Victoria BC Real Estate - Victoria’s Strong Continued Economic Growth
Victoria’s Strong Economic Outlook
We hear just about every day the negative Real Estate predictions by all sorts of experts. We have mentioned in many of our previous blogs that Victoria is the place to purchase real estate, either it is a small condominium or a large prestigious property.
Victoria has the lowest unemployment rate in Canada at 3.2% and there is help wanted signs every where. When we have had previous market corrections like in 1996,1997…. we did not have a super economy like we have now and that’s why we feel that the correction will be short lived. Let’s compare notes in a year.
A recent article by Carla Wilson of the Times Colonist kind of agrees with what we have been saying for some time now. It reads:
Victoria’s economic outlook calls for continued growth
The capital region is looking at strong economic growth this year and further growth in 2009, a Canadian economic think-tank said yesterday.
The Conference Board of Canada released its report the same day as global markets were rocked by financial woes in the U.S.
“Victoria’s economic fortunes are expected to stay healthy in 2008,” the board said yesterday in its latest Metropolitan Outlook.
Greater Victoria’s GDP is forecast to expand by 3.3 per cent this year, with growth easing to 2.6 per cent in 2009, the board said.
Ken Stratford, Business Victoria CEO, said, “That certainly would be the maximum growth I would see.”
Victoria’s economy is doing well in a number of areas and it’s reasonable to be optimistic about the local economy this year and next, he said.
Although sales have slowed in the local real estate market, prices have not necessarily declined, he said.
Non-residential construction, such as the University of Victoria’s building boom, is expected to offset fewer housing starts in the region, the conference board said. Success in the region’s strong services sector, and robust retail sales are among local economic drivers.
If market upheaval continues, “Then all bets are off,” Stratford said, but added this type of situation usually stabilizes in a few days.
Greater Victoria’s unemployment rate will stay low because “we simply don’t have enough people for the jobs available.”
A shortage of workers is holding some retailers back, he said. Stratford recently went to a popular coffee shop to find it closed at 2 p.m. When he asked the next day what happened, staff said there weren’t enough workers to stay open.
Retailers have told Stratford that labour shortages may force them to close one day on a weekend. “I don’t see that situation turning around.”
Victoria claimed the lowest unemployment rate in the country last month and has experienced strong job growth this year. New jobs plus personal income growth is leading to consumer spending increases, the board said. “Consumers are expected to once again hit the stores.”
Retail sales are expected to follow last year’s “impressive” growth of 6.1 per cent by climbing another 4.9 per cent, the board said.
But Stratford said that a three-per cent cost-of-living increase helps flatten down that growth. “I think very few retailers are jumping up and down right now with glee. Some of them are doing very well, but certainly the downturn in tourism must have hit retailers in the core, not retailers in the region necessarily.”
Sasha Angus, economic development officer for the Greater Victoria Development Agency, welcomes the conference board’s projections, saying, “We are very happy to have that sort of growth again when other jurisdictions are trying to eke out 0.5 per cent.”
The board’s expectations point to, “Growth we think is sustainable. Not the hit and miss you might get in the oil patch or in the manufacturing sector in Ontario,” Angus said.
Strong retails projections, “Speaks to higher than average per capita income for the region compared to B.C. and Canada,” said Angus, adding, that citizens are fairly secure in their jobs and about their future in the region. End of Article.
We would love to hear your opinion about what you think the economic out look is for Victoria, British Columbia and the rest of Canada. Drop us a not below.
If you are buying and are looking for a specific type of property like a small condo or a prestigious ocean front estate, we have the tools to make your search easy.
Cheers,
Bill
Bill Ethier B.Sc - REALTOR®
Properties in Victoria Professionals- Royal LePage Coast Capital Realty
Bill has been a REALTOR® in Victoria since 2006. Originally from the Vancouver area, Bill moved to Victoria to attend the University of Victoria where he received his Bachelor of Science. Not only does Bill have a wealth of real estate knowledge he is also an active member of the community. He is a member of Triple Shot Cycling Club, Island Road Racers and is the Race Director for the Sooke River 10K.
