Strong demand will drive steady price increases in the Montreal condo market through the rest of the decade, according to new data released today by Genworth Financial Canada, a subsidiary of Genworth Financial, Inc. (NYSE:GNW). Genworth's Metropolitan Condominium Outlook report forecasts Montreal condo price growth to average 4.2 per cent annually from 2007 to 2010.
"It's a good time for Montreal buyers to realize the dream of homeownership in the condo market," said Peter Vukanovich, president of Genworth Financial Canada. "Condo supply has barely kept up with demand and the sales-to-listing ratio remains high, meaning that a correction is unlikely. This cycle should continue through to the end of the decade."
The Metropolitan Condominium Outlook reviewed resale condo markets in Montreal, Ottawa, Toronto, Calgary, Edmonton and Vancouver based on data from the Conference Board of Canada. New condo prices were not included. With no end in sight to the current cycle of strong demand, continued condominium price growth is expected across all six markets. Montreal's average condo price will remain the most affordable of the six cities surveyed, rising from $169,899 in 2006 to $200,063 by 2010.
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Average Average Average
Condo Price Price
Price In 2007 in 2010
City In 2006 (forecast) (forecast)
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Montreal $169,899 $177,015 $200,063
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Ottawa $177,267 $184,772 $206,587
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Toronto $239,816 $247,303 $280,175
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Calgary $262,456 $294,681 $335,885
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Edmonton $180,367 $213,352 $240,875
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Vancouver $289,344 $307,305 $349,409
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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 single-detached units, semi-detached units, townhouse/row units, and apartments that are classified as condos.
The full Metropolitan Condominium Outlook including information on other major cities and detailed analysis of the Canadian markets 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. Additional information about Genworth Financial Canada is available at www.genworth.ca or through mortgage
lenders.
About Genworth Financial
Genworth is a leading insurance holding company, serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers, and has operations in 24 countries. For more information, visit www.genworth.com .