The Canadian Press – May 6, 2021 / 7:44 p.m. | History: 333134
The 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 that sales will be slowed by rising mortgage rates and the high prices seen in existing home markets.
He says 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 rental demand will rebound as immigration resumes, but vacancy rates are likely to remain high.
The agency warns that these forecasts remain subject to significant risks as the economic recovery in major markets is highly uncertain and a slower-than-expected deployment of vaccines would prolong the pandemic and cause mortgage rates to rise.
CMHC’s forecast for 2021 comes as real estate markets like Toronto and Montreal see the pace of sales slow from the start of the year, but prices remain high in both markets.