The Canada Mortgage and Housing Corporation’s Ontario Housing Market Outlook says that housing activity in Ontario is expected to remain elevated before easing up next year.
Housing starts in Ontario are now expected to be higher by almost 2,000 units in 2016, with another 213,000 to 231,500 units total in 2017.
Prices in Ontario are also expected to continue to grow, however at a slower rate overall despite strong short-term growth.
The average selling price for a home in Ontario will be between $505,500 and $516,100 this year, and between $517,100 and $535,400 next year.
“Despite an improving Ontario economy, housing activity is expected to ease over the forecast period as the cost of owning a home continues to increase,” said the Regional Economist (Ontario) for the Canada Mortgage and Housing Corporation, Ted Tsaikopoulos. “However, homes in southwestern and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a growing share of activity in those centres as we do for higher density housing which includes less expensive rental accommodation.