A recent report from the Conference Board of Canada predicts that Canada’s condo sector will not collapse. This has been a topic of much speculation in major Canadian cities like Toronto, where condo development is booming. Some economists have warned that overproduction will affect real estate prices and could pose a risk for the economy. 

However, the report from the Conference Board of Canada, completed for Genworth Canada, argued that population growth and employment gains will assist in keeping the condo market afloat.

Highlights:

• Condo markets in Toronto and Montreal are cooling, but should avoid any major downturns as there is still a decent demand for condos amongst the Baby Boomer demographic. 
• Vancouver’s market is already well into a slowdown and will benefit from population growth and the “rising share of condominium-loving empty-nesters aged 55 or more.”
• Predicts a 0.5 per cent decline in Vancouver resale condo prices this year to $364, 593. Montreal’s average resale price is expected to drop 0.7 per cent to $265, 344 and Toronto is forecast to see its average price remain the same this year at $305,239.

OSFI has held off on further tweaks to underwriting rules, but amid speculation that it may soon spring into action, one representative has assured MortgageBrokerNews.ca the public – including brokers – will be allowed their say.

“If we decide to revise Guideline B-20, we will undertake public consultations,” said OSFI’s Annik Faucher. “No decisions have yet been reached.”

In May of this year, OSFI issued a report on the real estate market, wherein it expressed the importance of regulating interest rates.

“As noted by the outgoing Governor of the Bank of Canada, it is important that regulation and supervision be a strong line of defence to some of the consequences of low interest rates,” Superintendent Julie Dickson said in the May address. “Sustained low interest rates are a major area of focus for OSFI.”