Harbourwalk Condos floor plan.The epidemic hit Canadian house prices more than expected. COVID-19 ‘s outbreak, a heavy blow to the Canadian real estate market, even exceeded the expectations of industry experts.Please Visit: Harbourwalk Condos floor plan to Get Your VVIP Registration Today!
Officials from the Canadian Mortgage and Housing Corporation (Canada Mortgage and Housing Corp,CMHC) admit that house prices in the country may not return to pre-recession levels until the end of 2022 at the earliest.
According to the local English-language media CP24, COVID-19 ‘s outbreak has led provincial governments to introduce very strict quarantine measures. Some routine businesses in the real estate industry, such as open house, have to be stopped, which directly leads to a “freeze” in the national real estate market.
In the greater Toronto area, home sales plunged 67% in April, while average house prices fell 11.8% from march. Rental market: although rents in the Greater Toronto area are still high compared with many Canadian cities, they have also declined. The average one-bedroom rent fell 2.7% to 2107 yuan, while the average two-bedroom rent fell 4.1% to 2705 yuan.
The situation in greater Vancouver is not much better: the benchmark index of composite house prices (composite price benchmark index) rose 0.2 per cent in April from March, but sales hit their lowest level in nearly 40 years and 62.7 per cent below the 10-year average.
CMHC CEO Sider (Evan Siddall) admitted that COVID-19 ‘s impact on the domestic housing market has exceeded their expectations.
He revealed that in January this year, CMHC experts had predicted the impact of the pandemic on the real estate industry. They regularly conduct stress tests on the market, but these tests are prepared for normal conditions, and the epidemic is so severe that past experience is “ineffective”.
CMHC, the official federal agency that provides mortgage insurance for lenders and funds public housing projects, has to make predictions about the future, so they are rushing to revise their forecasts based on spring and summer experience.