Genworth Financial Canada report shows good opportunities for first-time homebuyers in Ontario's 2007 housing market

    Latest Housing Outlook shows easing of price pressures in Toronto and

    TORONTO, June 21 /CNW/ - The pace of increasing housing prices in Ontario
will ease in 2007, but the provincial market will remain strong and provide
good opportunities for first-time homebuyers, according to a report issued
today by Genworth Financial Canada, The Homeownership Company, a subsidiary of
Genworth Financial, Inc. (NYSE:  GNW).
    The Summer 2007 Metropolitan Housing Outlook reveals that slightly lower
demand in 2007 will reduce the rate of price increases across Ontario in 2007.
    New homes are forecast to increase in price by 3 per cent across Ontario
this year. Resale homes are forecast to climb 3.4 per cent. Price increases
have been moderating in Ontario since 2004, when new homes rose 5.1 per cent
and resale homes rose 8 per cent.
    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.
    "With the rapid pace of price increases over the last three years,
affordability has been stretched in some communities, but now we're seeing
what looks like more manageable growth over the next half-decade in what is
still a great housing market," said Peter Vukanovich, president of Genworth
Financial Canada. "Greater affordability translates into greater opportunities
for first-time homebuyers to get into the market and begin building equity in
their own homes."

    Toronto at a glance

    In Toronto, new home prices are expected to rise 2.7 per cent in 2007 to
an average $518,401. Toronto new homes rose 5.9 per cent in 2004, 4.5 per cent
in 2005 and 3.8 per cent last year. Looking ahead, Toronto new home prices are
forecast to climb 3.3 per cent on average from 2008-2011.
    Growth in Toronto resale home prices is forecast at 5.3 per cent this
year to $377,709. Toronto resale home prices grew 7.5 per cent in 2004,
6.3 per cent in 2005 and 4.8 per cent last year. Looking ahead, Toronto resale
homes are forecast to increase in price by 4.4 per cent annually from

    Ottawa-Gatineau at a glance

    In Ottawa-Gatineau, new homes are forecast to increase 3.5 per cent to
$355,171 this year. New home prices in the capital grew 6.6 per cent in 2004,
4.6 per cent in 2005 and 3.1 per cent last year. In future, Ottawa-Gatineau
new homes are forecast to increase 3.2 per cent on average from 2008-2011.
    Ottawa-Gatineau resale homes are forecast to climb 4.9 per cent this
year, coming off hikes of 8.9 per cent in 2004, 4.3 per cent in 2005 and
3.8 per cent last year. In the longer term, the region's resale homes are
forecast to grow in price by 3.9 per cent annually from 2008-2011.

    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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