Toronto’s gravity defying house prices should continue their upward climb over the next three years with gains of about 4 per cent both this year and next, predicts a new housing report by Central 1 Credit Union.
That means the average Toronto home could cost $523,000 by the beginning of 2014, up from about $500,000 right now, despite interest rates that could climb to an average of almost 4 per cent for a one-year term and 5.7 per cent for a five-year rate by 2013, says the report released Friday.
The average house price across the rest of Ontario should hit $378,700 this year, up about 3.4 per cent, and register further gains of 4 per cent next year before slowing to about 2.6 per cent in 2014, says the Ontario Housing Outlook 2012-2014 report.
While interest rates are expected to climb further in 2014, they are likely to remain at near historic lows, says the report by Central 1 chief economist Helmut Pastrick.
“My view is that the market is not overvalued, that we’re not in a housing bubble. What we’re seeing is high prices that are just due to supply and demand fundamentals, for the most part,” says Pastrick.
“I don’t expect a price correction any time in the next couple of years.” see full article here
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