Housing market has averted worst-case scenario but prices still likely to fall: CMHC CEO - BNN Bloomberg

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The head of the CMHC says he expects Canadian house prices to drop nearly 10 per cent, on average, due to the economic shocks brought on by the pandemic

In an interview with BNN Bloomberg’s Amanda Lang broadcast Thursday, Siddall said that while the most bearish case for home prices doesn’t seem likely to come to pass, he still sees a price decline by just shy of 10 per cent due to the economic shocks of the COVID-19 pandemic.

“The number of people on income support, the number of people on mortgage deferral, means that at some point, probably early next year through the middle part of next year, there will probably be a negative adjustment in house prices,” he said. “In general, we think high single-digit [percentage] negative adjustment is what we can expect in most markets.”

The CMHC had released a forecast in May warning average home prices in the country could plunge as much as 18 per cent in a worst-case scenario due to the pandemic and its impact on economic growth, employment and lost income. Siddall told BNN Bloomberg various income-support measures implemented by the federal government has helped the Canadian housing market avoid that worst-case scenario.

 

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Dont worry tho people, even if that should happen, they'll still make a concerted effort to make sure our cost of living continues to go up...

He needs to revisit and review his numbers, low ball and hiding the truth isn't helping Canadians. Canadians must demanding full transparency!

About time as foriegn investors saturating our real estate market have ruined home ownership for any average income family looking to purchase a home in the lower mainland 👍

Fear mongering. Prices are up in Hamilton/Burlinton. Our Covid numbers are excellent.

So really it's more like 25%

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