Cielo Condos . House prices may plummet by 5% in 2021! After a complete shutdown of economic activity, the national real estate market has found a different direction of development. Vancouver land and housing sales have exceeded 2018 and 2019, and consumer market confidence has greatly increased.Please Visit: Cielo Condos to Get Your VVIP Registration Today!
Although many economists predict that the heat of the Canadian real estate market will continue until 2021, the latest forecast report of Fitch rating (Fitch Ratings) points out that house prices across Canada will plunge by 5% next year, falling from their current highs!
On Wednesday (9th), Fitch International Ratings released the latest forecast of the Canadian housing market, analyst Susan Horstman (SusanHosterman) said, “the current situation of the Canadian housing market is improving, but affected by the COVID-19 epidemic, large-scale unemployment, the decline of people’s financial affordability and other factors will lead to a decline in demand for housing to a certain extent, and the current fever is difficult to sustain.”
In addition to analyzing the overall housing market, the report also publishes specific data.
During the outbreak, the Canadian Federal Mortgage and Housing Corporation (CMHC) allowed lenders to provide six-month deferred payments, and thousands of Canadians applied for the deferred service.
On the one hand, this policy has greatly reduced the burden on people, but on the other hand, it has caused many experts to worry that once the “debt holiday” ends, tens of millions of Canadians will face debt-ridden difficulties or curb the overall economic recovery.
As many as 16 per cent of mortgage holders are nearing the end of their six-month “debt holiday” and must be repaid in 2021, according to the report. At present, the epidemic continues to heat up across the country, and even if the unemployment rate drops slowly, it is still higher than the pre-epidemic average. Between 2015 and 2019, Canada’s national unemployment rate averaged 6.3 per cent.
Fitch expects mortgage delinquency rates to rise to 0.35 per cent and 0.5 per cent in 2021.
With the end of the extended grace period for mortgage loans and the termination of the Canadian Emergency Relief (CERB), the Canadian housing market will face more challenges in 20121. After the mortgage extension ends, people still have a period of 90 days before they switch to delinquency, after which they will lose their mortgage.