Even though real estate markets have been on fire in many Canadian cities this summer, the head of the federal housing agency says all may not be well in the market.
In a recent tweet, Canada Mortgage and Housing Corp. president and CEO Evan Siddall stated that around 14 percent of mortgages remain in deferral.
"Not all will go into arrears and not all of that subset will result in foreclosure," he declared.
Then he added that other factors—such as home prices, demand, supply, rates of unemployment, and government supports—will play a role in the ultimate results, which he described as "unknowable".
In May, Siddall tweeted that 12 percent of mortages were in deferral, but suggested that this could rise to 20 percent by September.
In the past, CMHC has predicted that home prices across the country will fall from 9 to 18 percent over the next year as a result of the pandemic.