Canadian home prices are stabilizing, and expected to rise again later in the year, according to the latest housing market outlook from the“Home prices seem to be levelling off,” said CMHC Chief Economist Bob Dugan on a call with reporters. “We believe that we’re near the bottom.”
“We need a much higher level of starts than is currently being forecasted if we want affordability to improve,” he added.Dugan expects prices to start increasing again in the third or fourth quarter of 2023, but notes there’s already increasing demand in some markets,Eight interest rate hikes in a row by the Bank of Canada, after record lows during the height of the pandemic, led to housing price drops.
In Toronto the report forecasts between 28,500 and 33,500 housing starts for this year, 60,000 to 74,000 sales, and an average MLS price of $1.043 to $1.107 million. The predicted vacancy rate for Toronto is 1.5 per cent and the average rent for a two bedroom is $1,900 a month, looking only at purpose-built rentals and not condos.