August 2012 B.C. Economic Fundamentals

[Ally]

Lower sales pull housing prices down in British Columbia





Marcus Arkan, renowned mortgage expert and CEO of Syndicate mortgages has recently shared an in-depth overview of current housing market conditions and prices in the province of British Columbia. Mr. Arkan is hopeful that his analysis will help people in making the right decision regarding buying and selling of homes in the region.




According to Troy Media, one of the most credible news sources in this aspect, July was not a very favorable month for British Columbia. The sales were down and this has also lead to a slow and currently insignificant price decline. According to this report, the trend has remained same in major cities including Vancouver.





RRead the full article here.

 

[Ally]

Vancouver vacancies tip scale in favour of landlords






Tenants can expect to battle for rental units this fall, as the vacancy rate in that expensive city slips to just 1.1 percent, concludes the CMHC in its latest forecast. And as the number of units available continues to decrease, the rental rates are on the up.




The average for a one-bedroom unit is expected to jump from $964 to $1,005 this fall.




Vancouver`s traditionally low vacancy rates have been receding steadily since 2003. Heading into September, students will be scrambling to find apartments. The demand exceeds the supply, and this trend shows no signs of changing.





Read the full article here.

 

[Ally]

Black days ahead for Kitimat?





The beleaguered Northern Gateway pipeline proposal got a big boost on Friday from an unexpected source.





Newspaper mogul David Black's $13 billion plan to build a refinery near the pipeline's planned terminus in Kitimat could end up providing B.C. with some of the benefits its been seeking and reduce some of the environmental fears surrounding the marine aspect of the pipeline.





Black's concept -- a refinery capable of processing the diluted bitumen from Alberta into gasoline and diesel for export to Asian markets -- could generate about 6,000 jobs for the five-year construction phase and another 3,000 permanent full-time jobs when it's operational.





Read the full article here.

 

[Ally]

NDP refinery report is suspect





Earlier this year, the B.C. New Democrats sounded enthusiastic about oil refineries as a way of creating high-paying jobs and weaning the economy from over-reliance on the export of raw resources.




The view was expressed in the April submission by Opposition leader Adrian Dix and his colleagues to the national hearings on Enbridge's proposed oil pipe-line through northern B.C.




The 11-page letter, the most comprehensive expression of NDP policy to be issued over Dix's signature to date, recapped familiar objections to the pipe-line, including the risk of spills and the company's failure to properly engage first nations.




Read the full article here.

 

[Ally]

Surrey named one of top 5 investment cities in Canada






The City of Surrey has been named one of the top five real estate investment cities in Canada by Business Review Canada.




A recently released report by the organization highlighted Surrey's strategic location, increasing business opportunities and population growth, and emphasized the city is a prime location for business. The cities were chosen based on factors ranging from market stability to housing prices, and future growth potential,






Read the full article here.

 

[Ally]

Shell Canada to go ahead with Kitimat LNG projects despite billion dollar Chinese gas investment





Royal Dutch Shell`s decision to invest $1 billion a year in shale gas exploration in China has not changed Shell Canada`s plans to build a liquefied natural gas terminal at Kitimat aimed at the Chinese market.




Despite China`s potential for shale gas production, demand there is expected to outstrip supply, Shell Canada said Tuesday in a statement.




`The exploration and development of shale gas is expected to grow in China and Shell`s investments, largely with PetroChina, are reflective of that growth,` Shell Canada spokesman Stephen Doolan said. `However, the demand for energy in China and throughout Asia is expected to exceed domestic production.






Read the full article here.

 

[Ally]

U.S. homebuilding turnaround spurs Interior log prices




Spruce, pine and fir log prices in the B.C. Interior bucked the global trend of falling prices by rising about 10% compared with a year ago, Hakan Ekstrom, president of Wood Resources International LLC, told Business in Vancouver yesterday.




