There is a strong economy, job market and immigration.
CMHC says that growth in housing sales, prices and construction will moderate this year, but remain elevated.
The photo was taken by AshleySER.
Canada's housing agency said Thursday that growth in housing sales, prices and construction will moderate this year from highs, but remain elevated.
The growth in prices will trend closer to long-run averages with sales and starts expected to remain above 5- and 10-year averages, according to Canada Mortgage and Housing Corp.
The markets with low listings will likely lead the price growth.
There are signs of cooling from a hot market where the average cost of a home rose more than 50 per cent over the past two years.
The Canadian Real Estate Association data shows that the average home price fell in March.
The Bank of Canada is expected to raise interest rates to deal with inflation.
Expectations of a more aggressive rate path led to a cut in housing forecasts by the Royal Bank of Canada. Home sales will fall 13 per cent this year and another 14 per cent in three years.
Prices are expected to peak this spring and then weaken over the rest of the year.
The CMHC said that housing affordability will continue to decline.
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