Softer GTA housing market won’t make owning or renting any easier, CMHC says

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Canada’s national housing agency says rising interest rates and inflation will slow climbing home prices — but it won’t stop them.

The Toronto region will see a softening in its scorching real estate market this year and next as consumers grapple with creeping interest rates and the worst inflation in 30 years.

The Housing Outlook forecasts a range of prices for major markets across the country through 2024. It forecasts a high and a low, leaving room for variables in the economy such as interest rates, employment and inflation. That puts the GTA well above CMHC’s national forecast. It expects Canadian prices to reach between $756,500 and $867,800 in 2024, up from a range of $740,700 to $782,400 this year.

Consumers whose spending power will be reduced by higher mortgage rates will gravitate to lower priced townhouses and condos, even as the average price of a home remains high, said CMHC’s chief economist Bob Dugan. The report notes the price difference between a condo and a single family home rose last year from about $521,000 in 2020 to about $758,000 in 2021.

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The only hope for ever getting to some normalcy in RE as we had some decades ago (home cd be purchased for 2-3 yrly incomes) is a total collapse of the system that brought this to you. Capitalism, but not one 40yrs ago but Neo Liberal/globalized that replaced it USA is 1 culprit

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