A gathering of over 1,100 politicians, business leaders and professionals in the real estate trade gathered in British Columbia this past Thursday for the Urban Development Institute panel. The consensus reached at the gathering was that Vancouver will not see a real estate bubble as long as certain factors continue to keep the status quo. One is that interest rates stay at their current low levels, the other is the economy in the European Union avoids a total melt down.
This past November saw home prices across Canada declining, making it the 12th month in a row to see such year over year decreases. That has again brought the question of a price correction to the forefront.
Over the last three months, housing starts in Canada have seen a decline. If this trend continues it could discourage investors from getting into the rental market. CMHC’s Deputy Chief Economist, Mathieu Laberge noted the decline in a recent report and attributed the decrease to fewer homes, both single family and multi unit types, going up in British Columbia and Ontario. In these two areas the number of presales on homes has gone down, compared to the interest in the latter part of 2010 and through the beginning of 2011.
Home prices throughout Canada saw record high prices this past June, the third in as many months. At the same time the percentage of increases from one month to the next hints at the fact that perhaps the real estate market across the country is starting to cool down. A report by Teranet National Bank, called the Composite House Price Index released this past Wednesday, indicates this may be the case.
British Columbia is seeing an increase in the number of higher paying jobs according to a CIBC report released this past Thursday. That report noted that nearly 90 percent of the opportunities over the last six months were full time. Jobs are also seeing an increase in the fields of finance, manufacturing and utilities.