Condo Market Forecast: Montreal and Quebec City.
March 28, 2008 by Montreal Real Estate Blog
Filed under Montreal Market Report
Condo markets in Montreal and Quebec City will post moderate price growth through 2012, offering solid opportunities for first-time homebuyers and feed the need for accessible, affordable housing in Quebec, 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 Montreal’s average resale condo price will rise from $175,555 in 2008 to
$203,591 by 2012, while in Quebec City resale condo prices are expected to climb from an average $134,872 in 2008 to $154,304 by 2012. Prices will increase, on average, 3.5 per cent a year in Quebec City and 3 per cent a year in Montreal between 2008 and 2012.
“Condos remain an affordable and attractive option for first-time homebuyers. With the average price for a detached home in Quebec expected to exceed $269,000 this year, the condo market remains an important entry point for first-time homebuyers,” said Peter Vukanovich, president of Genworth Financial Canada.
With projected declines in condo starts from historically high levels, Montreal and Quebec City will witness a balancing of supply and demand in both the resale and new condominium markets in the coming years. The continued growth of the population aged 55 and over in both cities will help drivedemand for condos. The Genworth report, produced with the Conference Board of Canada, concludes that “recently elevated volumes suggest condos are becomingentrenched in most communities.”
“Canada’s condo market remains a good opportunity for first-time homebuyers, and innovative mortgage solutions are making that first-time purchase more accessible and affordable than ever,” said Vukanovich.
“This report underscores the solid value condominiums in Montreal and Quebec city offer to first-time homebuyers looking to get a foothold in Canada’s robust housing market. A condo offers an affordable opportunity to begin to build equity in a home of your own,” said Naureen Durack, Mortgage Consultant, Multi-Prêts Hypotheques.
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.
Sources: The Conference Board of Canada; Canada Mortgage and Housing
The full Winter 2008 Metropolitan Condominium Outlook is available at: www.genworth.ca.
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interesting. vancouver condos make up 75% of all sales and prices are still trending up, inspite of the US financial debacle and some doomergloomers forecasts. CMHC predicts our prices to rise 6-8% this year and 5% next.
[...] In Montreal, Deyanira Bautista takes a look at the condo market forecasts for Montreal and Quebec City. [...]
The success of the Toronto condos is not surprising at all as they are many young couples who want to settle down in the city due to be close to their workplace, and as they can’t afford yet to take huge mortgages the condo is a very convenient option for them. The US is struggling with difficult economic situation and that`s why the prices for a real estate are really low. The growth of unemployed people also contributes to these figures. I agree that for the real estate in Toronto the prices will be rising significantly but we shouldn’t forget about the value of these and that we don`t have to struggle to bargain a good deal for it when it comes to selling.
I like your articles. They come straight to the point and lay down all the information one needs to have in order to build up a satisfactory appreciation of the subject in question.
I also love condominiums. They represent to me one example of the unity of mankind. There’s a feeling of togetherness and security there. You may even spend a lifetime without communicating with your next door neighbour while feeling all the time the warmth of his or her being around.
There’s also the immense affordability a conod offers its users. You can have a swimming pool, a gym and a large garden, things you’d never dream of having alone yet enjoy them all as if you were their sole owner. Think about it!
This is great information for anyone considering moving to Canada to do business there!