Canada is starting to track U.S. housing starts downward. However, the magnitude of decline should not be anything like as great. U.S. starts have fallen nearly 60% from their peak in January 2006 to the present. All indications are that interest rates are low enough, employment levels are high enough, home prices are reasonable enough and economic prospects are strong enough − based on resource wealth, if nothing else − to maintain housing demand at only slightly below 200,000 units as a floor level.

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