Toronto home prices will likely increase through the end of the year as the market struggles to produce more housing stock.
Even so, because mortgage rates have stabilized, more buyers are also looking at jumping into the market. The average home price could reach the $1.33 million February 2022 peak, Fox predicted, if inventory levels keep falling. “We’ve found the value bottom for home prices, and over the last couple of months we’ve seen prices pick back up,” said James Laird, co-CEO of Ratehub.ca. “I feel reasonably confident that home prices will not fall further. A modest price gain is a reasonable expectation for the second half of the year.”Ben Rabidoux, founder of real estate data firm Edge Realty Analytics, agreed, adding it would “be a surprise” if the 2022 price high was recaptured this year.
Another reason is sellers are waiting for interest rates to drop, which could see more inventory on the market next year when the Bank of Canada decreases the overnight lending rate, he said.