The study, carried out by Central 1 Credit Union, boldly predicts that home prices in Toronto could double within the next 25 years.
In particular, the study indicates that home prices in Ontario will jump by 4 per cent year-over-year until 2016, a figure which is slighlty less than the decade-long annual average of roughly 6 per cent.
A prediction like this would likely cause more talk about the market heading into a bubble scenario, but the study indicates that this increase is not slated to cause a correction.
Central 1 also predicts that Toronto's condo market will eventually slow down after several years of rapid buildup, due to decreasing demand. Additionally, Ontario’s vacancy rate is expected to remain at 2.6 per cent through the end of 2014, but will then fall to under 2 per cent in 2016.
Year-over-year, average prices in Toronto have seen noticeable increases. According to the study, prices have jumped 3.4 per cent, a slight increase over October's 3.1 per cent increase, This was the direct result of a larger price drop last seen in November 2012.
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