(AlbertaIndex, March 28, Friday) --- Supported by strong fundamentals, Canada’s housing market is not likely to be dragged down by the subprime mortgage and credit troubles in the US, said Scotiabank.

    While the struggling US economy will inevitably weigh on Canada, housing sales numbers and prices should still gain in 2008, albeit at a more moderate pace than in past years when home prices soared by 65% from 1998 to 2007.

Housing starts are forecast at some 204,000 units this, down from 228,343 in 2007. On the resale side, price increases are expected to be in the single digits.

Western Canada will lead in housing price appreciation, driven by its booming oil and resources sectors.

Canada’s underlying domestic fundamentals are still encouraging and broadly supportive of the real estate market. However, the negative US outlook in the wake of its ongoing financial troubles could restrain Canada’s overall housing performance, said Aron Gampel, deputy chief economist of Canada’s Scotiabank.

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