing sector slide along with the overall national economy.

Read the full article “Canada’s housing market to fall by double-digits in ’09: CMHC” in the CBC News (May 19, 2009).

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