New information from Genworth Canada suggests that the national condo market hasn’t crashed, but hasn’t seen very much growth either, reports the Financial Post.
According to the Genworth Canada and Conference Board of Canada forecast for 2014, average condo prices rose slightly in the eight markets surveyed, but the increases were barely ahead of inflation. The report also noted that sales will be positive, but even Quebec City, the most robust market, will see only a 4 per cent increase in condo sales.
“Although many commentators view the Canadian condominium market as an overvalued bubble about to burst, we think it is only slightly overheated and enjoys sound economic underpinnings,” Robin Wiebe, senior economist at the Centre for Municipal Studies at The Conference Board of Canada, said in the release.
“As such, markets are likely to cool gently,” Wiebe continued. “To potential homebuyers, monthly mortgage payments, rather than house prices, are what matter and these should remain moderate.”
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