Home Sales To Moderate

In 2022, the level of home sales will remain elevated compared to long run averages, but will moderate from their 2021 peaks, says the Canada Mortgage and Housing Corporation (CMHC). And over the 2023 to 2024 period, its ‘Housing Market Outlook’ says these trends will continue, reflecting the impact of higher mortgage rates and lower housing affordability on housing demand. Housing sales and price growth will fall more in line with historical averages by late 2023 or early 2024, but elevated price levels will persist since price growth will remain positive. These factors will place greater pressure on the affordability of entering homeownership. Housing starts will also moderate from 2021 highs, but remain above historical averages. This reflects expected support for new home construction to address current and growing housing supply gaps.