CMHC: HOUSING TO FEEL EFFECTS OF COVID-19 UNTIL 2022
May 27, 2020
By Bob Komsic
In a special outlook, federal housing agency Canada Mortgage and Housing Corporation says COVID-19 will lead to a ”historic recession in 2020,” that will lead to ”significant falls in indicators of the housing market.”
The pandemic hit just as the spring home-buying season was beginning.
Sales fell 15% in March before dropping even further the following month to their worst April since 1984.
Gazing into its crystal ball, CMHC forecasts prices will fall by between 9 and 18% from pre-COVID levels, before recovering slightly early next year, but are not expected to fully bounce back before at least 2022.
Sales may decline by 19 to 29% before starting to recover late this year.
Home building does not escape unscathed with starts expected to see declines of between 50 to 75% this year, before starting to rebound in 2021.