The housing market in Toronto is starting to look a lot like it did in early 2016 warns a new report.
RBC Economics says that the market is showing signs of overheating with lower inventories, rising prices, and a sales-to-listings ratio of 0.7 which suggests sharper price gains in the near term.
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In a housing market commentary, senior economist Robert Hogue says that the Toronto housing market could see its benchmark price rise by double-digits in the months ahead, following an annual pace of 8.7% in January and 7.3% in December. That assumes the tight market remains.
Spiralling house prices and potential policy intervention are the last things the market needs Hogue says.
Elsewhere, Vancouver is favourable to sellers and tighter demand-supply conditions is set to support this in the coming months. Hogue says that the benchmark price is set to move to growth on a year-over-year basis.
Prices are also set to maintain their recent upward trajectory in Ottawa and Montreal, while easing inventories should see prices stabilize in Calgary and Edmonton.