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 Vancouver Sun News Update

"Canadian lenders have launched some alternative mortgage options in the past year, but they appear to be more conservative and are unlikely to overdo any subprime lending, which has been the problem affecting the U.S. housing and borrowing markets," she said.

According to CREA's most recent forecast, the national resale housing market will become more balanced next year, but will continue to favour the seller in most provinces.

Resale housing markets in the Western provinces will remain the tightest in the country and annual increases will be greatest in that region, CREA said.

RESIDENTIAL AVERAGE PRICE FORECAST

Annual percentage change: 2007(f)* 2008(f)

B.C. +9.9% +5.7%

Alberta +24.6% +6.6%

Sask. +17.4% +5.5%

Manitoba +11.2% +7.7%

Ontario +8.6% +4.8%

Quebec +6.7% +6.1%

Canada +10.4% +5.5%

RESIDENTIAL UNIT SALES FORECAST

Annual percentage change: 2007(f) 2008(f)

B.C. +4.6% -1.6%

Alberta +5.6% -4.5%

Sask. +33.7% -1.2%

Manitoba +6.5% -1.0%

Ontario +8.2% -1.5%

Quebec +11.3% -1.6%

Canada +8.1% -2.0%

* (f)=forecasts Source: CREA