ON­TARIO HOME PRICES EX­PECTED TO RE­VERSE RE­CENT DE­CLINES

National Post (Latest Edition) - - FINANCIAL POST -

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.

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