B.C. housing starts are expected to buck the national trend and grow 7.1 per cent in 2012, according to a report released Friday by Canada Mortgage and Housing Corp.

“Overall growth in construction levels will be supported by population-driven housing demand and consumers will benefit from relatively low mortgage interest rates,” the national housing agency's fourth quarter Housing Market Outlook said.

Nationally, housing starts are forecast to stabilize into 2012.

The report said that single-detached starts in B.C. picked up pace in the second and third quarters of 2011, but will remain below their 10-year average level as a well-supplied existing home market holds back starts.

But job creation and population growth will boost single-detached starts in 2012, with 10,500 homes forecast to get underway in 2012 compared to 8,800 in 2011.

Multi-family home starts are forecast to reach 18,000 next year, up from the 17,800 units expected for 2011, a reflection of demographic trends such as an aging population and affordability concerns and transportation considerations, as condominiums tend to be cheaper and located near major transportation routes.

The report said the pace of resales will pick up gradually during 2012, with sales of existing homes forecast to increase to 81,900 transactions in 2012, from a projected 77,200 transactions in 2011.

Resale market conditions are expected to remain balanced next year, with the average price forecast to be $564,900 in 2012, down one per cent from the 2011 projected price of $570,500.

Nationally, housing starts are forecast to be about 191,000 units in 2011, dropping slightly to 187,000 units in 2012.

Existing home sales will be about 450,000 units this year and about 459,000 units in 2012.

The average price is forecast to be about $364,000 in 2011, and $368,000 in 2012.