December 2012 B.C. Economic Fundamentals

[Ally]

Rental vacancy rate loosens in Vancouver




Metro Vancouver`s rental vacancy rate climbed 0.4 percentage points to 1.8% in October compared with the same month in 2011, Canada Mortgage and Housing Corp. announced December 13.










That compares with a provincial average rental vacancy rate of 2.7% in October, up from 2.4% in October 2011.




Not all regions saw a loosened vacancy rate, however.





Read the full article here.

 

[Ally]

B.C. poised for global prominence as liquid natural gas exporter




British Columbia could emerge as the world's second largest exporter of liquid natural gas if all its proposed LNG projects are developed, a Conference Board of Canada report suggests.




In the short term, Canadian gas production is expected to decline due to low market prices and a glut of cheap United States gas. This is deterring drilling activity all over North America- which is bad news for B.C.'s treasury because it means less royalty revenue to be collected by the province.





Read the full article here.

 

[Ally]

Lumber prices jump with housing market recovery




With lumber prices on the rise, analysts are watching whether the commodity could cause a logjam in the recovery of the housing market.




Housing prices have risen for six months in a row, according to the latest data from the S&P/Case-Shiller home price index, signaling that the country is recovering from the housing bubble burst about six years ago. Along with the housing market, the logging industry is has also rebounded strongly since the recession, said Robb Granado, analyst with financial analysis firm Sageworks.





Read the full article here.

 

[Ally]

Investment in Canada's natural gas sector to rival oilsands





Canada`s natural gas sector could emerge as an investor magnet surpassing interest in the oil sands over the next two decades, The Conference Board of Canada forecasts show.




Natural gas could attract as much as $386-billion in investments by 2035 and create 3.2 million person-years of employment (or an average of 131,460 jobs annually), says the Conference Board of Canada in a new report. This compares to $364-billion investments expected in the oil sands and equal job growth during the period, according to an earlier Board study.







Read the full article here.

 

[Ally]

Vancouver real estate slowdown helps sink national forecast




VANCOUVER ` The slowdown in Vancouver`s real estate market is one factor leading the Canadian Real Estate Association to cut its sales forecast for this year and next on Monday.




Vancouver`s sales numbers dropped 27.6 per cent ` the second biggest drop in the country behind Halifax ` in November 2012, compared to the same month last year, after tighter lending rules that came into force this summer. The average price is down 6.3 per cent for the same period to $682,215, while the MLS home price index is down 1.7 per cent from a year ago. The average price reflects the mix of sales, while the HPI reflects price changes for typical homes.





Read the full article here.

 

[Ally]

'Bumpier' landing seen for Vancouver real estate




The slowdown in Vancouver's real estate market is a major factor leading the Canadian Real Estate Association to cut its sales forecast on Monday for this year and 2013.




Vancouver sales dropped 27.6 per cent - the second-biggest drop in the country behind Halifax - in November compared with November 2011, after tighter lending rules came into force this summer. The average price is down 6.3 per cent for the same period to $682,215, while the MLS home price index is down 1.7 per cent from a year ago. The average price reflects the mix of sales, while the HPI reflects price changes for typical homes.





Read the full article here.

 

[Ally]

2013 Vancouve real estate forecast




December always brings out the crystal ball to predict the next year`s real estate market performance. So, if we make it through December (assuming the Mayans were wrong), here is what I`ve cobbled together for a 2013 outlook.




We`ll continue to see slower-than-average sales in December. Smart sellers should get an earlier start to the spring season and list their homes in January and February instead of after March. Houses will take longer to sell, and anyone waiting for the `spring market` will be looking at another general softening of prices.





Read the full article here.

 

[Ally]

Rent up, vacancy down in Prince George



The average rent in Prince George has been on the rise as vacancy rates have declined, according to a Canada Mortgage and Housing Corporation report.





As of October, the vacancy rate for all types of accommodation was 4.0 per cent, down from 5.1 per cent during the same month last year, and the average monthly rent was $692, compared to $678 the year before.





That said, looking strictly at three or more bedrooms, the vacancy rate rose to 5.6 per cent from 4.9 per cent, although that did not stop rent from rising to $827 from $800.





Read the full article here.

 

[Ally]

Prince George building permit value hits $4.9 million in 2012





Building permits for $4.9 million worth of work were taken out at city hall last month.



That's well up from just under $2 million last year and just under $3 million the year before.





The year-to-date total stood at $110 million, up from $96 million last year but down from $129.6 million by the same point in 2010.





Read the full article here.

 

[Ally]

Selling fewer luxury homes leads to real estate decline


Fewer houses being sold in the most expensive districts of the city contributed to a 31.7% decrease in the dollar value of home sales last month in the greater Vancouver area.




Figures from the Canadian Real Estate Association show sales of $1.21 billion in Vancouver during November. That compares to $1.77 billion in November 2011.




Cameron Muir, chief economist for the British Columbia Real Estate Association, said home sales have been declining in Vancouver all year. The average benchmark home price in Vancouver was $596,000 in November, a 1.7 % drop from the same month last year.






Read the full article here.

 

[Ally]

Gateway Pacific Terminal in Whatcom, Washington



Gateway Pacific Terminal will be a multi-commodity, dry bulk cargo-handling facility on nearly 1,500 acres in Whatcom County, Washington, with development occurring on about one-quarter of the site. The shipping, stevedoring, and warehousing facility ` to be the largest on the West Coast of the U.S. ` is the latest innovation of SSA Marine, a Northwest company that is a global leader in maritime services.





Gateway Pacific Terminal will provide a highly efficient portal for American producers to export dry bulk commodities such as grain, potash, and coal to Asian markets.





Located at Cherry Point, just 17 miles south of the Canadian border, the site`s naturally deep water will accommodate the most efficient ships without the need for dredging. SSA Marine is working with environmental agencies to tailor environmental safeguards for the marine habitat.





Read the full article here.

 

[Ally]

Multi-million dollar BC jobs program has relocated just over 100 people




A $3-million B.C. government program designed to move unemployed workers in the south to jobs in the north has relocated just over 100 people to date ` some as far `north` as Nanaimo, an island community west of Vancouver.




The program is designed to connect hard-to-employ workers with hard-to-fill construction jobs in northern communities. There were just three placements in September, 37 in October and 64 in November. Workers have been moved to communities from Prince Rupert to Houston, but the majority have gone to Fort St. John and Kelowna.



Read the full article here.

 

[Ally]

Chevron's 50% stake in Kitimat LNG boosts Canada's natural gas prospects




Chevron Corp. has acquired a 50% stake in a liquefied natural gas project in Kitimat, B.C. boosting Canada`s prospects of shipping natural gas to Asian markets.




Chevron has a track record of building LNG infrastructure and has a number of projects proposed or under way in Australia, Angola, Nigeria and Asia.





Read the full article here.

 

[Ally]

High retail vacancy marks downtown Victoria






The city`s downtown retail vacancy rate has more than doubled since 2008, and now sits at about eight per cent.








Tom Thompson is the owner of men`s clothing store W.J. Wilson that`s been selling clothes from the same downtown location since 1862. He sees high taxes as part of a definite problem for small businesses.











Read the full article here.

 

[Ally]

Vancouver real estate buyers waiting for price collapse in 2013 could be in for a long wait




While prospective home buyers appear to be waiting for an ever-elusive real estate bubble to burst in Vancouver, people thinking of selling their homes also appear to be willing to wait.




The most recent numbers show that home sales dollar volumes are down, unit sales are down and average prices are falling in the Lower Mainland.





Read the full article here.