Canada Mortgage and Housing Corp. (CMHC) forecasts that home sales and prices will remain elevated for the remainder of this year but should ease from their highs as interest rates rise.
The national housing agency says in its latest housing market outlook that it expects home sales and price growth will fall more in line with historical averages by late 2023 or early 2024.
CMHC also says that home ownership affordability will decline with rising mortgage rates and with the growth in prices expected to outpace income growth across Canada.
CMHC also says housing starts will moderate from 2021 highs but remain above historical averages.
Mortgage rates are rising as the Bank of Canada raises its trendsetting interest rate to bring inflation under control. The central bank raised its policy interest rate by half a percentage point to 1% last week and warned that more rate hikes are on the way.
