TD Bank Sees Rise in Housing Prices 2014
Low interest rates have helped with the affordability of condos, where prices are at their "most favourable." First-time buyers who may have been pushed out of the market earlier may also be returning back due to the rates, which have in part driven the demand for single-family homes.
In May, the national average resale home price grew 7.1 per cent year over year -- surpassing its 10-year average growth rate.
But looking past the short- to medium-term forecasts, Petramala said the Canadian real estate market is still expected to cool when interest rates rise and the number of available homes increase.
Those factors should be enough to "tip the market" back into one that favours buyers.