TORONTO — Home prices across Canada could tumble about seven per cent in 2021, as unemployment dampens the hot real estate market, according to a forecast by Moody’s Analytics, Inc.
There is a “dangerous” oversupply of new, single-family homes in Calgary and Edmonton, on top of affordability issues in Vancouver and Toronto, the financial intelligence company said in a report this week.
“The housing market will no longer be able to escape the poor condition of the labor market,” said the report, which used data from a Brookfield Asset Management Inc. subsidiary, RPS Real Property Solutions Inc.
“Not even lower interest rates will be enough to save the housing market.”
Moody’s report did not go into detail on how it created the forecasts, but said that its 2021 home price index also calls for a 6.7 per cent decrease for single-family homes and a