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Latest in Mortgage News: Home Price Recovery Not Expected Until 2022

Steve Huebl
Publication date:
May 7, 2020
Article Summary: 

The Canada Mortgage and Housing Corporation (CMHC) is forecasting it will take at least until 2022 for a return to pre-recession levels. Early figures suggest 10% of CMHC's insured mortgages are now in deferral. CIBC economists say the housing market faces challenges in the coming 12 to 18 months, particularly once the mortgage deferral periods run out. Prices are already down in April, but forecasts peg eventual year-over-year price declines anywhere from 5% to 10%. CMHC declared $2 billion in dividends to the Canadian government in 2019.

The federal housing agency, CMHC, reported its insurance in force at $429 billion, down from $448 billion in 2018 and $526 billion in 2015. It also reported 2,950 applications for the First-Time Home Buyer Incentive, with a $1.25-billion budget with a goal of assisting up to 100,000 first-time homebuyers. Tiff Macklem, the new Bank of Canada Governor, indicated support for current policy measures and confirmed he sees supporting market stability and providing liquidity as the bank's top priorities.


housing prices, housing prices forecast, pre-recession levels, mortgage deferral, CMHC, Canada Mortgage and Housing Corporation

Source Citation: 
Steve Huebl
Latest in Mortgage News: Home Price Recovery Not Expected Until 2022
May 7, 2020
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