In a special report, the CMHC said Canada could see declines in output, employment and immigration exceeding those observed during the 2008-2009 recession. The declines will in turn drive large falls in housing starts and sales in 2020. The prices will fall by between nine and 18 percent from where they were before the pandemic.
"Following large declines in 2020, housing starts, sales, and prices are expected to start to recover by mid-2021 as pandemic containment measures are lifted and economic conditions gradually improve," said Bob Dugan, the CMHC's chief economist.
"Sales and prices are likely to remain below their pre-COVID-19 levels by the end of our forecast horizon in 2022. The precise timing and speed of the recovery are highly uncertain because the virus's future path is not yet known," Dugan said.
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