ONTARIO HOME PRICES EXPECTED TO REVERSE RECENT DECLINES
The recent easing of home prices in Ontario isn’t expected to last long, thanks to solid economic growth projections and rising interest rates. The province will see “moderate” increases in home prices driven by the state of the province’s economy, the lack of ownership affordability and the balance between supply and demand, predicted Canada Mortgage and Housing Corp. in a report on Ontario’s housing released Thursday. Based on the Crown corporation’s analysis, Ontario prices will range between $562,000 and $575,000 in 2018, but reach between $570,000 and $595,000 in 2019. In April, the Canadian Real Estate Association said the average home in the province was priced at $578,072, down 13 per cent from the year before, when the market was facing a frenzied state of sales and prices. CMHC’s report said that more below-forecast growth of the Ontario or GTA economy, steeper interest-rate increases or declining consumer and business sentiment may place extra downward pressure on prices.