CMHC says home price and sales growth to moderate but stay elevated

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April 21, 20221 day ago1 minute read 7 comments Growth in home sales, prices and construction will moderate from pandemic highs this year but remain elevated, CMHC says. Growth in home sales, prices and construction will moderate from pandemic highs this year but remain elevated, CMHC says. PHOTO BY ASHLEY FRASER/POSTMEDIA

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Growth in home sales, prices and construction will moderate this year from pandemic highs but remain high, supported by a strong economy, strong labor market and strong immigration, Canada’s Housing Agency said on Thursday.

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“In 2023 and 2024, price growth will converge closer to the long-term average, with sales and launch activity expected to remain above the 5- and 10-year averages,” said Bob Dugan, chief economist at Canada Mortgage and Housing Corp . (CMHC). in the outlook report.

“Price growth will likely continue to be led by low-priced markets, including Vancouver, Toronto and Montreal.”

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The CMHC outlook report comes amid signs of a slowdown from a hot pandemic market that has seen the median cost of a home rise more than 50 percent over the past two years.

In March, the average home price fell 2.5 percent from February and sales fell 5.4 percent, Canadian Real Estate Association data showed on Tuesday.

  1. RBC now sees home sales down 13 per cent this year and another 14 per cent in 2023.

    House prices will peak this spring after rising interest rates proved a game changer, RBC predicts

  2. National home sales volume was down in March, falling more than 5 percent after a short-lived spike in February.  ASHLEY FRASER, POSTAL MEDIA

    Canada’s hot housing market cools as prices fall and sales fall in March

  3. Does blind bidding really drive up real estate prices?

    Why Canadians Are Losing Confidence in the Housing Market

Some expect even deeper falls as the Bank of Canada hikes interest rates to deal with rising inflation.

Expectations of a more aggressive rate path prompted RBC to lower its housing forecasts this week. It now envisages home sales falling by 13 percent this year and another 14 percent in 2023.

RBC expects prices to peak this spring and then moderate slightly for the rest of the year.

The CMHC said housing affordability will continue to fall as house price growth outpaces incomes.

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