The Canada Mortgage and Housing Corporation (CMHC) has released the most detailed 2020 outlook for the Canadian market so far. Here are some takeaways from CMHC’s market analysis.
1. Home sales will gain traction in 2020 and 2021:
Home sales started to decrease in 2017 and that decline stayed steady through 2019. But according to CMHC’s home sales forecast, Canada is in the midst of a u-turn. Ontario and BC have seen increases in disposable income with a strong demographic-driven demand for housing, according to the CMHC.
2. Home prices are on the incline:
The last couple of years haven’t been great for home prices, but according to the CMHC that is about to change. The CMHC anticipates that Ontario and Quebec will lead the way for increased growth in housing prices in 2020, with BC following in 2021 to be on par with Ontario and Quebec.
3. Home Building Will Neutralize:
After hitting a 10-year high in 2017, home building has declined drastically since. The CMHC believes that Canadians should expect the same number of homes starting construction to stay the same throughout 2020 and 2021, which isn’t horrible considering it is hoovering around the historical average for annual homebuilding. However, with a strong economic forecast for Canada, home builders won’t be put in a position to feel weary of new projects.