Growth to continue without any price correction
Gordon Clark
Province
The prices of used Vancouver condos will continue to rise until 2010, says a report released yesterday. After experiencing average price growth of 17.1 per cent in 2006, Vancouver condos will “rise about 6.2 per cent this year and average 4.4-per-cent annual growth through 2010,” said Genworth Financial Canada in releasing its Metropolitan Condominium Outlook.
The firm linked a slower rise in prices to lessening demand more in balance with supply.
“In 2006, Vancouver’s condo market remained as strong as ever and the good news is that growth is forecast to continue without a price correction, so it is still a smart time for buyers to realize the dream of homeownership,” said Genworth president Peter Vukanovich.
The report used Conference Board of Canada data to review resale condo markets in Montreal, Ottawa, Toronto, Calgary, Edmonton and Vancouver. New condo prices were not included.
“The good news is that there is no end in sight to the current cycle of strong demand,” the company said. “This will allow condominium price growth to stay in positive territory across all six markets.
“Vancouver condo prices will continue to lead the nation, followed by booming Calgary and steady growth in Toronto,” it said.
The average Vancouver condo that sold for $289,344 last year will be worth $307,305 this year and $349,409 by 2010.
Among those surveyed, the city with the cheapest average price was Montreal at $169,899. It was expected to rise to $177,015 this year and $200,063 by 2010.
After Vancouver, Calgary had the next most expensive average condo at $262,456 in 2006, which is expected to rise to $294,681 in 2007 and $335,885 in 2010.
© The Vancouver Province 2007