Genworth Financial Canada report forecasts stability for Atlantic Canada housing market

    Pace of growth in resale prices easing to 3.5 per cent

    TORONTO, June 21 /CNW/ - Buyers looking for resale homes will get some
relief from rising prices while the new home market remains steady across
Atlantic Canada, according to a report issued today 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 in Atlantic Canada for
resale homes, which had averaged 7.4 per cent annually from 2002 to 2005
before easing to 4.5 per cent average price growth last year. 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.
    In 2007, resale homes are forecast to increase in price by 3.5 per cent,
to an average $153,353, which remains very affordable by national standards.
From 2008 through 2011, resale homes in New Brunswick, Nova Scotia, Prince
Edward Island and Newfoundland are forecast to increase an average of
3.2 per cent annually.
    Atlantic Canada's new home prices are forecast to increase 1.8 per cent
in 2007, to an average $269,377. The region's new home market has been
relatively stable, but new home prices did increase 3.2 per cent on average
last year. From 2008-2011, average new home prices are forecast to rise
2.3 per cent annually.
    "The stability in the new home market, combined with the easing of price
pressures in the resale market, means there are good choices available for
first-time homebuyers in Atlantic Canada, at a time when realizing the dream
of homeownership has never been more accessible," said Peter Vukanovich,
president of Genworth Financial Canada.

    Canada at a glance

    With pent up demand easing, price increases for new and resale home
prices are moderating. National home price averages are forecast to reach
$378,161 (new) and $293,475 (resale) in 2007.

    City            Average price of    Average price in    Average price in
                    a new home (2006)     2007 (forecast)     2008 (forecast)
    Montreal                $270,081            $279,607            $288,254
    Quebec City             $183,878            $188,277            $193,864
    Toronto                 $504,949            $518,401            $535,161
    Ottawa-Gatineau         $343,104            $355,171            $367,217
    Calgary                 $434,763            $505,571            $533,352
    Edmonton                $319,637            $388,694            $408,126
    Vancouver               $629,595            $673,706            $708,759
    Victoria                $465,256            $470,717            $489,290
    Sources: The Conference Board of Canada; Canadian Real Estate
    Association; Statistics Canada.

    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," said 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 housing market is a model of fitness and is
forecast to remain strong," said Jim Murphy, President and CEO of the Canadian
Association of Accredited Mortgage Professionals (CAAMP).

    Note to Editors: A PDF of the full report including an in-depth housing
    analysis for Canada, the Provinces and eight metropolitan areas is
    available at

    About Genworth Financial Canada:

    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. Our intention is to
educate Canadian consumers, homeowners and future first-time homebuyers. We
believe 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 make
us better informed about how we can offer products that help Canadians realize
the dream of homeownership.
    Additional information about Genworth Financial Canada is available at or through mortgage lenders.

    About Genworth Financial

    Genworth is a leading insurance holding company, serving the lifestyle
protection, retirement income, investment and mortgage insurance needs of more
than 15 million customers. It has operations in 29 countries. For more
information, visit

For further information:

For further information: Media Contact: Sherri Leclair, (905) 287-5408

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