Mortgage Professionals Canada has released its annual report on the State of the Residential Mortgage Market. It acknowledges the turbulent year in 2020 as a result of COVID-19, but says shifts in home-use habits and low interest rates contributed to strong market activity across the country.
Chief Economist Will Dunning says, “In a normal year, about 4.5% to 5% of Canadians buy a new or existing home.” He says, “This year, that share might rise to about 5.5% to 6%.”
Dunning says in proportional terms, this is a very large increase, and it is overwhelming the available supply. He also says it is possible, but not certain, that this could continue for some time.

Dunning says, “At the outset of the COVID-19 pandemic, there were concerns about rising unemployment and its impact on mortgage defaults. Since June, Canada has experienced eight consecutive months of record-breaking real estate transaction figures.”

The organization says that as the economy moves towards a post-lockdown COVID-19 reality, and with the increase in vaccination efforts, the housing market may deliver more surprises in the coming months.