Click here to close now.




















Welcome!

News Feed Item

Soft Landing Still Likely for Canadian Condo Market

Genworth Canada Releases Summer 2014 Metropolitan Condo Outlook

TORONTO, Aug. 13, 2014 /CNW/ - Population, economic and employment growth all point to a stabilizing of the Canadian condominium market, according to the latest Conference Board of Canada condo report commissioned by Genworth Canada.  The Summer 2014 Metropolitan Condo Outlook forecasts that while pockets of higher risk still exist in Toronto and Vancouver, a broad-based downturn is unlikely.

"The report findings align with our view that the condo market is stabilizing and that demographics and affordability continue to drive demand" said Stuart Levings, Chief Operating Officer of Genworth Canada.  "As a result of our prudent underwriting standards, our portfolio quality in this market remains strong and we see value in partnering with our customers to meet the evolving needs of young urbanites.

Despite modest price gains over the next two years in all eight cities studied in the report, increases in average household incomes will help to keep mortgage costs affordable.  Continued growth in immigration, affordability pressures in major cities, and aging baby-boomers looking to downsize are all factors that support continued demand for condominiums in urban centres.

"Our research has long shown that the strong underlying economic factors in Canada would help most condominium markets achieve a 'soft landing'" said Robin Wiebe, Senior Economist at the Centre for Municipal Studies at The Conference Board of Canada and co-author of the report.  "Despite fluctuating sales and listing trends, markets are expected to be balanced across the country, with a slight lean towards the buyer in Ottawa, Montreal and Quebec City."

To view infographic of national highlights click here.
To view infographic of regional highlights click here.

Regional Highlights

  • Québec City's stronger economy is expected to stabilize sales of existing condominiums this year and then lift them in 2015, while condominium starts are expected to fall for the second straight year in 2014; lower inventories of unsold new units should bring builders back to the market in 2015.
  • Montréal's condo unit resales are expected to decline in 2014, before bouncing back in 2015, while rising inventories of unsold new condos will slow the pace of construction
  • Ottawa's condo resales are expected to improve in 2015 and continue rising for several years. Meanwhile condo starts will be flat in 2015 and then rise gradually
  • Toronto's condominium market will cool slightly but avoid the collapse many fear due to healthy population growth, a solid economy and the desirability of downtown living
  • Calgary enjoys excellent condo affordability due to its healthy average household income (the highest of all eight cities studied) and relatively modest condo prices.  The city's good economy is boosting near-term resale volumes and price growth while ongoing economic and income growth will maintain Calgary's housing requirements over the following years.
  • Edmonton's strong economy lifted condo sales sharply in 2013 and will keep them growing modestly over the next few years. While condominium starts are forecast to pull back in 2014, following very large jumps in 2012 and 2013, they are expected to grow moderately over the rest of the outlook
  • Vancouver's condominium market is recovering along with the overall resale market, although slowing offshore demand threatens to expose the area's poor housing affordability. Condominium resales will grow modestly throughout the medium-term, as will starts after they stabilize this year.
  • Victoria is expected to see both transactions and prices grow in the resale market over the next few years after enduring several years of decline; meanwhile, falling starts and completions this year will begin trimming new-unit inventories, setting the stage for modest starts growth.

Resale prices for condominiums are expected to rise in both 2014 and 2015 in all eight cities studied. In both years, Calgary will see the largest growth at 6.6 and 3.5 per cent, respectively, and Montreal the lowest at 1.0 and 1.7 per cent.

Median Resale Condo Price by City: Forecast

City

2013

2014f

2015f

Québec City

$225,185

$227,466

$231,909


2.0

1.0

2.0

Montréal

$264,478

$267,109

$271,769


-1.0

1.0

1.7

Ottawa

$259,171

$263,811

$269,852


-4.5

1.8

2.3

Toronto

$308,729

$316,744

$321,540


1.1

2.6

1.5

Calgary

$254,633

$271,463

$280,975


4.2

6.6

3.5

Edmonton

$217,288

$225,212

$232,619


3.2

3.6

3.3

Vancouver

$367,688

$374,051

$383,434


0.4

1.7

2.5

Victoria

$268,321

$279,027

$290,261


-0.1

4.0

4.0



Italics indicate percentage change from previous year.


Sources: The Conference Board of Canada; CMHC

Housing Time Series Database; Canadian Real Estate

Association; Québec Federation of Real Estate Boards.

Average resale prices are used for Québec City and

Montréal; median resale prices are used for the rest of

the metropolitan areas. Resale prices in Montréal and

Québec City cover all condo styles, not just apartments.




The Metropolitan Condo Outlook is commissioned by Genworth Canada from the Conference Board of Canada. The Report reviews a wide range of condominium statistics and offers an in-depth analysis of the trends in the condominium market for eight large Canadian metropolitan areas: Québec City, Montréal, Ottawa, Toronto, Calgary, Edmonton, Vancouver and Victoria. A copy of the report is available at http://genworth.ca/en/about-us/about-us-publications.aspx.

About Genworth Canada
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada (Genworth Canada), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For almost two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at June 30, 2014, Genworth Canada had $5.7 billion total assets and $3.3 billion shareholders' equity. Find out more at www.genworth.ca.

SOURCE Genworth Canada

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...