Central 1 Credit Union Says Ontario Will Enjoy Strong Housing Market Through 2017

TORONTO, ONTARIO--(Marketwired - March 26, 2015) - Ontario home prices are set to rise about five per cent a year and sales will be strong through 2017, says a new forecast by Central 1 Credit Union.

The housing market is poised to expand at a robust pace, driven by a stronger economy thanks to faster growth in the U.S., the weaker loonie, and energy savings from lower oil prices, says Helmut Pastrick, Central 1's Chief Economist.

Upward pressure on house prices will continue, though it will ease later in this three-year forecast when listings will come onto the market at a faster pace.

"In recent years, supply has not kept up with sales, resulting in price increases well above the inflation rate," Pastrick said. "Housing sales are forecast to rise about three per cent each year through to 2017 with housing prices rising close to five per cent annually."

Markets outside Toronto are forecast to gain momentum with more regional markets participating in this housing expansion phase. Southwestern markets can expect to build on recent gains, while markets in northern Ontario remain rangebound.

Market fundamentals will push Toronto's record home prices up by 17 per cent in the next three years, Pastrick said.

"Some commentators believe that Toronto housing is in a bubble and about to crash, but I disagree," Pastrick said. "The principal drivers of home prices are market demand and supply fundamentals. Toronto's population is growing and supply is limited. Prices will keep rising until the next economic recession, whenever that is."

Read the full report: Ontario Housing Outlook 2015-17.

About Central 1

With offices in Vancouver, Mississauga and Toronto, Central 1 - which holds approximately $13 billion in on balance sheet assets - provides wholesale financial products, trust services, investment banking services, along with digital and payment services that power innovation in retail financial services for more than 300 credit unions and institutional clients from coast to coast.

In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our member/owner credit unions in B.C. and Ontario. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.3 million members and holds more than $97 billion in assets. For more information, visit www.central1.com.