The strength of the Canadian real estate market has continued to prove itself time and time again during the pandemic. While we’re not out of the woods yet, we are expecting continued growth for the duration of 2020. With an active market for the foreseeable future and balanced conditions at the national level into 2021, this is great news for Canadians.
So why all the fear mongering by the CMHC?
The Canada Mortgage and Housing Corporation’s Chief Economist Bob Dugan, told reporters at a press conference recently that the agency stands by its previous forecast in May that warned of a decline in Canadian house prices between nine and 18%.
“I’m not convinced that we have a sustainable basis for housing demand in the economic disturbance that’s going on related to COVID-19,” Dugan said. “That’s why I say I stand by the forecasts.”
We expressed our concerns over CMHC’s predictions in the spring, and Dugan’s latest statement continues to raise eyebrows. Ours, and other industry insiders as well, as the Canadian housing market stays on its upward course.
While I can appreciate some of the reasoning that went into CMHC’s prediction, especially in the spring when so much was still unknown. The market data doesn’t support such a steep price decline. Especially with the two largest real estate markets of Toronto and Vancouver continuing their upward momentum. The Prairies are facing different circumstances and challenges due to the resources sector, however Ontario and BC are expected to offset slower activity in Saskatchewan and Alberta.
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