The U.S. racking up its highest homebuilding statistics in June was a large part of the reason, as was a rise in Chinese demand.




Wood Resources International released a report August 20 that showed that the Global Sawlog Price Index (GSPI) declined for the fourth quarter in a row, to US$82.90 per cubic metre.




B.C. sawlogs ` which tend to be spruce, pine and fir ` have always been priced lower than the global average because of the province's controversial stumpage system ` a phenomenon that has spawned numerous battles with the U.S. over softwood lumber prices, Ekstrom noted.





Read the full article here.

 

[Ally]

Developer perks, improved access, spur Maple Ridge building boom




Two new access-boosting bridges and financial incentives for developers have fuelled a significant rise in development applications and residential real-estate investment interest in Maple Ridge.




Real Estate Investment Network (REIN) president Don Campbell told Business in Vancouver August 14 that Maple Ridge is now the second best city in British Columbia, after Surrey, in which to invest ` and the fifth best in all of Canada (see sidebar).





Read the full article here.

 

[Ally]

Vancouver homebuyers to sit out on fall season




Preparing for the fall is a typical process for many of us. I always look forward to the thought of pulling out the sweaters and buying new boots. My kids are asking about buying school supplies (yes, my children are looking forward to school). Buyers who have long been absent return to the market with the goal of getting into a new house by Christmas ` or will they?




Sales in Vancouver (and the surrounding area) are experiencing a seismic shift. Richmond, South Surrey and White Rock have become a buyer`s market (who would have thought?) The Fraser Valley has seen a nod toward deeper moderation. But generally sales have slowed throughout the area. So, will this new market and changes to supply and demand bring back the seasonal fall buyer?





Read the full article here.

 

[Ally]

Surrey named top investment city




Surrey is one of five cities named as the best real estate investments in Canada.










Online publication businessreview.ca named Surrey, along with Barrie, Ont., Red Deer, Alberta, Maple Ridge and Pitt Meadows as some of the best opportunities for real estate investment in the country.










The report, which indicated it chose to look forward rather than back to determine investment possibilities, used factors such as market stability, housing prices and future growth potential.





Read the full article here.

 

[Ally]

BC Hyrdo poll shows strong public backing for Site C dam





British Columbians have expressed strong support for BC Hydro`s Site C hydroelectric project on the Peace River, according to a poll commissioned by the Crown corporation.




`There`s an underlying level of support for the project and an understanding, particularly these days, that there is a shortage of electricity in the province ` that we are not energy self-sufficient ` and Site C is one of the options for meeting that,` said Dave Conway, community relations manager for the Site C project.






Read the full article here.

 

[Ally]

Vancouver housing affordability falls





While owning a single-family detached bungalow in Vancouver would take up 91 per cent of a typical household's pre-tax income according to an RBC report, a Vancouver mortgage broker doesn't expect a huge drop in prices anytime soon.




Mortgage broker Dave Foran said he expects the market to pick up in September, once the normal summer lull is over.




Read the full article here.

 

[Ally]

Vancouver in a mini buildin boom





VANCOUVER (NEWS1130) - People in the construction industry are beaming at the latest numbers showing how vibrant building activity has been in Vancouver in the last six months.







The value of building permits is up 40 per cent compared to the same time frame last year. A total of $1.1 billion worth of permits even exceeds the amount in 2008, right before the recession.







Read the full article here.

 

[Ally]

Lumber revival sweeps west





West Fraser Timber Co. and Western Forest Products Inc. are leading Canadian lumber producers to the biggest combined profit since 2006 as mills run at five-year highs to feed a U.S. housing rebound and near-record Chinese demand.




Lumber mills in B.C., Canada's leading forestry region, ran at 86 per cent of production capacity in the five months through May, compared with 82 per cent for all of 2011, says the Western Wood Products Association. Lumber futures rose to a 15-month high on Aug. 15 on the Chicago Mercantile Exchange.






Read the full article here.