Demand for condos supported by demographics

Genworth Canada Summer 2012 Metropolitan Condo Outlook

TORONTO, Aug. 30, 2012 /CNW/ - First-time buyers, retirees and population growth will continue to fuel the demand for condos in major Canadian cities over the next few years, according to a new report released by Genworth Financial Mortgage Insurance Company Canada (Genworth Canada).

Genworth Canada's Summer 2012 Metropolitan Condo Outlook notes that while rising prices for single-detached homes are increasingly driving first-time buyers toward condominiums, retirees aged 55 or more are also drawn to condo living and continue to be pervasive condominium buyers. The report states that over the next few years, a growing population in all eight cities studied, and a rapidly increasing component of the population aged 55 or more, will provide vital demographic support.

Additional factors such as employment growth and continued low interest rates are cited as supporting the condo and housing market overall.

"This data corroborates our view that the demand for condos in Canada, particularly at the price-point we insure, is well supported by our economy and our population," said Brian Hurley, Chairman and CEO of Genworth Canada. "For those seeking to own a home affordably in urban centres, condos remain a good option."

Resales prices for condos are expected to rise next year, in seven of the eight metropolitan centres studied in the report. In Toronto, by 2013, the average resale price of a condo is forecasted to be $312,352, an increase of 2.5 per cent. The highest jump in price will be in Edmonton which will see prices rise 3.2 per cent to an average of $215,290. The only city which is expected to have a drop in prices is Vancouver where condos will average $348,152, a cut of 2 per cent.

The Genworth Canada report, produced with the Conference Board of Canada, reviewed 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.

Average Resale Condo Price by City: Forecast

Italics indicate percentage change.
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 and average prices in Montréal and Québec City include all condo styles, not just apartments.

About Genworth Canada:
Genworth Canada is the brand name of Genworth Financial Mortgage Insurance Company Canada, a subsidiary of Genworth MI Canada Inc. (TSX:MIC), and has been the leading Canadian private residential mortgage insurer since 1995. Known as "The Homeownership Company," it provides default mortgage insurance to Canadian residential mortgage lenders that enables low down payment borrowers to own a home more affordably and stay in their homes during difficult financial times. Genworth Canada combines technological and service excellence with risk management expertise to deliver innovation to the mortgage marketplace. As of June 30, 2012, Genworth Canada had $5.5 billion in total assets and $2.8 billion in shareholders' equity. Based in Oakville, Ontario, the Company employs approximately 260 people across Canada. Find out more at genworth.ca.

SOURCE: Genworth MI Canada