They expect a 25% drop in some regions:
Canada’s national housing agency says the number of new homes being built and sold will remain below the levels they were at before COVID-19 until 2022 at least, and prices won’t get back to where they were for another two years either.
In a special report, the Canada Mortgage and Housing Corporation said Wednesday that the COVID-19 pandemic will lead to a “historic recession in 2020,” which will lead to “significant falls in indicators of the housing market.”
Just like the flu, but more so!
Spam filter seems to be back on track, so that’s good news.
Let’s do our end of the week news round up and open topic discussion, here are a few recent links to kick off the chat:
–Downturn in sales expected to last for years
–Who will buy the new supply?
–Falling rents pose a big risk
–Inflation turns negative
–Ready to go back to school?
–Deferral cliff could see 18% house price drop
So what are you seeing out there? Post your news links, thoughts and anecdotes in the comments below and have an excellent weekend!
Yeah, so you probably noticed the spam filter collapsed and just nuked everyone – we’ve switched that over and we’ll see if the new one works or not.
As far as news goes we seem to be in a holding pattern. Covid 19 has knocked out the market for listings and sales but we’re not seeing a big impact on prices yet with less moving.
How do you think this thing is going to pan out? Bounce back or bust?
With less travel during the pandemic, overnight landlords are seeing big drops in demand.
For years, Cheryl Dopp considered the ding on her phone from a new Airbnb Inc. booking to be the sound of what she called “magical money.” A property she rented out in Jersey City, N.J., on Airbnb could gross more than $8,000 a month, she said, double what long-term tenants would pay.
Now, Ms. Dopp associates the dings with cancellations and financial misery. The 54-year-old information-technology contractor said she had about $10,000 in bookings evaporate overnight in March.
Full article at the WSJ.
IMF chief says pandemic will unleash the worst recession since the Great Depression.
Even Canadian real estate markets are showing signs of a downturn.
Are you keeping your social distances out at all those open houses?