July 2010 BC Economic Fundamentals

[Amber]

New York Times went house hunting in Vancouver and found "low-end houses" in Kits go for $1.1 million

VANCOUVER — The New York Times website features an article today titled House Hunting in Vancouver, which found "low-end houses that need work" cost over $1 million in such Vancouver neighbourhoods as Dunbar and Kits.

The article featured a one-bedroom Gastown loft apartment in a renovated former industrial building, the Alexis, listed for $1.05 million ($996,000 US).

Read full article here

 

[Amber]

China`s latest export: home buyers

Half a world away, a handful of Chinese citizens are feverishly planning a Canadian real-estate shopping excursion.

A farmer, an engineer, a furniture maker and a caterer are among the 30 hopeful investors who have paid $5,500 each to take a real estate tour of Toronto and Vancouver in August. This isn`t about tourism: Each of them expect to drop at least a half-million dollars on downtown condos during their 10-day visit.

While Chinese investors in Canada are nothing new, this delegation is thought by those in the industry to be one of the largest to travel in one group. The trip was put together by Ricky Zhang of TransAsia Investment Partners, a Chinese company that was created to help residents buy properties abroad, particularly in Canada.

Read full article here

 

[Amber]

B.C. is homebuyers` territory

Active listings sit at the highest level since March 2009, economist says

When Maple Ridge`s Monika Novosadova went house hunting this spring, she faced an embarrassment of options, looking at 28 homes before putting an offer down on a three-bedroom, single-family home at the end of June.

And it was a shrewd offer since she faced a buyer`s market, like much of British Columbia in June, with rising inventories and declining sales putting home-hunters more in control.

Read full article here

 

[Amber]

Rental-housing plan turns into lightning rod

Program creates needed rental units, city official says

The rental housing construction program at the centre of Vancouver Mayor Gregor Robertson`s outburst last week isn`t limited to the West End, where two tall towers have been proposed on non-residential properties.

The Short Term Incentive for Rentals concept, a two-year program developed last year by city council to encourage construction in general and rental units in particular, has so far attracted proposals for 865 rental units in 10 projects scattered through the city.

The otherwise uncontroversial program has become a lightning rod for criticism, primarily because of the two tower proposals for the West End.

One, at 1401 Comox St., would see the replacement of a 100-year-old church building with a 22-storey tower with 192 rental units. The other, at 1215 Bidwell St., would create 132 units on 20 storeys, of which 49 units would be rental and the rest condominiums. It`s on the site of the old Maxine`s Hideaway, a 1930s-era building that has housed clubs and restaurants, whose facade would be incorporated into the development.

Read full article here

 

[Amber]

Surrey housing complex now Western Canada`s largest solar power development

Greenbrook complex had $21.8-million renovation

METRO VANCOUVER - A social housing complex in Surrey has become Western Canada`s largest solar energy development and model for sustainable housing.

A two-year, $21.8-million renovation of the 127-unit Greenbrook complex is expected to yield a 90-per-cent reduction in greenhouse gas emissions, provide a more comfortable living environment for residents — and extend the life of the government-owned town house complex by 30 years.

Housing and Social Development Minister Rich Coleman said that the 1974-built complex was in poor shape when the province "inherited" it from CMHC.

The foundations were leaking, basements were flooding, windows and walls were drafty, heating systems were aging, roofs needed replacing and the building envelopes needed to be sealed.

Read full article here

 

[Amber]

Shaw Tower`s $12.88 million mansion in the Vancouver sky

The 41st floor of the Shaw Tower on Coal Harbour is a veritable "mansion in the sky" with 7,500 square feet with luxury touches such as Carrera marble in the master bath and 360-degree views.

It will soon test the top of Vancouver`s high-end market with a list price of $12.88 million.

Read full article here

 

[Amber]

Real estate numbers are transitory, but value is forever

The only `news` that matters: the metropolitan population increases 50,000 annually

Real estate news can mean different things to different people. A headline announcing either a dramatic drop or a wild increase in real estate sales will attract a lot of attention.

But the change being recorded is cause for concern or excitement only for those who broker real estate. The news isn`t necessarily a reflection of values, and needn`t necessarily alarm or excite the owners of real estate.

For example, in April, 2009, the number of real estate transactions both declined and increased locally.

Read full article here

 

[Amber]

Apache buys BP`s oil and gas assets in Western Canada, U.S., Egypt for $7 billion

HOUSTON — BP said Tuesday it had reached a deal to sell $7 billion in assets to Apache Corp as the British oil company raises money to cover costs related to the oil spill in the Gulf of Mexico.

Apache is known for buying older, undercapitalized assets from oil majors, and will buy oil and gas properties in Texas, Western Canada and Egypt, and BP will get a $5-billion cash deposit on July 30 as part of the deal (all figures in U.S. dollars unless otherwise noted).

BP shares rose one per cent in after-hours trading.

"We have achieved an excellent price for a set of properties that are worth more to others than BP," Chief Executive Tony Hayward said in a statement.

Read full article here

 

[Amber]

11,000 jobs lost in B.C. due to pine beetle

The current mountain pine beetle epidemic has peaked in most areas of the B.C. interior, but economic impacts to employment will persist for decades to come according to an economic analysis by Central 1 Credit Union.

VANCOUVER — The ravages of the mountain pine beetle epidemic that peaked in 2005 will be felt for years, and forestry-dependent communities without a diverse economy will undergo a population drain, a new report states.

In its latest Economic Analysis of British Columbia newsletter, Central 1 Credit Union forecasts that over the next two decades, the forestry supported population in the B.C. Interior districts affected by the epidemic will decline by 28,700 people, and occupied housing will fall by 11,500 units.

