OPINION: The strength of 12-month home price growth at the national level is mostly explained by three markets: Toronto, Hamilton and Victoria (top chart). That being said, if we consider markets not currently covered by the Teranet-National Bank home price index, outside Toronto and Hamilton we find many markets in Ontario with double-digit house price inflation. No wonder why the Non-Resident Speculation Tax introduced in April by the Ontario government applies not only to Toronto and Hamilton, but also to the Greater Golden Horseshoe (middle table). The effect of that tax on homes sales and home price growth will be assessed over the next few months. But even if this measure curbs speculation, it should not bring home price growth to a halt due to strong fundamentals such as jobs creation, immigrants from other countries and lately a net flow of migrants from other provinces. Low interest rates also contribute to the housing boom (bottom chart).