CMHC: Housing Prices in Ontario is expected to increase
According to CMHC: Housing Prices in Ontario is expected to increase, recent easing of home prices isn’t expected to the last long, thanks to the solid rising interest rates and economic growth projections.
Province will see increase in home prices which are driven by the state of economy of province, lack of ownership affordability and balance between demand and supply, predicted by Canada Mortgage and Housing Corp. released on Thursday in a report on Ontario’s housing market.
Based on the analysis by Crown corporation, housing prices in Ontario will be between $562,000 and $575,000 in year 2018, but these prices will reach between $570,00 and $595,000 in the year 2019.
In April, Canadian Real Estate Association said that average price of a home in Ontario was at $578,072, which is down by 13% as comparative to a year before, when real estate market was facing frenzied state of prices and sales.
Ted Tsiakopoulos, an economist at CMHC said that home prices are plateauing and are expecting to grow along sustainable linear path which is being supported by continued growth of economy, moderate increases in rate of interest and the only modest increases in the new housing supply.
According to reports by CMHC said that more a forecast growth of GTA or Ontario economy, steeper increase in interest rate or declining business and consumer sentiments may place extra pressure towards downwards on prices.
So, they said that the home price increases outlined in reports and this will stabilize real estate market and will cause fewer bidding wars,that means that prospective buyers will be afforded to make decision because they will not feel urgency to make the offers.
On the other flipped side, CMHC said that homeowners may see properties sit on the real estate market for the longer period of time than the usual.