While every sector of the economy is feeling the pinch from the coronavirus pandemic, housing prices in Saskatchewan have remained stable.
However, the Canada Mortgage and Housing Corporation (CMHC) thinks that’s about to change. “There will be a big temporary negative shock.
But I think the underlying dynamics over the long term will remain the same,” said deputy chief economist Aled ab Iorwerth. The Crown corporation is projecting housing prices across the country to be hit between nine and 18 per cent.
But that falls to 25 per cent in provinces like Saskatchewan and Alberta who are also feeling effects from the drop in oil prices. “Obviously if energy prices come back quickly, then that rebound could happen.