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Housing prices in Greater Toronto Area are expected to reverse course in the second half of the year after a brief slump, according to a Royal LePage forecast, despite the threat of escalating Canada-U.S. trade tensions that could dent the Ontario economy.

In its quarterly forecast released Tuesday, real estate firm Royal LePage expects housing prices in the GTA to rise 2.1 per cent in the third quarter, underpinned by a growing labour market, steady economic growth and still-low interest rates.

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“Based on our analysis the market has bottomed out,” said Phil Soper, the CEO of Royal LePage.

Soper said recent headwinds for housing prices in the Toronto area will eventually be mopped up by the current undersupply of new homes, as Ontario’s population continues to grow and in-migration levels reach their highest in more than 10 years. The province saw a net gain in migration over the first quarter of 2018, a nearly 50 per cent increase from the year earlier.