Residential housing prices are expected to continue rising over the next five years, though possibly less this coming year than in subsequent years. CEOs and business leaders on the COMPAS business panel foresee a modest increase of 1.75% in housing prices this year with an overall increase of 5% over the next two years, and an overall increase of 13.9% over the next five years.

Economic uncertainty and the HST in Ontario and B.C. may suppress somewhat inflationary pressures in coming months. But general inflationary expectations, strong economic performance in the west, and population pressures in Toronto as a result of immigration are likely to renew upward pressure on prices after this coming year.

Vancouver, Calgary, and Toronto are apt to have the strongest prices with Ottawa and Montreal having the weakest.

These are the key findings from this past week’s Internet survey of CEOs and business leaders on the COMPAS panel. The weekly business survey is undertaken for Canadian Business magazine under sponsorship of BDO Dunwoody LLP.

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