COVID-19 has had a huge impact on the global and local economy, but it cannot derail Canada’s real estate markets, which are expected to experience rapid home price growth once the outbreak is over, several forecasts have predicted recent.
Despite a decline in sales this year, the average home price in Canada will be 6.1% higher at the end of the year than it was a year earlier, TD Bank said in a released forecast end of November.
Many people are reluctant to put their homes on the market – either because of concerns about the virus or because of concerns about the health of the market. Nevertheless, TD’s forecast makes some big assumptions. One of them is that “the provinces are taking interim measures to reopen their economies within the next month”.
Plus, the country won’t experience a sudden rush of people to sell their homes quickly, thanks to the banks’ new mortgage deferral programs!
While there is a “wide range of outcomes” possible in these uncertain times, “it is highly unlikely that we will see a significant drop in house prices,” explained Peter Norman, vice president and economist chief of the Altus Group, in a report in the Huffington Post.
He predicts price growth in the range of 5-10% for this year, as there will be many buyers who will be “ready to buy” once the close orders are lifted and social distancing rules begin. to be relaxed.
Overall, the future of the housing market remains bright, although there may be some setbacks over the next three months, until the crisis is totally behind us.