Royal LePage is forecasting that if COVID-19 stay-at-home restrictions are eased during the second quarter, house prices will finish the year up by one per cent year-over-year. If the restrictions continue through the summer, the negative economic impact is expected to drive home prices down by three per cent, the company says.

“The impact of COVID-19 on the Canadian economy has been swift and violent, with layoffs driving high levels of unemployment across the country,” says Royal LePage president and CEO Phil Soper. “While is it sad that these people skewed strongly to young and to part-time workers, for the housing industry, the impact of these presumably temporary job losses will be limited as these groups are much less likely to buy and sell real estate.”

In explaining why the company doesn’t foresee a large price drop, Soper says, “Home price declines occur when the market experiences sustained low sales volume while inventory builds. Currently, the inventory of homes for sale in this country is very low, matching low sales volumes as people respect government mandates to stay at home".