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

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

Crews retrieved the overturned commercial truck from the crash scene on Friday, Nov. 20. Photo: Betsy Kline
UPDATE: Kootenay woman dies in Genelle collision

The incident occurred Thursday, Nov. 19.

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
104 new COVID-19 cases in Interior Health

IH is reporting the new numbers since Friday, Nov. 20

Photo: Trail Times
Castlegar man and woman arrested in downtown Trail

Police allege the truck they were in had a stolen licence plate on the rear

USA Today ranked the City of Rossland as it’s top Canadian ski town, and no. 2 in all of North America, while Nelson was ranked no. 10 overall. Photo: Jim Bailey.
Rossland and Nelson rank among top North American ski towns

USA Today ranked two West Kootenay communities among Top 10 Ski Towns in North America

Trail RCMP seized illicit drugs, cash and a weapon following a traffic stop in West Trail on Nov. 18. Photo: Trail RCMP
West Kootenay man, woman face drug charges after traffic stop

Police report that three types of illicit drugs were seized as well as cash and a Taser

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

Most Read