Bravo festival condos for sale. House prices in Canada may fall by 7% next year? Moody’s, a well-known international financial analysis company, has released an analysis and forecast of the trend of the Canadian housing market in 2021.Please Visit: Bravo festival condos for sale to Get Your VVIP Registration Today!
Forecasts show that house prices across Canada could plunge by about 7% in 2021 as the job market slumps, curbing the red-hot real estate market.
In addition to unemployment, housing prices in Vancouver and Toronto in Canada have exceeded the affordability of citizens, and there has also been a “crisis” of oversupply in the property markets of Calgary and Edmonton.
“the housing market will not be able to get rid of the negative impact of the employment recession in the future, and even if the central bank cuts interest rates, it will not be enough to save the Canadian housing market.” The report predicts.
However, the forecast does not elaborate on how the forecast data were obtained, except that prices of single-family homes and apartments will fall by 6.7% and 6.5% respectively in 2021.
The Moody’s report came after the Canadian Real Estate Association (Canada Real Estate Association) said home sales hit records in July and August because of falling mortgage rates in Canada.
Many optimists expect this record growth in housing sales to continue.
In September, a survey by ReMax real estate showed that average house prices in Canada were likely to rise 4.6 per cent by the end of 2020. CMHC agrees with this data.
But Moody’s predicts that the real estate industry will lose momentum in the first half of 2021.
Canadian Mortgage and Housing Corporation (Canada Mortgage and Housing Corp.). Economist Bob Dugan also predicted earlier this week that house prices in Canada will fall in the future.
Although according to Moody’s forecast model, house prices will fall in every region of Canada, the impact will be uneven and will be more beneficial to cities where housing prices are affordable.
The decline in immigration will also affect Canada’s housing market, and with rising prices on the outskirts of Toronto, such as Mississauga, buyers looking for more space may look to the Oshawa area around Ontario.
Moody’s also predicts that the housing market in the Canadian prairie will be particularly hard hit because government support policies are fading, mortgage extensions are coming to an end, and consumer debt and unemployment are being battled. Bankruptcy filings and bankruptcy filings in the grasslands have been on the rise since the end of 2018.
“while demand for single-family homes with plenty of space and large storerooms is likely to rise, demand for smaller apartments and condos is also likely to rise, given the difficulties many families will face in saving down payments.” The report shows.
However, if the COVID-19 vaccine is available in the second half of 2021, the report shows that house prices will rebound in 2022.
“the second round of decline in labor and financial markets triggered by a new wave of COVID-19 this autumn and winter is likely to stimulate a bigger-than-expected decline in house prices.”