No letup seen in Canadian and Toronto housing markets
The Canada Mortgage and Housing Corp. projects average Toronto housing prices to continue increasing through 2016, nudging closer to $600,000.
Is a correction looming?
That was the question of the hour at the Toronto Housing Outlook Conference hosted by the Canada Mortgage and Housing Corp. (CMHC) at the Metro Convention Centre on Wednesday.
Can the Canadian and Toronto housing markets continue to boom?
The answer, in the short term, was yes. “Nothing here suggests to me that you should be running out as a homeowner and selling your real estate,” said CMHC regional economist Ted Tsiakopoulos. “We’re OK.”
The group projects average Toronto housing prices to continue increasing through 2016, nudging closer to $600,000.
That figure doesn’t appear to be outstripping demand, said CMHC chief economist Bob Dugan. “In Toronto we’re not overly worried about overvaluation.”
The long-term forecast is murkier, Dugan noted. Canadians have high levels of household debt relative to their incomes — in the U.S. and Britain, the figure plummeted during the 2008 recession — and nearly 70 per cent of their debt is bound up in residential mortgages.
That means an economic shock could prompt a housing selloff down the road. “Debt to income might be a vulnerability we have to worry about,” Dugan said.
By: E. Gee