Mortgage credit quality is highly correlated to jobs and house prices
Home prices are expected to bounce back eventually, but the timing of a recovery is uncertain
The number of homes sold has been steadily rising since mid-April
Quebec data was absent from April due to pandemic measures, affecting monthly comparison
Average house prices forecasted to fall between 9% and 18% over the next year
Sales in Toronto were down almost 54% year over year in May
The more pessimistic scenario could see deferred mortgages turning into foreclosures
There could still be challenges related to uneven demand
No region was spared from the deterioration in housing starts
April home sales were down 57.6% from a year earlier, CREA says