CMHC just put out their forecast for the major real estate markets across Canada. Here's 2 highlights, but also you can read the full report for Vancouver on page 11.
- Ontario, Quebec, and British Columbia will likely see the strongest price gains in 2022. This will largely reflect tighter supply constraints than in the rest of Canada. The growth in prices in these provinces is expected to slow by the end of 2024.
Excerpt from Page 11If buyers face greater financial obstacles than what we expect, market activity will slow to a greater degree. Historically, it takes several years for inventories and listings to rise to a point where this market sees downward pressure on prices. The main reason we may see average prices falling in the short run is a shift to more apartment sales rather than a broad-based price decline. We are unlikely to see a decline in the value of individual homes.
In Summary, we know a few things:
- still low supply (we had historic low inventory, and a huge increase, but still relatively low inventory)
- aggressive immigration plans
- prices are not increasing dramatically anymore
- we are seeing some price reductions as sellers were pricing for what they used to be able to get, not accommodating for the current market
- prices should cool off, but not dramatically drop