Realtors and market observers say Canada Mortgage Housing Corporation’s prediction that home prices could plunge 18 per cent year in a year’s time, don’t reflect the resiliency of the market and rising activity.
“CMHC doesn’t seem to understand the sheer number of sellers that would have to accept this kind of price reduction, in order for average housing prices to plummet to this degree in such a short time span,” Christopher Alexander, executive vice president and regional director, for Ontario and Atlantic Canada at Re/Max, said in a blog. “Sellers simply won’t accept that kind of discount on their listings. A statement of this nature is panic-inducing and irresponsible.”
Last week, Evan Siddall, chief executive officer of CMHC, told a parliamentary committee that the corporation is forecasting a decline in average house prices of 9-18 per cent in the coming 12 months. “The resulting combination of higher mortgage debt, declining house prices and increased unemployment is cause for concern for Canada’s longer-term financial stability.”