Canada Mortgage and Housing Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2008) - Preliminary figures from Canada Mortgage and Housing Corporation (CMHC) show that in spite of a slowdown in home building in September, five per cent more foundations were poured during the first three quarters of 2008, compared to the same period last year.

"Substantial increases in multiple unit (duplex, townhome and apartment) home building in Coquitlam, Surrey and Vancouver City are behind the increase in home starts," said Robyn Adamache, senior market analyst with CMHC. "Employment and population growth will support demand for new homes. However, consumer uncertainty and high home prices will temper the effects of these positive factors. A well-supplied resale market will also draw some demand away from new housing."

Homebuilding in neighbouring Abbotsford surpassed last year's activity, both on a monthly and a year-to-date basis. Home starts in the first nine months of the year were up by nearly one-third, with growth on the multiple unit side making up for a slowdown in single detached construction.

Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1-800-668-2642.

To view the graph and tables accompanying this release please click on the following link: http://media3.marketwire.com/docs/cmhc107.pdf