A new report from Canada’s second largest mortgage default insurer, Genworth Financial, suggests first-time home buyers, retirees, and population growth will continue to fuel demand and price growth for the compact living spaces that condominiums offer over the next few years.
The study found that average condo resale prices are expected to rise next year in seven of the eight metropolitan centres studied in the report with the highest increase expected to be in Edmonton where prices could rise as much as 3.2 percent.
Edmonton has the highest expected condo resale price in the next year with prices rising as much as 3.2%
Genworth attributes the increased popularity of condos with first-time buyers to the rising prices of single-detached homes, but down-sizing retirees are also revving up demand.
Employment growth is expected to increase the population over the next few years of all eight cities included in the study and continued low interest rates will contribute to making condos accessible to homebuyers.
Trends in Edmonton, Calgary, Vancouver, Victoria, Quebec City, Montreal, Ottawa and Toronto were studied for the report, which was produced with the Conference Board of Canada.
Are you considering buying a condo?
Remember: Mortgage lenders will include the condo fees as part of your monthly housing expenses which may affect your ability to qualify for a condo mortgage even if the mortgage payment if fairly low.
Be sure to speak to your mortgage associate at First Foundation before you start condo-hunting to know your maximum condo fee as well as your maximum purchase price.