The Conference Board of Canada’s Summer 2014 Metropolitan Condo Outlook suggests that the Canadian condo market will stabilize. Commissioned by Genworth Canada, a private residential mortgage insurer, the report cites economic, employment and population growth as factors contributing to this forecast. The report also predicts that the potential for a widespread downturn to occur is remote despite pockets of higher risk in Toronto and Vancouver.

“The report findings align with our view that the condo market is stabilizing and that demographics and affordability continue to drive demand,” says Stuart Levings, chief operating officer of Genworth Canada. “As a result of our prudent underwriting standards, our portfolio quality in this market remains strong and we see value in partnering with our customers to meet the evolving needs of young urbanites.”

According to the report, Toronto’s condominium sector is expected to cool slightly as 2014 continues. However, healthy population growth, a strong economy and a desire for downtown living will help the city avoid a collapse.

From a regional standpoint, research indicates that, going forward, Ottawa, Montreal and Quebec City will be buyer’s markets.

“Despite fluctuating sales and listing trends, markets are expected to be balanced across the country, with a slight lean towards the buyer in Ottawa, Montreal and Quebec City,” says Robin Wiebe, senior economist at the Centre for Municipal Studies at The Conference Board of Canada.

In all eight of the cities studied, which include Quebec City, Montreal, Ottawa, Toronto, Calgary, Edmonton, Vancouver and Victoria, resale prices for condominiums are expected to rise in 2014 and 2015.