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2011 housing drop seen less severe

<br><br> The Canadian Real Estate Association has raised its sales forecast for the rest of the year, calling for a smaller decline than it originally expected as low interest rates keep buyers in the market. The association now expects sales to fall by 1.6 per cent in 2011, compared to its November call for a drop of almost 9 per cent. Prices are also expected to do better than forecast, with a gain of 1.3 per cent instead of a slight decline. <br><br>

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The Canadian Real Estate Association has raised its sales forecast for the rest of the year, calling for a smaller decline than it originally expected as low interest rates keep buyers in the market. The association now expects sales to fall by 1.6 per cent in 2011, compared to its November call for a drop of almost 9 per cent. Prices are also expected to do better than forecast, with a gain of 1.3 per cent instead of a slight decline.