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
SYS-CON Events announced today that DataClear Inc. 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. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for ‘normal’ companies without hyper-scale resources. In his session at 17th Cloud Expo, David Cauthron, founder and chief executive officer of Nimboxx, will discuss the evolution of virtualization (hardware, application, memory, storage) and how commodity / open source hyper converged infrastructure (HCI) so...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
eCube Systems has released NXTmonitor, a full featured application orchestration solution. NXTmonitor, which inherited the code base of NXTminder, has been extended to support multi-discipline processes and will act as a DevOps utility in a heterogeneous enterprise environment. Previously, NXTminder was packaged with NXTera middleware to configure and manage Entera and NXTera RPC servers. “Since we are widening the focus of this solution to DevOps, we felt the need to change the name to NXTmon...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
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.
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, 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. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...