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.
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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.
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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.