Latest in Mortgage News: House Prices to Moderate This Year, Says CMHC

The Canada Mortgage and Housing Corporation (CMHC) expects house prices to moderate from the "unsustainable" increases seen over the past year. Home sales topped 550,000 in 2020, but could rise to 602,300 in 2021 before falling back to 547,100 in 2022 and 561,100 in 2023. Prices are expected to average $649,400 in 2021, with a forecast average of $704,900 by the end of 2023. Preliminary data from April shows average home sales and prices pulling back on a monthly basis. The real estate market in Greater Vancouver and Montreal saw a significant increase in home sales in April, while the MLS Home Price Index composite benchmark price for all property types was $1,152,600.

The median single-family home price was $500,000, while the median condo price was $357,750. The NDP promised a 20% levy on home purchases made by non-residents and a $14-billion investment in housing construction to build over 500,000 new units over four years. The Liberal government recently announced a 1% foreign owner’s tax on vacant properties.