According to a special edition report from the Canada Mortgage and Housing Corporation’s (CMHC) Housing Market Outlook report, housing starts, sales and prices are all expected to plunge until a recovery, which is expected to start sometime in mid-2021, gets underway. The CMHC expects housing starts to decline anywhere from 51% to as much as 75% in 2020, from pre-COVID-19 levels. Existing home sales are also expected to slump this year, falling 19% to 29%, with recovery expected to start late in 2020. Average home prices are forecast to drop by 9% to 18% in 2020, with recovery anticipated to begin in the first half of 2021. CMHC Chief Economist Bob Dugan said that “The precise timing and speed of the recovery is highly uncertain because the virus’ future path is not yet known”.
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