This is the question…The other day I attended a seminar presented by the GVHBA discussing some of the economic and real estate forecasts for Vancouver. As the Marketing Director for Kerr Construction and Absolute Roof Solutions, I was interested in attending for the obvious reasons of figuring out what our future market will bring us. But, personally I am interested in purchasing my first home as well.
Since September the media has bombarded our heads with negative stories of the “world coming to an end.” The words…Foreclosure…Bankruptcy…Bailouts and Recession have oversaturated our conversations. But how is the economy affecting Vancouver?
We can all admit that there is a slow down in the economy or as Michael Audain, Chairman of Polygon Homes Ltd refers to it as, “A correction in the economy.” Our hot real estate market of buying homes for the last two years could not stay sustainable forever.
So let’s look at the numbers from CMHC: the actual year to date housing starts is down only 5% from the same November period last year (18,481 from 19,491). 2007 was the best year since 1993. They also state that in 2008 $7 billion dollars will be spent in B.C. on home renovations or improvements, with 65% of those dollars spent in the Lower Mainland.
The economist predict that by late spring next year the housing market will pick up again but not quite as significant as the last two years. Following this the economy will stabilize along with the cost of real estate and commodities. This will be due to an increase in consumer confidence that will be aided by the 2010 Olympic Games.
So in the mean time the smart consumers will look at the great opportunities that these times present and realize it is an excellent time to renovate. For instance:
- Trades and Labour are cheaper
- Supplies arrive faster and can find better prices
- Contractors can start your job sooner
- Interest rate decreases
- Tax free savings plans put savings toward your home
- $12, 325 in government renovation rebates
I believe that 2009 will bring tougher times to our industry but Vancouver residents know that they live in the “Best Place on Earth” and would rather renovated that move. There is equity in your home that is better than stocks or commodities because you get to use and live in it while it appreciates. As well 2010 promises to be a monumental moment with the spirit of the Olympic Games showcasing all the great things Vancouver has to offer.
