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Genworth Financial Canada sees good opportunities for first-time homebuyers across Canada
Latest Housing Outlook shows market will be more stable over next 5 yearS
VANCOUVER BC, June 21 /- Price growth will remain strong and be more
stable across Canada's housing market in 2007, according to a report issued
today by Genworth Financial Canada, The Homeownership Company, a subsidiary of
Genworth Financial, Inc. (NYSE:GNW).
The Summer 2007 Metropolitan Housing Outlook reveals that continued
homebuyer demand in 2007 will result in price increases across Canada in 2007
averaging 6.3 per cent for new homes, with a national average price forecast
of 8,161. Resale home price increases are also forecast to average
6.3 per cent, to an average of 3,475 nationally. The Genworth study,
conducted in partnership with the Conference Board of Canada, is based on data
from a number of sources, including the Bank of Canada, the Canadian Real
Estate Association and Statistics Canada.
"With the rapid pace of price increases over the last three years,
affordability has been stretched in some communities, but now we're seeing
what looks like more manageable growth over the next half-decade," said Peter
Vukanovich, president of Genworth Financial Canada. "It's still a great
housing market. Increased affordability translates into better opportunities
for first-time homebuyers to begin building equity in their own home."
The rates of price increases of both new and resale homes across Canada
are down from 2006, when the nation saw new home prices increase 9.7 per cent
and resale home prices jump 11.1 per cent (fuelled largely by Alberta).
Through 2011, Canada's new home price increases are forecast to average
3.4 per cent annually and resale home increases 4.7 per cent annually,
demonstrating more stability in the housing market over the long term.
The report also analyzes data from eight cities in Canada - Quebec City,
Montreal, Ottawa, Toronto, Calgary, Edmonton, Vancouver and Victoria - to look
at new and resale home price increases forecast in 2007 and beyond.
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City Average price of Average price in Average price in
a new home (2006) 2007 (forecast) 2008 (forecast)
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Montreal 0,081 9,607 8,254
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Quebec City 3,878 8,277 3,864
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Toronto 4,949 8,401 5,161
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Ottawa-Gatineau 3,104 5,171 7,217
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Calgary 4,763 5,571 3,352
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Edmonton 9,637 8,694 8,126
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Vancouver 9,595 3,706 8,759
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Victoria 5,256 0,717 9,290
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Sources: The Conference Board of Canada; Canadian Real Estate
Association; Statistics Canada.
>>
Genworth Financial Canada's homebuyer data shows there is strong demand
for longer-term amortizations and low-down payment solutions that make
entering the housing market more affordable for first-time homebuyers, as
opposed to waiting to build a larger down payment.
"Genworth is committed to introducing innovative products and working
with our lender partners to help Canadians buy homes sooner. Extended
amortization periods and lower down payment options give buyers flexibility to
keep monthly costs affordable when they enter the market," said Vukanovich.
"They can then opt to make biweekly payments, increase monthly payments in the
future, or make planned lump sum payments."
"The Canadian housing market continues to demonstrate its fundamental
soundness. In fact, Canada's housing market is a model of fitness and is
forecast to remain strong," said Jim Murphy, President and CEO of the Canadian
Association of Accredited Mortgage Professionals (CAAMP). |
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