sales are "still strong"

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House prices are going to go up next year, albeit by a mere $200, according to Canada Mortgage and Housing Corp.
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The Crown corporation warned that some moderation can be expected in the once red-hot housing sector for the rest of this year and into 2009.
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The forecast comes as house prices have been falling nationally, according to the Canadian Real Estate Association. Canada's largest housing markets have experienced prices declines from a year ago for four straight months, with each percentage drop bigger than the next.

Now CMHC has waded into the debate with its own forecast that despite the recent trend, home sale prices should edge up this year.
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' c' L, }7 [. ~' }It expects the average price of a home sold to rise to $306,500 from $305,707. By next year the average sale price is forecast to rise to $306,700.
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"High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year," said Bob Dugan.
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; v( Q$ _( ]1 x* Y% `4 UHowever, CMHC is clearly predicting a pullback and titled its latest report, "Housing market starting to ease."
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! p5 r8 X6 ]; H. g. n, t# o5 b4 Q5 ZIt says for the first time in seven years the number of new homes built across the country will dip below 200,000.
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' {, j2 l# d! v+ x  OThe agency is forecasting 212,188 starts for this year which will be a drop from the 228,343 homes built in 2007. By 2009, the forecast is for 177,975 new homes to be built.
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' f- Z7 S, y; NThe prognosis is not much better for the sales of existing homes. After setting an all-time sales record of 523,701 transactions in 2007, sales are expected to drop to 452,225 in 2008 and 433,375 in 2009.
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CMHC says those sales are "still strong" by historical standards.

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