Advertisement

Home prices expected to ease off 2021 highs but remain elevated this year: CMHC

Click to play video: 'Flipping homes for big profits is pricing some buyers out of the market' Flipping homes for big profits is pricing some buyers out of the market
The practice of house flipping can yield big profits for investors, but it's not so great if you're looking to buy an affordable home. Global News Morning speaks with Housing Activist Rohana Rezel about how the practice is pricing some home buyers out of the real estate market. – Mar 31, 2022

Canada Mortgage and Housing Corp. says it expects home sales and the pace of price growth for them will remain elevated this year, but ease from their highs of 2021.

The national housing agency says improving levels of employment and immigration are expected to be key factors, as the impact of pandemic restrictions continue to ease.

In its housing market outlook, CMHC says it expects home sales and price growth will fall more in line with historical averages by late 2023 or early 2024, however it says elevated prices will persist since price growth will remain positive.

Read more: Home prices could rise 15% in 2022 despite efforts to cool market: Royal LePage

It says home ownership affordability will decline with rising mortgage rates and with the growth in prices expected to outpace income growth.

Story continues below advertisement

CMHC also says housing starts will moderate from 2021 highs but remain above historical averages.

Mortgage rates are expected to rise as the Bank of Canada raises its key interest rate target in an effort to bring inflation under control. The central bank raised its policy interest rate by half a percentage point to 1.0 per cent last week and warned more rate hikes are coming.

Click to play video: 'Canadian home prices could rise 15% in 2022: Royal LePage' Canadian home prices could rise 15% in 2022: Royal LePage
Canadian home prices could rise 15% in 2022: Royal LePage – Apr 19, 2022

Sponsored content