- The combination of stronger government spending and moderate interest rate increases suggests the Ontario and GTA economies are expected to grow more moderately but to continue to provide underlying support for provincial real estate prices in 2018 and 2019.
- The type of homes expected to sell will also shape the behaviour of future prices as fewer single family home sales in the mix of all homes sold will restrain overall price appreciation. This will be particularly true in more expensive markets such as Toronto and Hamilton.
- Ontario home prices will continue to grow but at a more moderate pace that is more in line with the rate of inflation. However, our updated forecast expects prices to grow slightly higher than what was reported in our Fall 2017 Housing Market Outlook due to somewhat stronger than expected job creation and in-migration.
- For prospective buyers, the presence of balanced markets and easing of speculative behaviour will allow for more informed decision making, leading to fewer bidding wars and less urgency to act.
- For homeowners, home price expectations may take some time to normalize, which could lead to homes staying on the market longer than usual.
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As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.
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