Please feel free to read the attached Housing Outlook. Here is a summary from CMHC Chief Economist
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“Declining house prices and weaker housing supply are expected to continue to affect Canada’s housing market in 2023. While prices have declined, homeownership will be less affordable because of higher mortgage rates and still-elevated price levels. Rental affordability will also likely decline as demand outpaces rental supply. We foresee a significant drop in housing starts in 2023 than seen in the 2020-2022 period, but some recovery in 2024 and 2025. Consequently, supply gaps in Canada’s most expensive and supply-constrained housing markets, including Vancouver and Toronto, will worsen. Economic recovery and high immigration will add to housing demand in 2024 and 2025, but challenges related to affordability and supply will persist. We also look at an alternate scenario to reflect our concern about significant downside risks from elevated household debt, prolonged inflation, and elevated interest rates.” —Bob Dugan, Chief Economist