
Earlier this year, the Canada Mortgage and Housing Corporation made a now-infamous prediction that home prices would fall by up to 18% over the course of 2020 and into 2021.
Instead, prices have since risen by approximately 22% to $603,000, as of November.
That discrepancy illustrates how difficult forecasting the housing market has become due to the economic uncertainty created by the pandemic.
For instance, factors suggesting a strong economic recovery in 2021 include promising developments on the vaccine front, sizeable spending by the federal government to support and stimulate the economy, pent-up consumer demand and historically low interest rates.