The bank says it now expects home prices to rise an average of five to six per cent for the rest of 2014.
In February, the bank had predicted home sales would flatten out, and that the market was about 10 per cent overvalued. It did not give an estimate on how much prices would rise or drop.
TD says its earlier forecast was based on the belief that mortgage rates would creep up this spring, but rates still sit near record lows.
Despite its new forecast, TD said in the long term the real estate market is still expected cool.
Most Popular Stories
- Americans Still Pessimistic Despite Economic Growth
- Labor Day Travel Up, Gas Prices Down
- Bogdanovitch Delivers Laughs With 'She's Funny'
- U.K. Raises Terror Threat Level to 'Severe'
- Nintendo Launching 'Amiibo' Toy-game Franchise
- Canada, Russia Go to War (on Twitter)
- Parra Joins Exclusive Club of Hispanic CEOs
- Apple to Unveil New Items on Sept. 9
- Axxis Solutions Appoints Benites as CEO
- Obama Puts Ukraine Violence on Russia