Economics
Housing Agency Stands by Forecast for Sharp Price Drop in Canada
- Chief economist Dugan sees ‘tremendous’ housing market risks
- Current estimates imply decline of one fifth by start of 2021
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Canada’s federal housing agency is sticking to its pessimistic forecast for the future of the country’s housing market, citing “tremendous” risks from the Covid-19 pandemic.
Canada Mortgage and Housing Corp. forecast in May that average prices would fall between 9% and 18% from pre-pandemic levels before beginning to recover in the first half of 2021. Chief Economist Bob Dugan reiterated that forecast, though he cautioned that it’s difficult to predict the “peaks and troughs” and there are many moving parts.