A real estate sold sign hangs in front of a west-end Toronto property Friday, Nov. 4, 2016. THE CANADIAN PRESS/Graeme Roy

Home prices won’t recover from COVID for at least 2 years, CMHC says

Preliminary figures indicate that about one in 10 Canadian home owners have deferred mortgage payments

Canada Mortgage and Housing Corp. expects a prolonged period of weak real estate prices because of the COVID-19 pandemic, with a return to pre-recession pricing more than two years away.

The estimate by senior officials of the Crown corporation came with the release of its annual financial report.

CMHC chief economist Bob Dugan said the current best-case would be a return to pre-recession housing prices in late 2022.

Other officials said the impact of the COVID-19 pandemic and economic downturn will be bigger than the worst-case scenarios forecast in January.

Chief executive Evan Siddall said CMHC is revising its estimates.

He says preliminary figures indicate that about one in 10 Canadian home owners have deferred mortgage payments, with a higher rate in parts of the country that rely heavily on the oil and gas industry.

Siddall says federal emergency legislation will ensure the agency has the financial resources it requires to perform its functions which, for the first time, includes assisting small businesses through a rent-assistance program announced last month.

READ MORE: It could take 3 years for stock market to recover, says B.C. economist

READ MORE: Keep ‘pandemic bubbles’ small, top doctor urges as B.C. prepares to loosen rules

The Canadian Press


Like us on Facebook and follow us on Twitter.

CoronavirusReal estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Indoor pools in RDCK to reopen Oct. 13

Pools have been closed by the pandemic since March 16

Creston’s Sunset Seed Company closes for good

“It’s time for me to retire, simply put,” said Tom Heal, who became the manager of the family business in 2005

Column: One person can make a difference

“While it’s sad for many to see the Sunset Seed Company close their doors for good, it dawned on me that several were going to miss Tom and his aura more than the goods that he sold”

Nine new COVID-19 cases announced in Interior Health region

The total number of cases since the pandemic started is now at 531 for the region

Terry Tiessen to run as Libertarian candidate in Nelson-Creston

Tiessen previously ran in the 2019 federal election

B.C.’s top doctor encourages Halloween costumes to include masks

Dr. Bonnie Henry will soon be releasing guidelines on how to safely trick-or-treat this Halloween

Federal child-care plan could help Canada rebound from COVID-induced economic crisis: prof

A $2 billion investment this year could help parents during second wave of pandemic

Action demanded over death of First Nations youth in Abbotsford group home

Family and Indigenous organizations push for thorough investigation

B.C. nurses report rise in depression, anxiety, exhaustion due to pandemic

A new UBC study looks into how the COVID-19 response has impacted frontline nurses

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Horgan frustrated as Transport Canada mandate for BC Ferry riders returns

Transport Canada reinstates rule that bans passengers from lower decks

Reincarnation, baby! Music-making B.C. couple celebrate ‘miracle’ pregnancy

‘I (said) to Adam, ‘I really think this is your brother reincarnated,’ Elise Estrada says

Survey finds doctors worry supplies of flu vaccine, PPE will lag demand

Canadian health officials have said additional flu vaccines have been ordered to meet expected demand

Most Read