Vancouver and Toronto’s markets have already seen a slow-down in their real estate sales and prices, but Montreal is anticipated to see high growth until 2020.
CMHC (Canada’s Mortgage and Housing Corporation) has predicted increased housing starts for the next two years, especially in the condominium and rental housing sectors.
“In the condominium segment, construction will increase thanks to a steady demand supported by employment growth and also to significantly lower inventories of new and existing condominiums for sale.”
Economic factors such as employment growth will demand in the resale market, which is expected to remain favourable to sellers through 2019 and 2020.
Home price growth is likely to exceed the average of 2.5% annually.
Rental demand is likely to increase at a faster pace than supply, which is expected to further lower the vacancy rate. Average rental prices will also increase, due to tightening conditions in the rental market.