The Canada Mortgage and Housing Corporation says it expects home sales and the pace of their price growth to remain strong this year, but to ease from their 2021 highs.
The national housing agency says improving employment and immigration levels should be a key factor as the impact of pandemic-related restrictions continues to ease.
In his housing market outlookCMHC says it expects home sales and price growth to approach historical averages by late 2023 or early 2024, but says high prices will persist as growth prices will remain positive.
It indicates that the affordability of home ownership will decline as mortgage rates rise and price growth is expected to outpace income growth.
CMHC also says housing starts will slow from 2021 highs, but remain above historical averages.
Mortgage rates are expected to rise as the Bank of Canada raises its key interest rate target in an effort to control inflation. The central bank raised its key rate by half a percentage point to 1.0% last week and warned that more rate hikes were to come.
This report from The Canadian Press was first published on April 21, 2022