Never fear, brokers: First-time buyers, retirees and population growth will fuel the condo market in key Canadian markets this year and next, according to Genworth. Although, some more than others.
“Canadian housing markets appear destined to correct, but we think the correction will remain relatively mild, thanks to decent employment growth and continued low interest rates,” reads the Metropolitan Condo Outlook produced by Genworth in conjunction with the Conference Board of Canada. “Regional cracks will appear. But Calgary, Ottawa and Quebec City look set to fare best.”
The report also said average condo resale prices will go up in the next year in seven of the eight metropolitan centres covered by the study.
“Over the next four years, a growing population will provide vital demographic support for the market,” the report said.
Brokers are generally more concerns with any volume decline in sales, but the modest price growth predicted for some markets should help protect broker compensation.
Condo prices in Ottawa will go up 1.8 per cent to $283,606; prices in Quebec City are expected to rise 2.1 per cent to $219,235; Montreal, 2.4 per cent to $272,001; Victoria, 2.5 per cent to $$284, 710; Toronto, 2.5 per cent to $312,352; and Calgary prices jump 2.9 per cent to $246,414.
Edmonton condo prices are expected to make the biggest leap in 2013 by 3.2 per cent raising averages prices to $215,290.
Sales of condominiums have been going up steadily in Alberta, according to Renee Stribbell a mortgage consultant for Axiom Mortgage Solution.
“The new mortgage rule changes coupled with rate increases will continue to drive more people towards condos,” Stribbell told MortgageBusinessNews.ca. “That’s because single detached homes will become un-affordable for many buyers.
“Increasingly, condos are becoming a relatively cheaper alternative to first time home buyers and seniors looking to downsize.”
Vancouver is the only municipality where prices are predicted to drop by 2.0 per cent to $348,152. The city’s unsold stocks are predicted to rise only six per cent, according to Genworth.