Real Estate Continues to Show Unprecedented Strength This Year - October 22, 2020
Ian Walterhouse
Thursday, October 22, 2020
Real Estate Continues to Show Unprecedented Strength This Year
The 2020 housing market has surpassed all expectations and continues to drive the ’s country’s economic recovery. The question is, will this positive trend continue throughout the rest of the year, especially given the uncertainty around the current health crisis, the upcoming US election, and more?
Here’s a look at what several industry-leading experts have to say.
Lawrence Yun, Chief Economist, National Association of Realtors
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market….Further gains in sales are likely for the remainder of the year with mortgage rates hovering around 3% and with continued job recovery.”
Matthew Speakman, Zillow Economist
“ In a remarkable show of resilience, the housing market has stared the pandemic right in the eye and hasn’t blinked.”
Tim Hudak, CEO Ontario Real Estate Association
“Real estate saved our economy during the last downturn and it can once again be the locomotive that gets us back on track.”
There is still a debate among many leading economists regarding the Canadian Mortgage and Housing Corporation’s (CMHC) previous property forecast that calls for a 9-18% price drop in the coming months. Findings from a new report shares forecasts from 16 Canadian economists shows that the majority of economists believe interest rates will hold close to the current rate until at least 2023. This, according to many experts, suggests that predicted declines in property values are not likely.
Half of the panel said the Canadian property market might not fall as far as expected. In fact, half the panel says that the CMHC forecast that Canadian house prices will fall up to 18% this recession is “no longer relevant.” In the report, Dominion Lending Centres chief economist Sherry Cooper explained that the average home prices nationwide were up by 1.5% at the latest reading in August, cautioning that the CMHC is “overly pessimistic.”
Overall, prices are “actually on the rise” and that record-low mortgage rates will continue to drive sales and prices higher.
Bottom Line
Many economists are in unison, indicating the housing market will continue to fuel the economy through the end of the year, maintaining this unprecedented growth.
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