Canada Mortgage and Housing is feeling optimistic about the economy in Western Canada, predicting housing starts will remain strong for the remainder of this year and into 2013.

In its latest forecast, CMHC pegs starts for this year at just over 47,000, up almost 9,000  units from 2011.

“We’re actually looking to see housing markets improve as we go through this year and next year,” says CMHC Senior Market Analyst Richard Cho who notes Alberta’s vibrant economy and strong job creation is helping drive activity. “We’re looking to see more sales take place with some modest price growth as well as more new homes being started.”

Cho adds that single-family units are currently in vogue among builders.

“As we move into 2013, we do see a further increase on the single side,” he says, “but a modest decline on the multi-family segment of the market.”

The strong economic activity, relative to other parts of the country, is also pushing up the value of existing homes.

“For this year, we’re looking at about two-and-a-half per cent,” Cho says, referring to increases in local housing prices. “And then another increase, about 2.7 per cent, in 2013.”

The average price of a home in Calgary is currently pegged at $413,000 which is about $60,000 above the provincial average.

Home construction numbers in the city have almost doubled in the past three years from just over 6,300 in 2009 to 12,000 this year.