Canada’s Housing Market Headed for A Soft Landing by 2022 says RBC

A new report by RBC Economics shows that Canada’s housing market is likely to cool down by the end of the year after what may potentially be a record-breaking 2021.

The report published Wednesday said “supercharged” demand-driven in part by low rates, high household savings and improving consumer confidence will continue to push housing market activity in Canada to record highs. The increase is set to take place after 2020 that was likely the strongest year ever for the market despite the COVID-19 pandemic stalling activity in the spring.

In the report, RBC Senior Economist Robert Hogue estimated that home resale activity will reach 588,300 units in 2021, up from 552,300 units in 2020. The national benchmark price will rise 8.4 percent to $669,000, driven mainly by low supply, Hogue wrote.

But signs of a cooling down will also start to emerge at the end of the year, he said.

“Call it a 2022 soft landing,” Hogue wrote, leaving open the possibility of a worse slowdown should the pandemic remain a threat to the Canadian economy despite large-scale vaccine distribution.

RBC forecasted seasonally adjusted and annualized resales will be down from the December 2020 peak of almost 700,000 units to a “still solid” 515,000 units by the end of 2021.

The report says low housing supply, a COVID-induced market slowdown, rising interest rates and eroded affordability will be key factors in the cooling Canadian housing market.

The impact of the low levels of immigration caused by the pandemic, so far only felt in the rental and apartment markets in Canada’s largest cities, could begin to spread to the rest, the report said. back of the housing market at the end of the year.

This content is also available in: Tiếng Việt

#seesomething, saysomething

Culture Magazin magazine always wants to listen and receive contributions from readers.
In case you submit articles about your ideas, interesting social events or hot news that you would like to share with us, email us at info@culturerus.com or inbox us at the FB page – https://www.facebook.com/culturemagazin.
Try our test reporter once. Quality articles will be selected and posted on Culturemagazin’s website and official social networking sites!
#seesomething, saysomething

Discover

Bài Liên Quan

WHO Says Emerging Evidence Suggests COVID-19 May Be Airborne, Sparking International Debate

Earlier this week on Tuesday afternoon, the World Health Organization acknowledges the emerging evidence of the airborne spread of the novel coronavirus...

The Origin Of The Name Ha Noi

Dear Mr. Nguyen Ngoc Ngan,In the music video Hue – Sai Gon – Hanoi, you said that king Minh Mang changed...

Federal Debt is Manageable If GDP Growth Continues Says Poloz

Accelerating Canada's long-term economic growth by reducing interprovincial trade barriers and introducing programs like universal daycare could be the best way to...

Ontario Reports Significant Spike in New COVID-19 Cases, Including 27 from Kingston Nail Salon

On Monday, June 29, Ontario Health Officials reported a significant rise in the number of COVID-19 cases in the province, with many...

Ontario projects 3,000 to 15,000 COVID-19 deaths with health measures in place

On April 3, 2020, Ontario’s top health officials provided early COVID-19 projection numbers that forecasts between 3,000 to 15,000 people in the...

Windsor-Essex Stays in Stage 2, Social Circles of 10 People Will Remain Until Next Year, As Ontario Reports 91 New COVID-19 Cases

Over the Civic Holiday Long Weekend, Ontario reported lower than 100 new cases of COVID-19 during the past two days with 88...

Cu Lao Hotpot

Cu Lao is a must-have dish at every wedding in the South-Western part of Vietnam. It is customary for the bridgegroom’s...

This content is also available in: Tiếng Việt