Canada Mortgage and Housing Corp. is forecasting increases in both the new home and resale housing markets this year and next year in Calgary and in Alberta.

In releasings its updated market forecast today, CMHC said the Calgary census metropolitan area will see total housing starts rise by 20.3 per cent this year to 7,600 units followed by a 21.1 per cent hike in 2011 to 9,200 units.

BY MARIO TONEGUZZI, CALGARY HERALD

MLS sales in the Calgary area are expected to climb by 10.9 per cent to 27,400 this yearand another 3.3 per cent in 2011 to 28,500.

Average MLS sale price in the Calgary region is forecast to jump by 5.5 per cent this year to $407,000 and another 3.9 per cent next year to $423,000.

In the province, housing starts are forecast to increase by 20.7 per cent this year to 24,500 units and by 22 per cent in 2011 to 29,900.

MLS sales will rise by 10.8 per cent in Alberta to 64,000 in 2010 and by another 3.9 per cent next year to 66,500.

Average MLS sale price for the province this year will jump by 5.1 per cent to $358,000 and by 3.9 per cent the following year to $372,500.