By 2028, forestry jobs in harvesting, silviculture and processing will decline by 11,250 compared to the pre-infestation period, with a further loss of 9,500 indirect jobs.

Read full article here

 

[Amber]

Recovery waning but Canada, B.C. can still build their economies

Canada may have emerged from the recession faster than other developed nations, and its recovery may be more vigorous than in other countries still burdened by deficits and debts.

And it might be true that British Columbia is particularly well positioned to prosper because of its proximity to Asian markets. But let`s not be too smug.

There are risks to this rosy scenario that governments need to consider as they go about the budgeting process.

Read full article here

 

[Amber]

Pine beetle continues to take bite out of towns dependent on forestry

Population of Interior communities expected to dwindle further over 20 years, report says

The ravages of the mountain pine beetle epidemic, which peaked in 2005, will be felt for years, and forestry-dependent communities without a diverse economy will undergo a population drain, a new report states.

In its latest Economic Analysis of British Columbia newsletter, Central 1 Credit Union forecasts that over the next two decades, the forestry-supported population in the B.C. Interior districts affected by the epidemic will decline by 28,700 individuals, and occupied housing will fall by 11,500 units. By 2028, forestry jobs in harvesting, silviculture and processing will decline by 11,250 compared to the pre-infestation period, with a further loss of 9,500 indirect jobs.

Read full article here

 

[Amber]

Horn River oil excites shale gas pioneer

Quicksilver planning to test area`s potential

T he U.S. company that pioneered technology that has unlocked huge unconventional gas plays across North America is probing the B.C. Horn River Basin this summer with a different target in mind: light oil.

Toby Darden, chairman of Fort Worth, Texas-based Quicksilver Resources, said Wednesday oil has been discovered in sufficient quantity to justify further testing on its northeastern B.C. acreage.

"We`re excited about the oil shows we`ve seen. Our cores have shown significant mobile oil saturation in the rock, which means it can move and that`s important," he said at an industry forum in Calgary.

Read full article here

 

[Amber]

B.C. energy auction signals drilling rebound

VANCOUVER -- Energy companies made their biggest bet on the long-term future of Canadian natural gas exploration since the credit crisis began in 2008, putting down $404-million to secure land to hunt for shale gas in northeastern B.C.

The auction in B.C. Thursday was among the largest single sales of exploration land in Canadian history.

The major investment indicates the industry has full shaken off the malaise of the past two years, and is ready to invest in natural gas even though the current price has been depressed because of ample current supplies.

"There`s a lot more confidence - you can see it just walking around town," said Brian Lavergne, chief executive officer of Calgary`s Storm Exploration Inc., which was active in the northeastern B.C. area before selling to ARC Energy Trust.

Read full article here

 

[Amber]

Okanagan real estate market feeling the strain

Experts say buyers can enjoy significant discounts

OKANAGAN (NEWS1130) - The real estate boom in the Okanagan has gone bust. Developers in the area have been slashing prices on new housing developments and prices are now sharply lower from just a couple of years ago.

Read full article here

 

[Amber]

Developers push wave of pre-sales into slowing market

Metro Vancouver developers may have got ahead of themselves with the number of housing projects they are pushing into the pre-sale marketing phase, says a local market research firm.

MPC Intelligence Inc. counted 6,659 units put into the marketing phase between March 1 and July 1, which approaches numbers thrown onto the market during the headiest days of pre-sales in 2007. But the sales are not at 2007 levels.

"It`s a big jump," Jeff Hancock, senior manager at MPC said in an interview.

Read full article here

 

[Amber]

Number of B.C. EI recipients edges up

The number of British Columbians receiving Employment Insurance benefits ticked upward for the third month in a row in May to hit 82,330, Statistics Canada reported Thursday.

That number is 1,140 higher than it was in April. However, it is down almost seven per cent from the number of B.C. residents taking benefits in the same month a year ago.

Read full article here

 

[Ally]

Surrey votes to allow secondary suites city-wide

METRO VANCOUVER - After decades of debate, Surrey has decided to permit homeowners to have one secondary suite in all single-family homes in the city, following an Ipsos Reid telephone poll in which 63 per cent of those surveyed supported the idea.

The move, which received unanimous approval at city council Monday night, brings Surrey`s secondary suite policy into line with that of most municipalities in Metro Vancouver. Delta is expected to go ahead with a similar policy.

Up until now, Surrey has allowed secondary suites only in predetermined zones in the city, mostly in Newton. Yet the city has its share of illegal suites, which are estimated to number as high as 19,000.

Surrey Coun. Judy Villeneuve, who chairs the city`s social planning committee, said the illegal suites have provided affordable housing in the city, as well as mortgage help for new homeowners.

Legalizing the suites, she said, will allow homeowners to offer accommodation to extended families or renters, while ensuring they provide parking spaces and pay their fair share for utilities and taxes.

Read the full article here.

 

[Amber]

Surrey moves to legalize suites

Surrey is gearing up to allow secondary suites in all single family dwellings.

According to a poll conducted this month by Ipsos Reid, 63 per cent of Surrey residents support allowing a suite in all homes. The most supportive community was Newton (65 per cent) and least was South Surrey (57 per cent).

The telephone poll of 1,500 people was conducted between June 28 and July 6 and is statistically accurate to +/- 2.8 per cent.

Read full article here

 

[Amber]

Optimism fades as reality intrudes

The confidence of British Columbia consumers fell sharply in July to align more closely with overall sluggish growth in the economy -- and perhaps the feeling they will be bitten by the harmonized sales tax, the Conference Board of Canada reported Tuesday.

B.C. posted the steepest decline on the board`s index measure, falling 12.5 points to 78.9. The province scored 109.1 in January.

Read full article here