Vancouver condo prices to grow 21% by 2010: forecast

Strong demand will drive steady price increases in the Vancouver condo market through the rest of the decade, according to new data released today by Genworth Financial Canada, a subsidiary of Genworth Financial, Inc. Genworth's Metropolitan Condominium Outlook report forecasts Vancouver condo price growth to remain steady through to the end of the decade (full report).

The data compiled in the Metropolitan Condominium Outlook by Genworth shows that over the next four years, Vancouver condo demand is expected to slow to balance with supply, although a correction is not expected. After seeing price growth averaging 17.1% in 2006, Vancouver condos will rise about 6.2% this year and average 4.4% annual growth through 2010.

"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 Peter Vukanovich, president Genworth Financial Canada.

The Metropolitan Condominium Outlook reviewed resale condo markets in Montreal, Ottawa, Toronto, Calgary, Edmonton and Vancouver based on data from the Conference Board of Canada. New condo prices were not included. The good news is that there is no end in sight to the current cycle of strong demand.

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.

	Avg condo prices 2006	Avg condo prices 2007 (forecast)	Avg condo prices 2010 (forecast)
Montreal	$169,899	$177,015	$200,063
Ottawa	$177,267	$184,772	$206,587
Toronto	$239,816	$247,303	$280,175
Calgary	$262,456	$294,681	$335,885
Edmonton	$180,367	$213,352	$240,875
Vancouver	$289,344	$307,305	$349,409

Sources: The Conference Board of Canada; Canada Mortgage and Housing Corporation; Canadian Real Estate Association.

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