WRAPUP 1-Canada housing seen slowing, building permits drop

Mon Nov 5, 2012 11:52am EST
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* House starts slower in 2012-2013, federal CMHC agency says

* CMHC sees existing-homes sales bouncing back in 2013

* Sees price gains of 0.2 pct in 2012, 1.5 pct in 2013

* Non-residential building permits plunge in September

By Andrea Hopkins

TORONTO, Nov 5 (Reuters) - The pace of homebuilding in Canada will continue to moderate in the last quarter of 2012 and into 2013, while existing home sales should hold steady and prices climb at or just below the inflation rate, Canada Mortgage and Housing Corp says.

The federal housing agency's forecast on Monday for a weaker, but still healthy, housing sector echoed a string of data that has shown Canada's recently red-hot real estate market cooling, but without signs of a crash landing.

"A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011, which contributed to support multi-family starts this year, will bring moderation in housing starts next year," Mathieu Laberge, deputy chief economist at CMHC, said in the agency's fourth-quarter outlook.

"Nevertheless, employment growth and net migration will help support housing starts activity going forward," he added.   Continued...