PWC wavers on Toronto real estate prognosis
PricewaterhouseCoopers is giving Toronto's real estate market a mixed prognosis for 2023. Gross domestic product (GDP) is expected to grow by 3.5%, lower than predicted, but is overshadowed by a proposed 46% hike in residential development charges for 2024.
Toronto's real estate market is a favourite among survey respondents for various factors such as its solid population growth forecasts which, as one interviewee stated, have raised confidence in the region's real estate 'boom'..
Continued economic expansion is one of the elements supporting the market. Conference Board of Canada’s (CBoC) estimated 3.5% increase in GDP in 2023 is a modest decrease from the board’s 2022 projection of 3.8%.
Short-term predictions for Toronto’s real estate market remained mixed. CMHC's spring 2022 housing market outlook accurately forecast overall housing starts would decrease in 2023 due to fewer pre-construction sales, before increasing in 2024. The City of Toronto intends to increase residential development fees by 46% by 2024, adding to the difficulties.