Canada: the rise in housing and rental prices will continue and reach new peaks.

Hello everyone! For a change, today we have some numbers.

A new forecast has just been released by the Canada Mortgage and Housing Corporation (CMHC).

They believe that by 2025, housing prices in Canada may match the peaks we observed in early 2022 and that by 2026, they could reach new highs.

Additionally, fewer new homes will be completed this year, while their numbers are expected to start rising again in the next two years.

As for rental housing: the number of units on the market is increasing, but it is not keeping up with demand. Therefore, the rise in rental prices and the decrease in available rental units will be inevitable in the coming years.

According to the most optimistic forecasts (of course, this depends on your perspective), housing affordability will continue to decline for another three years. We have discussed the reasons many times: the highest population growth in the country since the 1950s, along with mortgage rates.

So, according to the CMHC forecast, the level of sales in 2025-2026 will exceed the average for the last 10 years but will remain below the record level recorded in 2020-2021, because housing is still expensive.

In other words, there are no signs or reasons for a decrease in housing prices in the foreseeable future. This brings us to the question of when the best time to buy will be. My opinion is—now.

Best regards,

Denis (514) 577-0787

Denis Kornienko, Real Estate Broker REMAX

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