What will the metropolitan condo market look like in 2011?
March 26, 2011
Genworth Financial Canada came out with their Condo Outlook for 2011. This report looks at all the market trends for major cities in Canada and the economic growth being forecasted for the coming year.
Reasonable economic growth in all of the eight cities that the Report looks at coupled with persistently low mortgage rates provide a good backdrop, but high inventories of unsold new units remain a daunting challenge to new construction, particularly in Western Canada.
While resale conditions are decent according to the Report, they are not exceptional. Measured by the price growth expected in 2011, Vancouver’s market is the strongest and Ottawa’s is the weakest. However, affordability remains a particular concern in the Vancouver market.
Existing sales of condominiums in many markets rose sharply earlier this decade, so their recent weakness seems inevitable in retrospect. Rising sales are expected in only Toronto, Edmonton, and Vancouver this year. Edmonton’s 2.7 per cent growth is expected to lead these modest gains.
2011 volumes are expected to exceed their 10-year average in all four eastern cities.