A new Desjardins report forecasts a modest recovery in Ontario’s housing market for 2027, with existing home sales expected to rise nearly 5% as lower prices, rising incomes, and first-time buyer supports lure buyers back into the market. However, the outlook carries significant caveats: the Bank of Canada is projected to raise rates twice more, potentially offsetting affordability gains and pressuring both homebuyers and developers. Senior economist Kari Norman highlights a striking contradiction—improved affordability and buyer choice exist alongside persistent market weakness. Housing starts are expected to climb 6% to nearly 65,000 units, though still 30% below 2021-2022 peaks. Average home price growth is forecasted at just 2.4%, while rental conditions should remain balanced with rents rising 1.4%. Key risks include lingering US-Canada trade tensions and Middle East-related oil price pressures, both threatening to drive inflation and borrowing costs higher. For GTA readers, the takeaway is clear: 2027 may offer opportunity, but timing and rate movements will be critical. Read the full analysis at the source link to understand what this means for your real estate decisions.
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