Source: The Canadian Press

Canada Mortgage and Housing Corp. says the level of home construction will continue to trend downwards in the last quarter of this year and into 2011.

The federal Crown corporation says the reduced activity will be more in line with the rate of Canada’s population growth than in the past decade when low interest rates helped stimulate pentup demand for home sales.

It’s currently estimating about 186,200 housing starts this year.

CMHC estimates that construction will begin next year on between 148,000 and 202,300 homes, or about 174,800 units at the midpoint.

As for existing homes, the CMHC expects about 438,400 units will be sold next year through the Multiple Listing Service — about 2,000 fewer than this year.