Economic Activity - September 2009

In the current economic climate, government investment is making an increasingly important contribution to economic activity in Northern BC. Publicly-funded capital projects are creating jobs in the construction sector, at the same time helping communities meet infrastructure needs that will enable them to emerge from the economic downturn stronger and more competitive.

Transportation projects represent a large portion of the public investments being made in the region. The BC Ministry of Transportation is investing more than $210M in the northern region this year, including projects on local road networks and along Hwy 97 and Hwy 16. The value of transportation and infrastructure projects currently being undertaken in the Prince George area totals $64M, with a number of significant projects upcoming.

Strategic infrastructure investments in the region will enhance Prince George’s
competitiveness over the long term, and support continued economic development
initiatives already underway.

Through recently announced funding for the Boundary Road Connector pursued by the City of Prince George under the Build Canada Fund, the federal and provincial governments have each committed $7.5M to the $28M project that will be critical for the development of lands to the west of the main runway at the Prince George Airport. The project will advance Prince George’s goal of becoming an integrated and sustainable manufacturing, transportation, supply and service center, and the inland gateway to Asia and North America. The balance of the Boundary Road project costs will come from municipal and private contributions.

The Cariboo Connector project, ongoing since 2005, is another significant transportation investment that has been accelerated in response to federal funding programs. Including the completion of work on the Simon Fraser bridge, more than $110M will be spent on the Cariboo Connector project in 2009. In addition to Phase 1 of the project which saw $200M in priority projects completed, $240M in projects have been approved to proceed.

In addition to significant transportation investments in the North, the federal government has committed $130M toward ensuring that the Northwest Transmission Line (NTL) is built along Hwy 37, providing remote communities in Northwest BC with more sustainable,reliable and affordable energy. The balance of funds required to complete the $404M project are anticipated to be provided by the Government of BC and private sector interests.

The NTL will stimulate significant economic activity upon its completion. It has the potential to generate billions of dollars in capital investment, create thousands of new jobs and open economic opportunities in Northwest BC related to new mining developments and the Prince Rupert Container Terminal.

Prince George will benefit greatly from new supply and service opportunities that will be created for local companies as a result of these major regional infrastructure projects, both in the construction phases and from the longterm economic activity they will promote through stimulating new industrial and resource developments.

The city has also benefited from significant public investment in community projects. Current and upcoming projects like Veteran’s Plaza, Phase 2 of the Gateway Retirement Community, the potential construction of a new RCMP building, and the Cancer Centre for the North will continue to provide stimulus to the construction sector moving forward, and will enhance quality of life through the amenities that the city has to offer.

Economic Statistics

Employment
The number of persons employed in Prince George declined by 500 (1.1%) in August, compared to the previous month. As the decline in employment coincided with a 600 person decline in the labour force, the number of unemployed persons decreased by 100 (1.7%) and the unemployment rate remained unchanged at 12.0%. Comparatively, employment increased 0.4% provincially and 0.2% nationally, month-over-month. In BC and Canada, the labour force grew by 0.5% and 0.3%, and the number of unemployed persons increased by 1.3% and 1.4%, respectively. Consequently, unemployment rates remained unchanged (at 7.8%) provincially and increased 0.1% (to 8.7%) nationally. The city’s employment rate decreased 0.7% (to 64.3%); rates increased by 0.1% in BC and were unchanged in Canada.
(Source: Statistics Canada Labour Force Survey)

Real Estate
In August, 80 single family homes were sold in Prince George, with an average price of $230,541 (only 0.6% lower than the previous month, and 3.6% lower than the same month last year). At the end of August, the year-to-date average price for a single family home was $231,256, 5.1% lower than the same period in 2008; year-to-date unit sales were down 8.8%. Comparatively, year-to-date average prices were down 2.2% in BC and up 0.5% in Canada; unit sales were up 0.6% and down 3.6%, respectively, over the same period last year. Overall, the provincial and national housing markets appear to be in recovery; year-over-year average prices were up 11.7% and 11.3%, respectively, in August. The Canadian Real Estate Association predicts that as average prices dropped sharply over the second half of 2008 and have rebounded since then, year-over-year comparisons are likely to show continued improvement over the rest of 2009.
(Source: BC Northern Real Estate Board; Canadian Real Estate Association)

Housing construction
There were 36 housing starts in Prince George in August (22 single family and 14 multiple dwelling units), up from 15 starts in August 2008. Year-to-date, starts are down 36.1% over last year. In BC and Canada, housing starts continued to be down quite significantly compared to last year, down 38.5% and 27.5% in August, respectively; year-to-date starts are down 65.1% and 41.4%, respectively. There were 19 residential units completed in the city in August, a significant increase over the single unit completed in the same month last year, and there were 259 housing units under construction (184 single family and 75 multiple dwelling units); 57 fewer than in August 2008.
(Source: Canada Mortgage and Housing Corporation)

