The CMHC Expects Property Prices to Fall Significantly in 2020
In a special edition of the Housing Market Outlook, the Canada Mortgage and Housing Corporation (CMHC) presents its forecast for how the Canadian real estate market will evolve in the wake of the health crisis.
The CMHC views the pandemic as a period of unprecedented uncertainty and therefore anticipates a significant decline in key real estate market indicators. According to the study, housing starts will drop in 2020, then rebound in 2021. Quebec and Ontario will be more affected than the other provinces in this regard due to the pause in the construction sector during the crisis.
Moreover, the CMHC expects the average price of existing properties to drop by 9 to 18 per cent across the country compared to pre-COVID-19 levels. However, the organization points out that some provinces will be more negatively affected than others, including Alberta and Saskatchewan, due to the economic impact of the drop in oil prices.