The Canadian Mortgage Housing Corporation’s latest Housing Market Outlook doesn’t expect to see housing sales and prices rebound to pre-COVID-19 levels until at least 2022. These findings are largely attributed to significant increases in unemployment across major Canadian cities.
CMHC’s chief economist said in the agency’s report release that “ short-term uncertainty will lead to severe declines in sales activity and in new construction.” The report focused on six major urban centres and goes into depth on the economic effects the housing market is expected to face post-COVID-19.
The uncertainty of home buyers and lenders headed into the rebound will be significant but confidence is expected to grow slowly as Canada returns to normalcy.
We have included below the breakdown of CMHC’s housing market performance forecast for end of 2021.
- Average price in Q1 2020 – $892,238
- 2021 forecast: +2% (best case) / -11% (worst case)
- Average price in Q1 2020 – $962,184
- 2021 forecast: -7% (best case) / -15% (worst case)
- Average price in Q1 2020 – $438,194
- 2021 forecast: -8% (best case) / -23% (worst case
- Average price in Q1 2020 – $359,072
- 2021 forecast: -9% (best case) / -24% (worst case
- Average price in Q1 2020 – $498,000
- Q2021 forecast: +2% (best case) / -14% (worst case)
- Average price in Q1 2020 – $444,748
- 2021 forecast: +2% (best case) / -9% (worst case