sales are "still strong"

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House prices are going to go up next year, albeit by a mere $200, according to Canada Mortgage and Housing Corp.
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% o" Z* c$ g. F- YThe 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.

/ a0 E& g4 M, t: |- Y) QThe 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.
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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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3 N% \1 N' P7 |; f# [1 k* e9 sIt 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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, z5 v( ^, x/ H"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.

; r4 j( A! m* wHowever, CMHC is clearly predicting a pullback and titled its latest report, "Housing market starting to ease."
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It says for the first time in seven years the number of new homes built across the country will dip below 200,000.

/ Q& u) C3 I5 uThe 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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0 I9 g& o+ `& J2 Y5 KThe 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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