Housing prices projected to continue to decline
The Canada Mortgage and Housing Corporation (CMHC) projects the demand for housing will continue to decline through 2020.
According to a report, the Housing Market Outlook - Special Edition, released by the CMHC, housing starts, sales, and prices for Canada’s major housing markets are likely to remain below their pre-COVID-19 levels for the foreseeable future.
This is largely due to income declines, uncertainty over the future trajectory of the virus and employment, and income conditions. As a result, the precise timing and speed of the recovery in major markets is highly uncertain and will vary considerably.
“COVD-19 has had unprecedented impacts on Canada’s urban centres. Short-term uncertainty will lead to severe declines in sales activity and in new construction,” Aled ab Iorwerth, deputy chief economist for the CMHC, said in a news release.
“As the virus is overcome, cities will bounce back but there is significant uncertainty with respect to the path and timing of the recovery," he continued.
According to the findings, housing prices are projected to drop due to a drop in demand for the market.
Additionally, sales and construction have declined and will continue to decline across Canada's major markets, while resale activity and average house prices will fall across all markets. However, the rate and magnitude of declines of both will vary.
Further, the rental market is projected to see an increase in rental vacancies due to a decline in immigration as well as a surplus of buildings under construction.
- Housing market expected to experience declines throughout rest of 2020 in Mississauga
- Good news for the housing market in Mississauga
- Housing market ‘moderately’ vulnerable amid potential overvaluation of homes: CMHC
- Mississauga rent prices projected to continue to decline in December: report
- Prices Continue to Rise in Mississauga's Housing Market
- Thirteen tickets won a massive lottery prize in Ontario but no jackpot
- UPDATE: Brampton teen drowns in Halton Hills area
- Mississauga enters first stage of reopening as COVID-19 restrictions loosen across Ontario
- Mississauga, Brampton vaccine clinics taking place this weekend
- Here's what's open in Mississauga under first phase of reopening