Economic uncertainty is said to be the reason behind a predicted decline in housing starts for the prairies for the first quarter of 2009.

The prediction from Canada Mortgage and Housing Corporation comes in their Housing Market Outlook released yesterday.

Total housing starts in Saskachewan for 2008 hit a record high of 6,828, while 2009 is expected to see a decline to 4,150.

C-M-H-C says the 49 % increase in building activity in 2007, followed by a 13 % increase in 2008 has led to a rise in the supply of single-detached houses.

The corporation is projecting an average price for houses at between $205,000.00 and $228,000.00 in the province.