Owning a home is a huge investment for most Canadians so fear over an economy turned on its head is understandable. CMHC warned the average price of a home could fall between 9% and 18% due to COVID-related uncertainty. Oil producing regions are where much of the concern lies. Analysts also point out vulnerabilities in Vancouver and Toronto's condo markets. Average Canadian house values have increased over 5% annually in 25-year periods dating to WWII, according to CMHC. Federal fiscal measures should keep borrowing rates low for the foreseeable future - presenting an opportunity for prospective homebuyers over the next three years.
While a home should never be the only investment in a retirement portfolio, it uniquely presents:
- The liklihood it will go up in the value over time
- Paying a dividend (of sorts) by renting out all or part of the home
- Access to low-interest rates through a home equity line of credit