Building Permits
The City of Prince George issued 62 building permits valued at $7.1 million in August, down 24.8% compared to the same month last year. Year-to-date, permit values were down 31.8% at the end of August compared to the first eight months of 2008. Commercial permits accounted for the majority (51.2%) of the value of total permits issued last month; Residential and Industrial permits accounted for 35.2% and 13.6%, respectively. Comparatively, year-over year permit values were down 30.5% provincially and 28.8% nationally, in July; year-to-date permits were down 46.7% and 26.3%, respectively, at the end of July.
(Source: City of Prince George; Statistics Canada)

Business Licenses
The City of Prince George issued 33 new business licenses in August, 7 more than in the same month last year. There were 7 renewals of existing licenses last month (the same as in August 2008), and year to-date renewals were up 9.0% over the same period last year. The total number of business licenses issued year-to-date is up 10.7% compared to the first eight months of 2008.
(Source: City of Prince George)

Airport Passenger Volumes
29,843 passengers passed through the Prince George airport in August (14,996 inbound and 14,847 outbound), 5.3% fewer than in August 2008. Year-to-date, traffic through the airport has slowed by 13.3%. Comparatively, traffic through the Vancouver airport was down 11.9%, year-to-date, as of the end of July.
(Source: Prince George Airport Authority; Vancouver Airport Authority)

From: Initiative Prince George www.initiativepg.com

One Acre Building Lot in Haldi

MLS# N196021
9687 Birchill Crescent
$54,900

Desirable Haldi! This 1 acre lot is waiting for a new home! The driveway is in and the land has been professionally sloped for drainage. Nonviable trees have been removed and 300 new trees planted. The posts and a partial fence are already in. Design your home to capture the morning sun on this gently sloping property!

Canada a tale of two economies: as export sector staggers, domestic activity booms

By Julian Beltrame OTTAWA

Two reports Thursday reinforced recent trends that show a strong domestic Canadian economy propped up by floor-low interest rates and a recovering housing market, and a weak manufacturing sector hammered by the sky-high dollar and a squeeze on exports.
“What it’s telling us is that low interest rates are working in Canada,” said CIBC chief economist Avery Shenfeld. “We’ve had a number of disappointments on the export front. Where Canada is showing vigour, it’s on the domestic front in response to low interest rates.”
The most recent evidence is the outsized growth in house sales during the third quarter — given the still-weak overall economy.
The Canadian Real Estate Association reported that in real terms, sales of existing homes in the country have never been stronger than in the just-completed third quarter. The association said more than 135,000 units were sold in the July-to-September period — 18 per cent higher than the corresponding period last year before the recession hit.
Meanwhile, Statistics Canada figures released early Thursday showed factory shipments fell 2.1 per cent in August as the activity from the U.S. cash-for-clunkers program, which had artificially spurred auto sales in the United States, subsided.
As well, there are few signs of recovery ahead for the battered manufacturing sector as new orders have practically stagnated and unfilled orders fell 4.2 per cent.
“The fact remains that Canada’s manufacturing sector remains under duress,” said TD Bank economist Grant Bishop, noting the new challenge of a dollar that many expect to regain parity with the U.S. greenback by year’s end.
A perhaps even bigger barrier to a recovery in Canada’s export sector, which accounts for about one-third of the economy, is that consumer demand in the U.S. for what Canada has to sell — cars, parts, lumber and consumer items — isn’t about to pick up any time soon.
A new Conference Board of Canada forecast of the U.S. economy estimated that consumer spending will remain in the dumps throughout 2010, rising only about one per cent from already abysmal levels.
The problem faced by the Bank of Canada is that hinting it may raise rates sooner than next summer, when its conditional pledge to keep the policy rate at 0.25 per cent runs out, will only add fuel to the loonie’s flight and further harm exports and manufacturers. Suggesting that rates will remain as low as they are for a long time feeds into a housing asset bubble and risks inflation.
“The decisive rebound (in home sales) puts the Bank of Canada in a quandary — while the hot housing market cries out for rate hikes, the runaway loonie screams ‘No!’ ” is the way Doug Porter, deputy chief economist with BMO Capital Markets, puts it.
The big banks recently raised mortgage rates by up to a third of a point on many loans, a move that could slow down demand in some markets. However, mortgage rates are still extremely low by historic standards. The Canadian Press

OPEN HOUSE - 7240 Sutley Road

OPEN HOUSE - Sunday, October 18 1-3pm
$214,900

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442 Koala Place - MLS# N195927

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7240 Sutley Road - MLS# N195839

$214,900

A bright and spacious 3 bedroom/2 bath home for your family situated on 5 acres only a few minutes from town. This home has been lovingly maintained and has many updates including paint, carpet, light fixtures, dishwasher, roof and siding. A gas fireplace makes the family room a cozy place to gather, and later you can relax in the jacuzzi soaker tub in the main bath. The beautiful landscaping enhances the charm of this house which even features its own natural pond. The back property is cleared and can be used for your hobby farm activities. This home is exceptionally clean and in move in condition

This property also has a wired single garage and a wired storage shed.

BC MLS Sales Graph