According to the latest Housing Market Outlook Report from RE/MAX, the Canadian condominium market is expected to remain strong and healthy in 2015. Throughout 2014, “condominiums continued to grow their share of the market in many regions,” the report stated. As such, a lack of affordable single-family homes in areas such as Toronto and Vancouver made condos an attractive option for first-time homeowners and young families.
“As affordability becomes an issue in urban centres, first-time buyers are looking towards condominiums both for lifestyle and for value,” said Elton Ash, Regional Executive Vice President for RE/MAX of Western Canada. “Feeling the pressure from tightened CMHC lending criteria, many in this demographic delayed purchasing property in order to continue to save for their down-payment. The new mortgage rules will likely have less of an effect in the coming year as buyers adapt to the new regulations and make the necessary changes to meet the criteria.”
With prices expected to rise across all housing types and regions in 2015, the condominium market is projected to remain stable, especially in downtown areas where affordability meets convenience.
In fact, RE/MAX expects 2015 to be a year full of healthy gains in inventory levels, prices and sales for all housing types. Factors affecting this prediction include:
- Small, but steady increases in employment rates and wages;
- A projected increase of 2.5 per cent for Canada’s overall GDP; and
- Healthy immigration (Canada is expecting between 260,000 to 285,000 new permanent residents in 2015).