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CMHC Predict a 14% Climb in Canadian Home Prices Over The Next 12 Months

In a sharp contrast to last Springs’  prediction of an 18% annual decline in housing prices, CMHC is now marching in tandem with the general consensus in the market forecasting world – as outlined in their CMHC Housing Market Outlook – Spring 2021.
They now see Canadian home prices could climb over 14% in the pandemic’s second year as the combination of low-interest rates, an insoluble supply shortage, the government’s unwillingness to rock the boat and a significant increase in immigration all combine in tandem with the recovery of the economy.
 
This confluence of events is expected to remain in place and reinforce strong house price growth throughout 2021 bringing more modest, single price growth expected in 2022 and 2023.
 
Toronto Real Estate Board (TREB) recently released its sales figures for April which showed a modest decline in activity compared to March’s numbers – no surprise given the unprecedented high level of sales over the last 12 months.
Putting the numbers in context – the 13,663 transactions for April is still 36.6% higher than the GTA’s 10 year average for April.
 
Jason Mercer, TREB’s Chief Market Analyst remains cautiously bullish and optimistic.
“Home prices will likely continue an upward trend. Revised population growth over the next year with a persistent lack of new inventory will underpin home price appreciation”
 
The momentum in housing price growth appears set to continue for the foreseeable future.
 
 

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