Canada's housing market is on the rebound with resales expected to set a new annual record this year and homebuilding is off to a strong start, according to two reports issued Monday. The Canadian Real Estate Association is forecasting that national home sales activity will reach 527,300 units this year, up 13.3 per cent from 2009. This would be a new annual record, up 1.2 per cent above the previous peak in 2007, CREA said Monday. Low interest rates and home buyers wishing to avoid the harmonized sales tax before it comes into effect in Ontario and British Columbia will help fuel the resales in the first half of this year, the association said in a news release. "Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009," said CREA chief economist Gregory Klump.
By Luann Lasalle, The Canadian Press