According to the Canada Mortgage and Housing Corporation's Housing Market Outlook Report, released Tuesday, resale house prices in Manitoba will climb by five per cent this year, and by a further three per cent in 2011.

Carol Frketich, CMHC's regional economist for B. C., said in an interview, "The outlook for housing starts in B. C. is similar to the national trend in terms of the forecast increase of housing construction".

"The difference is, we'll see a stronger rebound in housing starts. For B. C., we're forecasting a 37-per-cent increase. Nationally, it's about a 15-percent increase", said Frketich.

According to the Federal Agency, "A second-half rebound last year in demand for both new and existing homes set the stage for continued growth through this year and 2011".

The agency notes that the recovery has been particularly strong on the resale side of the market, as buyers scramble to take advantage of low mortgage rates and improved affordability.

Frketich stated, "B. C. saw a sharper downturn and we'll see a rebound of similar magnitude," adding, "The demand for new home construction will benefit from an improved economy and labour market and lower interest rates".

Nationally, rising housing starts are expected to put a lid on home prices this year after their 19-per-cent surge in 2009, CMHC said.