Toronto housing prices will continue to rise next year by as much as 5 per cent, according to a forecast by the Canada Mortgage and Housing Corporation.
Although price growth will slow, buyers looking for relief from the tight markets of 2009 will face another year of rising home values. The forecast said the average price of an existing home at the end of 2010 will be $412,000, compared with $392,540 by the end of this year.
The 5 per cent growth forecast is in line with the average annual increase for the decade.
The growth, the federal housing corporation said, will be fuelled by the sales of more single-detached housing. For the first time since 2006, low-rise homes will account for the majority of sales in the GTA this year and next, according to the forecast.
“With low interest rates people are buying more house or going to nicer neighbourhoods, which is helping average prices move upward,” said Shaun Hildebrand, senior market analyst at the CMHC.
Even though prices and listings will move higher, sales for 2010 are actually expected to be down by 4.9 per cent as the market cools.
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