TD Bank Forescast Home Prices on the Rise
As if things couldn't get any more expensive, home prices will be on the rise again due to lower interest rates and high demand for homes in Canada. An average of 5% to 6% will be gained for homes by the end of the year. These low interest rates have helped condo buyers with the affordability, but these lower rates sees the returns of previously interested buyers who further drive up the demand. Still as the average prices is increasing, TD economist Diana Petramala believes that we will enter a buyer based market. Bargaining power will grow and price pressure will ease giving buyers more control in the market. Condo prices are also predicted to take a hit as the prices are expected to fall by 2% in the following year, and more construction is already underway to help satisfy the demand of buyers. This price fall will make condos become less appealing as an investment property. Single family homes have already shot up 8% this year with an additional 2% expected by the end o...