Home price appreciation will slow in the Toronto market this year as a looming supply of new homes is completed, giving consumers more choice and helping to mitigate future gains, a bank study said. "The stock of new construction is rising and that will have the effect of slowing any price increases," National Bank of Canada senior economist Marc Pinsonneault said Tuesday.
Toronto prices were up 4 per cent at the end of 2009, with sales rising 17 per cent year over year, as homes sold in an average of 23 days, the shortest interval in recent history.
However, a record number of completions this year will help bring more listings to the market. Move-up buyers, meanwhile, are expected to put more homes up for sale, alleviating the supply crunch.
Given those factors, the bank echoes other analysts who say price appreciation likely will be much slower, or flat line this year. [read more ->]
Tony Wong - Business Reporter
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