Latest outlook shows easing of Toronto real estate prices
Genworth Financial Canada report shows good opportunities for first-time homebuyers in Ontario’s 2007 housing market
From The Condo Guide
The pace of increasing real estate prices in Ontario will ease in 2007, but the provincial market will remain strong and provide good opportunities for first-time homebuyers, according to a report issued recently by Genworth Financial Canada, The Homeownership Company, a subsidiary of Genworth Financial, Inc.
The Summer 2007 Metropolitan Housing Outlook reveals that slightly lower demand in 2007 will reduce the rate of price increases across Ontario in 2007.
New homes are forecast to increase in price by three per cent across Ontario this year. Price increases have been moderating in Ontario since 2004, when new homes rose 5.1 per cent.
The Genworth study, conducted in partnership with the Conference Board of Canada, is based on data from a number of sources, including the Bank of Canada, the Canadian Real Estate Association and Statistics Canada.
“With the rapid pace of price increases over the last three years, affordability has been stretched in some communities, but now we’re seeing what looks like more manageable growth over the next half-decade in what is still a great real estate market,” says Peter Vukanovich, President of Genworth Financial Canada. “Greater affordability translates into greater opportunities for first-time homebuyers to get into the real estate market and begin building equity in their own homes.”
Toronto at a glance
In Toronto, new-home prices are expected to rise 2.7 per cent in 2007 to an average $518,401. Toronto new homes rose 5.9 per cent in 2004, 4.5 per cent in 2005 and 3.8 per cent last year. Looking ahead, Toronto new-home prices are forecast to climb 3.3 per cent on average from 2008 to 2011.
Canada at a glance
With pent-up demand easing, price increases for new and resale homes are moderating. National home price averages are forecast to reach $378,161 (new) and $293,475 (resale) in 2007.
Genworth Financial Canada’s homebuyer data shows there is strong demand for longer-term amortizations and low down payment solutions that make entering the housing market more affordable for first-time homebuyers, as opposed to waiting to build a larger down payment.
“Genworth is committed to introducing innovative products and working with our lender partners to help Canadians buy homes sooner. Extended amortization periods and lower down payment options give buyers flexibility to keep monthly costs affordable when they enter the market,” says Vukanovich. “They can then opt to make biweekly payments, increase monthly payments in the future, or make planned lump-sum payments.”
“The Canadian housing market continues to demonstrate its fundamental soundness. In fact, Canada’s real estate market is a model of fitness and is forecast to remain strong,” says Jim Murphy, President and CEO of the Canadian Association of Accredited Mortgage Professionals (CAAMP).
Genworth Financial Canada, The Homeownership Company, works with lenders, mortgage brokers, real estate agents and builders to make homeownership more affordable and accessible throughout Canada. The company combines global experience in mortgage insurance with technological and service leadership to deliver innovation to the mortgage marketplace.
Genworth Financial Canada issues reports on Canada’s housing market in spring, summer and fall; and on Canada’s condo market in winter and summer; all in conjunction with the Conference Board of Canada. The intention is to educate Canadian consumers, homeowners and future first-time homebuyers. Genworth Financial Canada believes homeowners and homebuyers require up-to-date information about Canada’s housing market to make informed decisions about homeownership, for many the most important investment of their lifetime. Genworth Financial Canada also listens to homebuyers about their challenges and concerns, to become better informed about how they can offer products that help Canadians realize the dream of homeownership.
Additional information about Genworth Financial Canada is available at www.genworth.ca or through mortgage lenders.
The Condo Guide Magazine is an excellent source of housing information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new condominiums across the greater Toronto area.
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Contact Laurin Jeffrey for more information – 416-388-1960
