Stable markets, continued low interest rates and strong capital markets will offset possible slow-downs in residential construction and jobs in the coming year for a cautiously optimistic overlook overall.
“There’s going to be a steady real estate market for all of Canada, especially for the major markets of Vancouver, Calgary and Toronto,” said Mark Renzoni, Chief Operating Officer of CBRE Limited. “The market is steady, but it’s not as strong as it was in 2011-2012.”
British Columbia faces a political election later this spring, but Renzoni says it shouldn’t have an impact on real estate since the industry supports both parties getting most of the attention.
Job growth is shaky, but strong capital markets and low interest rates through 2013 and possibly for six months after that should help protect sales.
Condominium development, especially in Vancouver, has been slowing too, but Renzoni says the spring market is likely to pick up. “There will be pockets of strength in residential and condominium development but overall there will be a soft landing.”
Industrial construction, some on a spec basis, is occurring again, so that’s a positive sign.
The outlook for office and mixed use in Vancouver is very positive and well-timed. “The first buildings come on-stream late in 2014 and throughout 2015. Nordstrom’s new location in the old Sears with Cadillac Fairview is gaining momentum for the local retail market. That’s very good for the economic outlook of downtown Vancouver.”
Note: This article appeared on page 33 in the Spring 2013 Real Estate Forum magazine, which can be read at: http://www.realestateforums.com/crefm/docs/!_REF_SPRING_2013_Montreal.pdf.
