Canadian Real Estate Forecast
In 2007, residential construction in Metro Vancouver alone produced 68,000 jobs, created $8.4 billion in economic impact, generated $3.1 billion in wages, and contributed $1.6 billion in government revenue. And I am not even counting that bloated cash cow, the provincial property transfer tax. Residential construction accounted for 8.5 per cent of the provincial economic output.
Vancouver
housing starts (January to October) are four per cent ahead of the pace set last year, which was the strongest year since 1993.
U.S.
election, some major housing markets were showing signs of stabilization.
Some U.S. municipalities, heavily reliant on development fees to pay the bills, instead of increasing taxes across the general tax base incrementally over time, have now been forced to sell their investments as the development revenue stream has dried up. There's a lesson in that sad scenario for our municipal governments.
And if you purchased a home earlier this year and are worried it might have lost some of its value recently, don't lose any sleep over your decision. Your investment is a home for your family, not some short-term commodity stock. Real estate values come back, and then some.
They always do.
Metro
The year will end with 19,000-plus starts. The forecast for 2009 calls for an easing to 16,500 starts, still a far cry from the meagre 8,203 in 2000.
The Obama factor will play a significant role in the American comeback psyche, which, like the negative news, will spill across the border to us.
Obama's call for change, coupled with a struggling economy, resonated with the electorate -- the highest turnout ever for a presidential election.
If Americans truly believe Obama will deliver the changes necessary to improve their lot in life, that should help -- temporarily, at least -- to calm the troubled waters and improve consumer confidence.
Just before the
American builders tell me they are pressing for housing-stimulus bills, including an enhancement of the newly launched homebuyer tax credit program, and a new program to lower interest rates for the purchase of a new home.
Builders believe both proposals would help to alleviate falling home values, which are at the core of the current economic malaise.
By Peter Simpson/Vancouver Sun