A real estate sign is pictured in Vancouver, Tuesday, June 12, 2018. THE CANADIAN PRESS Jonathan Hayward

A real estate sign is pictured in Vancouver, Tuesday, June 12, 2018. THE CANADIAN PRESS Jonathan Hayward

Home sales shifting towards pricier housing in several major markets, CMHC says

In more recent months, CMHC has seen the number of sales outpace new listings

Buyers are spending more money on home purchases in several major Canadian cities, even as the COVID-19 pandemic causes layoffs and income reductions across the country.

The Canada Mortgage and Housing Corp. said Thursday that home sales have shifted toward more expensive housing types in Vancouver, Toronto, Ottawa and Montreal in recent months.

The federal housing agency attributed the shift to fewer new immigrants, government relief programs that helped Canadians manage costs and pandemic-related employment troubles, which disproportionately kept younger and lower-paid Canadians out of the market.

“It’s higher income households that are continuing to manage to cope with the pandemic, have kept their jobs and their salaries are increasing, so demand at the higher end of the market probably reflects this,” said Aled ab Iorwerth, CMHC’s deputy chief economist, during a Thursday press conference.

“The other aspect that … may be happening is that people are selling condos at the city centers, looking for more single-detached housing further out in the suburbs or in rural communities, and those prices are generally higher.”

His comments came as CMHC released a report analyzing the Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal real estate markets throughout the pandemic.

The agency found the COVID-19 pandemic was no match for these markets, which saw prices, sales and housing starts soar above expectations during the health crisis.

The flurry of housing activity and increases were driven by government relief programs, variations in lockdown measures and pent-up demand for homes and show that many Canadians weren’t letting increased restrictions or dramatic economic situations deter them from buying.

CMHC’s analysis of the year revealed that lockdowns and other restrictions caused a sharp decline in sales and price levels in the second quarter of 2020, but they had rebounded, moving higher than pre-pandemic levels by the end of the third quarter.

In more recent months, CMHC has seen the number of sales outpace new listings, placing upward pressure on prices and keeping prospective buyers of more affordable housing out of the market.

CMHC found early in the pandemic, sales fell faster than new listings in Vancouver, Toronto, Ottawa and Montreal, but this changed in the third quarter, as strong growth in new listings was outpaced by stronger growth in sales.

Depending on how long the trend lasts, ab Iorwerth worries what it will mean for people looking for entry-level or less expensive housing.

He believes there may be people that lost their jobs permanently in the retail sector or others that have been hit hard by the pandemic, but the scale of those losses and their impact on housing is difficult to ascertain at the moment, he said.

While he predicts people will return to their normal spending habits and once more frequent restaurants and other urban entertainment venues as the virus is quelled, he said it’s too difficult to predict how long it will take the housing market’s lower-end to rebound.

He said, “We are really in the hands of the pandemic.”

Tara Deschamps, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Just Posted

Recreation therapy staff Karen Baker and Jenessa Dunkle dressed up for the tea on the Titanic, held on the 109th anniversary of the sinking of the vessel.
photo submitted
109 years after the sinking, the Titanic disaster is still remembered in Castor

Residents of Castor’s long term care facility were treated to an immersive celebration of the vessel

Alberta’a chief medical officer of health Dr. Deena Hinshaw said Thursday that there are more than 328,000 vaccine appointments booked over the next seven days. (Photo by Chris Schwarz/Government of Alberta)
Alberta surpasses 2 million doses administered of COVID-19 vaccine

Red Deer down to 835 active cases of COVID-19

Alberta Premier Jason Kenney arrives at the 2021 budget in Edmonton, Thursday, Feb. 25, 2021.
‘We did not unite around blind loyalty to one man’:Kenney faces internal call to quit

Senior backbench member Todd Loewen, in a letter posted on Facebook, called on Kenney to resign

Alberta continues to wrestle with high COVID-19 case numbers. (NIAID-RML via AP)
Red Deer up to 858 active cases of COVID-19

Province reports additional 1,799 cases of the virus

Marc Kielburger, screen left, and Craig Kielburger, screen right, appear as witnesses via video conference during a House of Commons finance committee in the Wellington Building in Ottawa on Tuesday, July 28, 2020. The committee is looking into Government Spending, WE Charity and the Canada Student Service Grant. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau didn’t violate conflict rules over WE Charity, watchdog says

Federal ethics commissioner Mario Dion found that former finance minister Bill Morneau did violate the rules

Chris Scott, owner of The Whistle Stop Cafe, was put in handcuffs after an anti-restriction protest Saturday in the parking lot of the business. (Screenshot via The Whistle Stop Facebook page)
Alberta RCMP investigating possible threat to police after Mirror rally

Online images show RCMP members, vehicles in crosshairs of a rifle

An Israeli attack helicopter launches flares as he flies over the Israeli Gaza border, southern Israel, Thursday, May 13, 2021. (AP Photo/Ariel Schalit)
Singh calls for halt on Canadian arms sales to Israel as violence escalates in region

Government data shows Canada sent $13.7 million in military goods and technology to Israel in 2019

New homes are built in a housing construction development in the west-end of Ottawa on Thursday, May 6, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Budget’s foreign-homebuyers tax could bring in $509 million over 4 years, PBO says

Liberals are proposing a one per cent tax on vacant homes owned by foreign non-residents

A Canadian flag patch is shown on a soldier’s shoulder in Trenton, Ont., on Thursday, Oct. 16, 2014. The Canadian Forces says it has charged one of its members in the death of an army reservist from British Columbia during a training exercise at a military base in Alberta last year. THE CANADIAN PRESS/Lars Hagberg
Canadian Forces member charged in death of army reservist during training exercise

Cpl. Lars Callsen has been charged with one count of negligence

A youth plays basketball in an otherwise quiet court in Toronto on Saturday April 17, 2021. The Canadian Civil Liberties Association is urging the federal and provincial governments to fight COVID-19 pandemic by focusing on proven public health policy interventions including paid sick leave, and education rather than punitive enforcement measures. THE CANADIAN PRESS/Chris Young
Provinces issued more COVID-19 tickets during 2nd wave: CCLA report

‘A pandemic is a public health, not a public order, crisis,’ reads the report

Prime Minister Justin Trudeau holds a press conference in Ottawa on Tuesday, May 11, 2021. Trudeau is rejecting accusations from Alberta’s justice minister that his federal government is part of a trio rooting for that province’s health system to collapse due to COVID-19. THE CANADIAN PRESS/Sean Kilpatrick
Alberta justice minister sorry for saying feds, others rooting for COVID disaster

Earlier Tuesday, prior to Madu’s apology, Trudeau rejected the accusations

In this Monday, March 15, 2021 file photo a vial of AstraZeneca vaccine is pictured in a pharmacy in Boulogne Billancourt, outside Paris. Questions remained Wednesday about the future of the Oxford-AstraZeneca vaccine in Canada, as Manitoba limited use of the shot and Ontario announced it planned to save an incoming shipment to use as second doses. THE CANADIAN PRESS/AP/Christophe Ena, File
Questions remain about the future of the Oxford-AstraZeneca shot in Canada

More than two million Canadians have received AstraZeneca and 17 have been confirmed to have VITT

Most Read