Why are parts of the BC Real Estate Market still fragile - some clues in the latest CLI report from BCREA ?

Hi All,

I am constantly trying to get to the bottom of why consumer confidence in the Kelowna and Central Okanagan Real Estate market is the way it is, at the moment.

Having read the latest report on the Commercial Leading Indicator from BCREA today, it is gives some useful clues to help answer to this question!

Whilst the British Columbia Economy is less fragile than some areas, there is clearly no room for complacency, and with employment rates not recovery as well as we would have hoped, it looks we' need to tread a careful road ahead.

I have attached the details of the full report below.

The BCREA Commercial Leading Indicator (CLI) edged down 0.4 points to 108.1 in the second quarter of 2011.

After posting a strong performance in 2010, the index has trended lower since the beginning of the year.
The CLI peaked at a level of 115.5 in the second quarter of 2007 before the onset of the financial crisis pushed it to a low of 97.7 in the first half of 2009.

The downward pressure in the CLI over the past two quarters is mostly a product of weak growth in both retail sales and employment. In addition, provincial manufacturing sales have deteriorated alongside the global economy.

To read more -:

http://www.bcrea.bc.ca/economics/CLIReport.pdf


Kind Regards

Trish Cenci

Tel 250 864 1707

CMHC Predicts Housing Starts will be up in Kelowna during 2012.

Clipped from www.castanet.net

Canada Mortgage and Housing Corporation expects new home construction to increase 30% in 2012.

CMHC forecasts new home starts in Kelowna to reach 1325, compared to 1025 in 2011.

Paul Fabri, Senior Market Analyst for CMHC in Kelowna, says it’s expected to be a very modest increase in housing starts for 2012. Read more at www.castanet.net

 

See this Amp at http://amplify.com/u/a1bscw

The Latest Canadian Housing Trend and Affordability Report from RBC August 2011

Hi All,

RBC Economic's Department has just released its second quarter update for housing affordability in Canada.

It is interesting to note that in general housing affordability is close to historical norms, but in BC figures continue to be skewed by Vancouver.

Here are the details of the report below.

Affordability deteriorated in the second quarter 


Continued gains in home prices and a slight increase in mortgage rates hurt housing affordability in Canada in the second quarter of this year although not enough to cause undue strain in the majority markets across the country. By and large, the share of household budget taken up by the costs of owning a home at current market values remains close to historical norm; however, extremely poor and rapidly eroding affordability in the Vancouver-area market is somewhat skewing the national picture.

To read the full report please go to -: http://www.rbc.com/economics/market/pdf/house.pdf

Kind regards

Trish Cenci

Tel 250 864 1707