CMHC PREDICTS HOME PRICES AND SALES ACTIVITY WILL CONTINUE TO RISE

Canada Mortgage and Housing Corp. (CMHC) predicts that the average Canadian home price could complete the year with overall price gains in the area of 14%.

Forecasting that the average home price across the country could hit $649,400 by the end of 2021 and climb as high as $704,900 by 2023. Last year closed with sales activity reaching 551,392 units and an average home price of $567,699.

Low mortgage rates and high savings rates are forecast to continue to support sales. Existing home sales and price growth is expected to moderate from the record 2020 pace but will remain elevated.

The five-year mortgage rate is expected to increase but to remain very low, by historical standards, toward the end of 2023. The CMHC estimates that the savings rate will be lower than last year as the economy re-opens and consumer spending increases.

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