VANCOUVER (NEWS1130) – Canada’s condominium market is stabilizing, but “pockets of higher risk still exist” in Vancouver and Toronto, according to a think-tank. “A broad-based downturn is unlikely” according to the Conference Board report for mortgage insurer Genworth.
Eight cities are covered in the report, which says “Vancouver’s condominium market is recovering along with the overall resale market, although slowing offshore demand threatens to expose the area’s poor housing affordability.”
It predicts the average Vancouver condo price will rise 4 per cent this year to $279,000 and 4 per cent next year to $290,000 after a relatively flat 2013. It expects condo starts will stabilize this year and re-sales will grow modestly in the medium term.
Senior economist Robin Wiebe with the board says, “Our research has long shown that the strong underlying economic factors in Canada would help most condominium markets achieve a ‘soft landing.'”