Home prices in some of Canada’s major urban centres could decline by as much as 12 per cent over the next 18 months before recovering in 2022, according to a new report from the Canada Mortgage and Housing Corp., the country’s federal housing agency.
The report comes just weeks after CMHC CEO Evan Siddall predicted up to an 18 per cent decline in average home prices across the country over the next 12 months, a data point which prompted a skeptical realtor community to characterize the forecast as “panic inducing.”
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On Tuesday, CMHC’s deputy chief economist Aled ab Iorweth cautioned that any predictions the agency makes over the next few months will be subject to a high degree of volatility because of coronavirus-related uncertainty.
“We do not know, for example if there will be a second wave later this year,” Iorwerth said on a call with the media as the agency released its report on future housing trends in the key markets of Toronto, Vancouver, Montreal, Ottawa, Edmonton and Calgary. “It is also too early to say what impact (the virus) will have on the rental market, for example. We know that the decline in immigration and inter-provincial mobility will lower demand for rentals.”