m city 5 condos floor plans.Canadian housing market prices may fall by 10%. Home sales, prices and new housing starts in Canada will plummet this year and continue for at least a year, with Canada’s western provinces hardest hit.Please Visit: m city 5 condos floor plans to Get Your VVIP Registration Today!
Moody’s economist Abhilasha Singh said in the Canadian housing market outlook report (Housing Market Outlook) that the COVID-19 epidemic and the collapse in oil prices will bring a storm to home sales and housing construction this year. The report points out that due to the economic composition of western Canada, this negative impact will show up sharply.
British Columbia is the most affected by tourism and trade, while prairie provinces, which are already dealing with weak energy demand, are most vulnerable to plummeting oil prices, he said.
Moody’s predicts that national GDP will fall 15 per cent in the second quarter of 2020 compared with the same period last year, while the unemployment rate will double to 10 per cent. This will lead to a decline in housing starts to 145000 units by the end of 2020, down from 210000 at the beginning of 2020.
In an effort to reduce borrowing costs, the Bank of Canada cut its benchmark interest rate to 0.25 per cent in March and the term mortgage rate below 3 per cent over the next five years.
But Moody’s warned that even with these “unconventional measures” in Canada, home buyers with hidden worries of unemployment had better wait and see.
“even lower interest rates are not enough to save the [Canadian] housing market,” Singh said. ” Moody’s expects Canadian house prices to experience a fall of about 10 per cent from peak to trough. House prices are expected to rebound as the outlook begins to improve in early 2021.
Moody’s predicts that house prices in Dawen will fall 4.2% this year, and will continue to fall 6% next year and 2% in 2022, and will begin to recover moderately in three years’ time.
Calgary, where home sales have plummeted 63% this year compared with the same period last year, is likely to see the biggest drop in house prices in Canada.
Moody’s predicts that house prices in Calgary will fall 8.3% this year and 8.8% in 2021, with double-digit growth expected by 2023.
Point2 Homes recently conducted a survey of real estate agents and industry insiders across the country on how much impact the epidemic has caused and what expectations industry insiders have for changes in the housing market after the epidemic. According to the survey, 86 per cent of brokers said that buyer interest had declined sharply, with 41 per cent of them saying that most buyers had stopped looking at homes, while only 2 per cent of brokers said there had been only a slight decline in interest.
According to the survey, 41 per cent of brokers said that buyers’ interest in buying houses had waned and they were worried that their business would be affected; 34 per cent said they were very worried about the whole standstill.
Only 10% of the respondents estimated that the business loss caused by the epidemic was less than 25%; most of the respondents were not optimistic; 62% said the business had shrunk by at least half; nearly 1% of the respondents said that the epidemic had caused the business to shrink by more than 75%.
The survey shows that although the impact of the epidemic is great, most brokers are still optimistic about the outlook, believing that the impact is only temporary and will not last long. 80% think the market will return to normal within one year; 51% think the market will return to normal within half a year.