Toronto condo prices are expected to jump a healthy 2.50% in 2013. For the average $305,000 condo this equates to an increase of $7,625. These findings were released in a report authored jointly by Genworth Canada and the Conference Board of Canada. The report focused on 8 major Canadian cities and forecasts price increases in all markets except for Vancouver, the countries priciest market.
“This data corroborates our view that the demand for condos in Canada, particularly at the price-point we insure, is well supported by our economy and our population,” said Brian Hurley, Chairman and CEO of Genworth Canada. “For those seeking to own a home affordably in urban centres, condos remain a good option.”
The report sites growing populations and an increase in the 55+ age cohort as a key driver. Other important drivers are employment growth and low mortgage rates. Variable mortgage rates are expected to remain at record lows well into 2013 with some prominent economists even predicting lower mortgage rates to come.
Although short term real estate speculation is a risky proposition, a long term outlook will all but guarantee a solid return on your investment. This report should give comfort to Canadians who’ve been sitting on the fence about their home purchase. With positive price appreciations even a short term purchase will yield positive returns.