Resale market is slowing down?

Resale market peaks but still strong: CMHCOct 24, 2005
Sales of existing homes will establish a new record of 476,000 units in 2005, then dip to 453,700 units in 2006, says Canada Mortgage and Housing Corp��s CMHC) fourth quarter Housing Market Outlook. After posting their strongest increase in 16 years in 2005 (10.2 per cent), house price growth in 2006 will moderate to 4.9 per cent as existing home markets become more balanced, CMHC says.
Housing starts will ease in 2005, and reach 223,600 units, a decrease of 4.2 per cent from the 17-year high in 2004, says the federal housing agency. In 2006, residential construction will remain strong at 207,200 units, the fifth consecutive year that starts are over the 200,000 level.
��Housing markets across the country continue to respond to low mortgage rates,�� says Bob Dugan, chief economist at CMHC. ��However, increased competition from the existing home market and rising mortgage carrying costs due to strong house price growth and modest increases in mortgage rates will slow the pace of new home construction in 2006."

Source: CMHC Housing Market Outlook, Canada Edition, Fourth Quarter 2005.