A real estate sign is shown in Victoria, B.C., on Friday, June 1, 2018. THE CANADIAN PRESS/Chad Hipolito

A real estate sign is shown in Victoria, B.C., on Friday, June 1, 2018. THE CANADIAN PRESS/Chad Hipolito

CMHC predicts COVID-19 immunity will moderate pace of home sales, prices by 2023

The agency also predicts that rental demand will rebound as immigration recovers

Canada Mortgage and Housing Corporation says economic conditions could return to pre-pandemic levels and moderate the pace of home sales by the end of 2023 if broad immunity to COVID-19 is achieved this year.

The federal housing agency predicts sales will be slowed by increasing mortgage rates and high prices seen in existing-home markets.

It says that slower sales growth will help moderate the pace of price growth and expects housing starts to stabilize by the end of 2023.

The agency also predicts that rental demand will rebound as immigration recovers, but vacancy rates will likely remain elevated.

The agency warns that these predictions remain subject to significant risk because the economic recovery in major markets is highly uncertain and a slower-than-expected vaccine rollout would prolong the pandemic and lead to higher mortgage rates.

CMHC’s 2021 predictions come as real estate markets like Toronto and Montreal are seeing the pace of sales slow when compared with earlier this year, but prices remain high in both markets.

The Canadian Press


Like us on Facebook and follow us on Twitter.

CoronavirusReal estate

Just Posted

(File photo)
Crime report: Crooks busy pilfering bikes throughout Parksville Qualicum Beach area

Thefts among 295 complaints Oceanside RCMP deal with in one-week period

The Arrowsmith Search and Rescue logo on the back of a service vehicle. (Mandy Moraes photo)
Parksville and Qualicum Beach provide letters of support for Arrowsmith Search and Rescue

ASAR asks for increase in funding, one-time capital grant and for RDN to buy out current facility

The proposed running track upgrade at Ballenas Secondary is now on course. (PQB News file photo)
RDN: Parksville track upgrade project gains some traction

Staff recommends board approve $204,000 funding

The total earnings of Town of Qualicum Beach council and mayor amounted to $186,649 in 2020, including expenses. (Town of Qualicum Beach photo)
Nine Qualicum Beach town employees earned more than $100K in 2020

Mayor and council received earnings totalling $186,649

(PQB News file photo)
Fireworks report highlights enforcement challenges for Regional District of Nanaimo

Director: ‘I just think it’s wasting everybody’s time’

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Highway notices like this come down effective June 14. Public health restrictions on non-essential travel and commercial operation have hit local businesses in every corner of B.C. (B.C. government)
Province-wide travel back on in B.C.’s COVID-19 restart plan

Gathering changes include up to 50 people for outdoor events

Calgary Stampeders’ Jerome Messam leaps over a tackle during second half CFL western semifinal football action in Calgary, Sunday, Nov. 15, 2015.THE CANADIAN PRESS/Jeff McIntosh
CFL football will be played this summer in Canada

Governors vote unanimously in favour to start the ‘21 campaign on Aug. 5

Citizenship Minister Marco Mendicino holds a press conference in Ottawa on Thursday, Nov. 12, 2020. The federal government is announcing that Indigenous people can now apply to reclaim their names on passports and other government documents. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous people can now reclaim traditional names on their passports and other ID

Announcement applies to all individuals of First Nations, Inuit and Métis background

Harvesting hay in the Fraser Valley. (Tom Fletcher/Black Press)
COVID-19: B.C. waives farm income requirement for a second year

Property owners don’t need minimum income for 2022 taxes

A view of the outside of St. Andrews Roman Catholic Cathedral on Victoria’s Blanshard Street. (Don Denton/News staff)
Vancouver Island bishop apologizes for church’s role in residential schools

Bishop Gary Gordon of the Diocese of Victoria voices commitment to healing and reconciliation

Cruise ship passengers arrive at Juneau, Alaska in 2018. Cruise lines have begun booking passengers for trips from Seattle to Alaska as early as this July, bypassing B.C. ports that are not allowed to have visitors until March 2022 under a Canadian COVID-19 restrictions. (Michael Penn/Juneau Empire)
B.C. doesn’t depend on U.S. law to attract cruise ships, Horgan says

Provinces to get update next week on Canada’s border closure

This undated photo provided by Girl Scouts of New Mexico Trails shows a scout donating cookies to firefighters in Rio Rancho, New Mexico, as part of the Hometown Heroes program. As the coronavirus pandemic wore into the spring selling season, many Girl Scout troops nixed their traditional cookie booths for safety reasons. That resulted in millions of boxes of unsold cookies. (Girl Scouts of New Mexico Trails via AP)
Thinner Mints: Girl Scouts have millions of unsold cookies

Since majority of cookies are sold in-person, pandemic made the shortfall expected

Most Read