A real estate sold sign hangs in front of a west-end Toronto property Friday, Nov. 4, 2016. THE CANADIAN PRESS/Graeme Roy

Home prices won’t recover from COVID for at least 2 years, CMHC says

Preliminary figures indicate that about one in 10 Canadian home owners have deferred mortgage payments

Canada Mortgage and Housing Corp. expects a prolonged period of weak real estate prices because of the COVID-19 pandemic, with a return to pre-recession pricing more than two years away.

The estimate by senior officials of the Crown corporation came with the release of its annual financial report.

CMHC chief economist Bob Dugan said the current best-case would be a return to pre-recession housing prices in late 2022.

Other officials said the impact of the COVID-19 pandemic and economic downturn will be bigger than the worst-case scenarios forecast in January.

Chief executive Evan Siddall said CMHC is revising its estimates.

He says preliminary figures indicate that about one in 10 Canadian home owners have deferred mortgage payments, with a higher rate in parts of the country that rely heavily on the oil and gas industry.

Siddall says federal emergency legislation will ensure the agency has the financial resources it requires to perform its functions which, for the first time, includes assisting small businesses through a rent-assistance program announced last month.

READ MORE: It could take 3 years for stock market to recover, says B.C. economist

READ MORE: Keep ‘pandemic bubbles’ small, top doctor urges as B.C. prepares to loosen rules

The Canadian Press


Like us on Facebook and follow us on Twitter.

CoronavirusReal estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

City of Rossland delays decision on five-year waste disposal contract to company

Council decided not to award the contract to Alpine Group on June 1

First Energy Metals set to start gold exploration work in the West Kootenay

The work will be conducted at two of its sites near Nakusp and Nelson

Nelson skateboarders charged with assaulting Trail police officer

Incident happened at the skate park in Trail

Flooding: Why the RDCK ordered hundreds of properties evacuated

All evacuation orders have now been rescinded

City of Rossland introduces new fees for some permits and services

City adopted bylaw to introduce the fees on June 1

If Trudeau won’t stand up to Trump, how will regular people: Singh

Trudeau did not directly answer a question about Trump’s actions amid protests

VIDEO: Internal investigation into aggressive arrest by Kelowna Mountie

A video allegedly shows a Kelowna Mountie striking a man several times

22 new COVID-19 test-positives, one death following days of low case counts in B.C.

Health officials urged British Columbians to ‘stand together while staying apart’

John Horgan says COVID-19 restrictions won’t be eased regionally

B.C. Liberals urge ‘tailored’ response based on infections

Feds get failing grade for lack of action plan on anniversary of MMIWG report

‘Instead of a National Action Plan, we have been left with a Lack-of-Action Plan’

B.C. ranchers, lodge operators say Indigenous land title shuts them out

Tsilhqot’in jurisdiction affects grazing, access to private property

As two B.C. offices see outbreaks, Dr. Henry warns tests don’t replace other measures

Physical distancing, PPE and sanitizing remain key to reduce COVID-19 spread

Greater Victoria drive-thru window smashed after man receives burger without mustard

Greater Victoria Wendy’s staff call police after man allegedly rips Plexiglas barrier off window

Most Read