Ravi Punia - REALTOR®

Fraser Valley Specialist


What Canada's housing market will look like after Covid-19

Good article in the Financial Post that interviews CIBC bank economists.  In it, the economists note “Overall, as the fog clears, we expect to see average prices 5-10% lower relative to 2019 levels, with high cost units in the high-rise segment of the market seeing the most notable price declines,” they said.

It is noted that the fragility of the economy means there will likely not be a quick snapback to the strengthening housing market we were seeing emerge in the first couple of months of the year.  The damaged labour market will likely dampen consumer confidence for some time.  Sadly, many job losses and business closures will be permanent.  With a high unemployment rate expected to last into 2021, we may not see any semblence of equilibrium in the housing market until then.

Price discovery too becomes more challenging in a somewhat 'frozen' market environment where there are scant listings due to the social distancing measures in place.  Reluctant prospective sellers and hesistant would-be buyers don't make for a normal operating environment.  Once this anxiety eases, we will work our way back to a more normally functioning transaction marketplace.  


Posthaste: What Canada’s housing market will look like in the post-COVID-19 world (it's not all good news)

*This blog communication is not intended to cause or induce breach of an existing agency agreement.  Views are my own and do not reflect those of any organizations that I may be associated with.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.