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Vancouver and Victoria Condo Markets
More Accessible To First-Time Homebuyers in 2008
Price growth moderating in both cities through 2012
VANCOUVER (March 26, 2008) – Condominium markets in Vancouver and Victoria will offer solid opportunities in 2008 for first-time homebuyers looking for accessible, affordable housing in the province’s major urban centres, according to new data released today by Genworth Financial Canada, a subsidiary of Genworth Financial, Inc. (NYSE:GNW).
Genworth’s Winter 2008 Metropolitan Condominium Outlook reports that price growth is moderating in both cities this year. While Vancouver condo prices rose 15.4 per cent annually on average over the last three years, prices are expected to rise by just 5.7 per cent this year. In Victoria, prices increased by 14.9 per cent annually on average over the past three years but are forecast to grow just 3.9 per cent in 2008.
Vancouver’s average condo price will rise 3.5 per cent annually to 9,344 by 2012, while Victoria’s average condo price will climb 2.9 per cent annually to 4,298 by 2012.
“Condos in Vancouver and Victoria have long filled the need for relatively affordable housing, but in 2008 they will be more accessible to first-time buyers,” said Peter Vukanovich, president of Genworth Financial Canada. “Despite posting the highest resale prices in Canada, condos are extremely important to first-time homebuyers who wish to remain in British Columbia’s largest cities.”
The Genworth report, produced with the Conference Board of Canada, concludes that “recently elevated volumes suggest condos are becoming entrenched in most communities” across Canada, as they have been for many years in Vancouver and Victoria.
“Vancouver and Victoria’s condo markets continue to remain a good opportunity for first-time homebuyers. And with innovative mortgage solutions available, it makes that first-time purchase more accessible and affordable than ever,” said Vukanovich.
“This report underscores the solid value condominiums offer to first-time homebuyers looking to get a foothold in British Columbia’s robust housing market. A condo offers an affordable opportunity to begin to build equity in a home of your own,” said Hali Strandlund, President of Fisgard Capital Corporation.
The Winter 2008 Metropolitan Condominium Outlook reviewed resale condo markets in Quebec City, Montreal, Ottawa, Toronto, Calgary, Edmonton, Vancouver and Victoria. All eight markets registered moderate price growth in 2007 and are forecast to continue to have moderate growth this year and through 2012.
Average Resale Condo Price by City: Forecast
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City
|
2007 Forecast
Percentage Increase
|
2008 Forecast
Percentage Increase
|
2009 Forecast
Percentage Increase
|
2010 Forecast
Percentage Increase
|
2011 Forecast
Percentage Increase
|
2012 Forecast
Percentage Increase
|
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Quebec City
|
0,133
4.7
|
4,872
3.6
|
9,485
3.4
|
4,898
3.9
|
9,623
3.3
|
4,304
3.1
|
|
Montreal
|
5,555
2.9
|
2,700
4.1
|
9,571
3.8
|
5,040
2.9
|
9,785
2.4
|
3,591
1.9
|
|
Ottawa
|
5,377
5.7
|
8,276
1.6
|
4,778
3.5
|
1,372
3.4
|
8,266
3.4
|
5,231
3.3
|
|
Toronto
|
9,708
7.6
|
6,351
2.9
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2,254
2.5
|
0,623
3.5
|
9,507
3.5
|
8,488
3.5
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|
Calgary
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5,633
22.2
|
6,896
4.1
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5,248
2.9
|
3,768
2.9
|
2,129
2.8
|
0,728
2.8
|
|
Edmonton
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5,881
43.2
|
0,873
6.4
|
5,193
1.7
|
0,748
2.2
|
7,116
2.4
|
4,333
2.7
|
|
Vancouver
|
8,158
11.9
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6,713
5.7
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5,184
2.4
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6,348
3.1
|
7,932
3.2
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9,344
3.0
|
|
Victoria
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2,061
9.4
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2,619
3.9
|
9,399
2.4
|
7,065
2.6
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5,641
2.9
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4,298
2.8
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Sources: The Conference Board of Canada; Canada Mortgage and Housing Corporation; Canadian Real Estate Association. Note: For Montreal, Ottawa, Toronto and Vancouver, resale apartments classified as condos were included; for Calgary and Edmonton, data includes condos that are single-detached units, semi-detached units, townhouse/row units, and apartments that are classified as condos.
The full Winter 2008 Metropolitan Condominium Outlook is available at www.genworth.ca.
About Genworth Financial Canada:
Genworth Financial Canada, The Homeownership Company, works with lenders, mortgage brokers, real estate agents and builders to make homeownership more affordable and accessible throughout Canada. The company combines global experience in mortgage insurance with technological and service leadership to deliver innovation to the mortgage marketplace.
Genworth Financial Canada issues reports on Canada’s housing market and Canada’s condo market in winter and summer; all in conjunction with the Conference Board of Canada. Our intention is to educate and provide useful information to Canadian consumers, homeowners, future first-time homebuyers and governments. We believe homeowners and homebuyers require up-to-date information about Canada’s housing market to make informed decisions about homeownership, for many the most important investment of their lifetime. Genworth Financial Canada also listens to homebuyers about their challenges and concerns, to make us better informed about how we can offer products that help Canadians realize the dream of homeownership.
Additional information about Genworth Financial Canada is available at www.genworth.ca or through mortgage lenders. |
