Prices to rise through 2011, says Genworth report
Anne Howland
Province
OTTAWA — Baby boomers leaving their “empty nests” for more convenient, smaller homes near shops and restaurants will keep the price of condos in major Canadian cities buoyant over the next several years, a new report shows.
According to the Summer 2007 Metropolitan Condominium Outlook released yesterday by Genworth Financial Canada, demand for condos will ease slightly nationally, although new construction and resale activity will remain high by historical standards.
The outlook reviewed resale condo markets in Quebec City, Montreal, Ottawa, Toronto, Calgary, Edmonton, Vancouver and Victoria, which all registered price growth in 2006 and are forecast to continue to grow this year and through 2011.
Demand from boomers over age 55, as well as first-time buyers looking for affordable housing alternatives, will keep price growth steady, the report said.
“The record number of baby boomers will help maintain demand for condos in markets across the country, keeping price growth steady,” said Peter Vukanovich, president, Genworth Financial Canada.
Census figures released in July by Statistics Canada show the number of people aged 55 to 64, many of whom are approaching retirement, is at a record high of 3.7 million.
© The Vancouver Province 2007
