Moody's Analytics has weighed in on Canada’s housing market.
The financial intelligence company says home prices across Canada could tumble about 7% in 2021 as unemployment dampens the real estate market.
Furthermore, Moody’s says there is a dangerous oversupply of new, single-family homes in Calgary and Edmonton, on top of ongoing affordability issues in the Vancouver and Toronto markets.
Moody's 2021 home price index calls for a 6.7% decrease for single-family homes and a 6.5% decline in condo apartments. The prediction from Moody's comes after the Canadian Real Estate Association reported record-shattering home sales in July and August amid low mortgage rates.
But Moody's says that the real-estate sector will lose its momentum, especially in the prairie provinces, amid fading government support, the end of mortgage payment deferrals and ongoing struggles with consumer debt and joblessness.
If a COVID-19 vaccine comes out in the back half of 2021, the report suggests that home prices could rebound in 2022.
