Canada’s surging housing market may be peaking

Over 600K homes could be sold this year; numbers would fall in 2022

National Weekend Edition /
May.May 09, 2021 09:00 AM
(iStock)

(iStock)

Canada’s soaring home sales may reach their highpoint in 2021. From there, numbers could start to dip.

The Canada Mortgage & Housing Corporation projects that as many as 602,000 homes could be sold this year, up from 550,000 last year, according to Bloomberg.

The government agency expects the number of sales will slide next year to about 547,000, before ticking back up to 561,100 in 2023. Pricing is expected to climb throughout that period and could reach up to $578,000, about 704,000 in Canadian dollars.

Some economists are concerned that Canada’s housing market is well on its way to bubble territory. Overall pricing hit record highs last year and some markets saw prices shoot up more than 30 percent in 2020.

Like the U.S. market, the Canadian housing market frenzy is being fueled in part by high demand built up during pandemic-related pauses in business as well as near-record low mortgage rates since summer.

Canada’s financial system exposure to the mortgage market is twice that of the U.S. however, which means any downturn could be devastating for the country’s economy.

[Bloomberg] — Dennis Lynch


Related Articles

arrow_forward_ios
Photo Illustration of Airbnb CEO Brian Chesky and Vrbo CEO Jeff Hurst (Getty)
Home invasion: Vrbo aims to poach listings from Airbnb as summer heats up
Home invasion: Vrbo aims to poach listings from Airbnb as summer heats up
Sweden is one of the countries most at risk (Getty)
Here are the countries most at risk of a housing bubble
Here are the countries most at risk of a housing bubble
Millions of homeowners remain vulnerable as forbearance winds down
Millions of homeowners remain vulnerable as forbearance winds down
Millions of homeowners remain vulnerable as forbearance winds down
Confidence is lowest in the Northeast and Midwest, at 73 and 70. (iStock)
Homebuilder sentiment slides to 10-month low in June
Homebuilder sentiment slides to 10-month low in June
The Savoy Hotel in London, UK in 1980 (Getty)
UK hospitality employers could cut half a million jobs
UK hospitality employers could cut half a million jobs
Federal Reserve Chair Jerome Powell (Getty)
Traders eye Fed pullback on mortgage bonds
Traders eye Fed pullback on mortgage bonds
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
John Helm of RET Ventures
Venture capital fund closes fund to invest in “rent tech”
Venture capital fund closes fund to invest in “rent tech”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...