Canada Mortgage and Housing Corp. officials don’t expect real estate prices to return to pre-recession levels until late 2022 at the earliest.
The Toronto Regional Real Estate Board (TRREB) reports home sales in the Greater Toronto Area plunged 67 per cent in April as the economic effects of the COVID-19 pandemic put a chill on the housing market.
TRREB says there were 2,975 residential transactions in the GTA in April compared with 9,005 transactions in April 2019.
The average sales price in the City of Toronto fell 2.5 per cent, to $881,424 in April 2020 from $904,199 a year earlier. On a seasonally-adjusted basis, TRREB said April home prices in the GTA fell 11.8 percent from March.
Meanwhile, the Real Estate Board of Greater Vancouver (REBGV) reported sales dropped nearly 40 per cent in April, compared to the same month a year earlier ― already a weak month for sales.
Prices for renters were also down for the month, with the average one-bedroom rent falling 2.7 per cent to $2,107, and the average two-bedroom rent falling 4.1 per cent to $2,705.
The housing agency also cautioned that the impact of the COVID-19 pandemic is unpredictable and beyond its worst-case estimates prior to the outbreak.
The CMHC presentation came shortly after the release of April statistics for Canada’s largest real estate market.