Time may be right to purchase a house

Last week, the Leader-post reported on CMHC Housing Market Outlook which predicted housing prices will fall between nine and 18 per cent from pre-pandemic levels. The forecast is admittedly

“on the pessimistic side,” according to CMHC chief economist Bob Dugan.

Of important note, CMHC has based its evaluation on the most pessimistic half of the Bank of Canada forecast. Not to mention, CMHC’S worst-case scenario assumes a second wave of the virus and subsequent shutdowns will occur.

The harsh forecast released by CMHC really only reflects a “best guess.” Their predictions come off a bit like someone running into a room screaming “FIRE!” when things are warm, but no one has seen any smoke or flames.

Housing prices have remained relatively stable during the pandemic, as supply and demand moved in lockstep with a coinciding drop in new listings and potential buyers. You also must consider our nation’s housing market is extremely regionally diverse. Regional disparities in economic conditions mean housing prices will experience varying impacts from province to province and from city to city. Restrictions on construction activity, which have led to a sharp decline in housing starts in other Canadian provinces, were not implemented in Saskatchewan. This has softened the blow on housing starts for our local industry. In Regina, as we begin to recover in the wake of COVID -19, we are starting to see sales activity on the upswing once again.

For those who are confident in their employment status, want to access home ownership or are interested in exploring the range of housing options, this could be the right time to do so. Interest rates are forecasted to remain low and with a slower market, builders’ pencils are very sharp.

Stu Niebergall, Regina Niebergall is president and CEO of the Regina & Region Home Builders’ Association.