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Housing prices will continue to rise in the Montreal region until at least 2019, according to a forecast released by the Canadian Mortgage and Housing Corporation on Thursday.

“Rising demand, combined with declining supply, will cause market conditions to tighten again and become increasingly favourable to sellers,” the report said. “Consequently, the growth in the average price of homes over the forecast horizon should be definitely higher than the annual average of the last few years, which was about 2.5 per cent.”

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The crown corporation said it expects the higher demand for property to be driven by increasing full-time employment rates among people aged 25 to 44, the result Montreal’s strengthening economy. However, increasing mortgage rates could limit this.

Just how much prices will rise will depend on the type of property, CMHC said.

“The single-family home and plex markets should remain very favourable to sellers from now until 2019, which will increase the upward pressure on prices for these types of homes, while the condominium market will be on the fence between a balanced market and a sellers’ market over that period,” the report says.