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

Boundary non-profits now eligible for emergency funds

Local charities can apply to get grants from the $40,000 pot, managed by the Phoenix Foundation

Drive-in theatre proposed for Grand Forks

City councillors will vote next month on whether to permit the use of the private property

A second wave of COVID-19 is probable, if history tells us anything

B.C.’s top doctor says that what health officials have learned this round will guide response in future

Snow expected to hit West Kootenay passes overnight on Thursday

Up to 15 cm of snow could fall on Highway 3 between Paulson summit to Kootenay Pass by Friday morning

Six homes ordered to evacuate early Tuesday morning in Grand Forks due to flooding

Two of the six were put on evacuation alert Monday evening

B.C. records no new COVID-19 deaths for the first time in weeks

Good news comes despite 11 new test-positive cases in B.C. in the past 24 hours

BC Corrections to expand list of eligible offenders for early release during pandemic

Non-violent offenders are being considered for early release through risk assessment process

Fraser Valley driver featured on ‘Highway Thru Hell’ TV show dies

Monkhouse died Sunday night of a heartattack, Jamie Davis towing confirmed

B.C. visitor centres get help with COVID-19 prevention measures

Destination B.C. gearing up for local, in-province tourism

36 soldiers test positive for COVID-19 after working in Ontario, Quebec care homes

Nearly 1,700 military members are working in long-term care homes overwhelmed by COVID-19

B.C. poison control sees spike in adults, children accidentally ingesting hand sanitizer

Hand sanitizer sales and usage have gone up sharply amid COVID-19 pandemic

B.C. man with Alberta plates gets car keyed and aggressive note

Some out-of-province people are finding hostile reception due to COVID-19 worries

Most Read