“Toronto has seen a record decade of growth and this report shows that the market remains healthy,” said Peter Vukanovich, president of Genworth Financial.
Toronto is forecast to be the third-strongest market in terms of price growth after Calgary and Edmonton.
The 4 per cent forecast is higher than the estimates of some other analysts who have called for a much more moderating trend or even a correction in the market.
The average price increase for a condo at the end of 2006 was 5 per cent.
Demand for condos are forecast to be strong in the medium term because of a number of factors, including immigration, an aging population, and affordability, said the conference board.
Condo starts in Toronto reached a record high of 16,200 units in 2005.
However, starts are expected to fall by 4.6 per cent in 2006 and another 6.3 per cent this year, representing a more balanced resale market.