The
BC Real Estate Association says, after two years of dour economic
growth, a sense of optimism is beginning to break through in terms of
growth for 2014…
BCREA says data from the 4th quarter of 2013 seems to show BC consumers 'awakening from a long slumber of fiscal restraint'.
The BC Commercial Leading Indicator (CLI) rose for the fourth
consecutive quarter, by 0.8-points at the end of last year, to sit at
115.1. On a year-over-year basis, the CLI is up 2.3-percent from the
last quarter of 2012, but the index is still below the all-time high of
116.1 reached in 2007.
BCREA Economist, Brendon Ogmundson, says, "The rising trend in the CLI
signals further strength ahead for the commercial real estate market in
2014." In releasing its fourth quarter report, the association says
despite some positive developments, 2013 was largely a 'forgettable
year'.
"Employment in the province declined for the first time since the
2008-2009 recession and we estimate that provincial GDP grew only
1.6-percent." According to BCREA data, total employment in BC dropped
by 9,000 jobs last year - the unemployment rate stayed low, at
6.6-percent, because of a shrinking pool of those actively looking for
employment.
The real estate association does credits non-residential construction
investment as a bright spot in a relatively weak economic environment
last year. Investment in industrial and commercial construction rose by
8-percent last year, largely due to a 20-percent jump in industrial
construction spending. BCREA expects non-residential construction to
continue to be a significant driver of economic growth this year. "A
number of office projects in downtown Vancouver will either commence or
continue this year and industrial investment, particularly in the North,
continues to be fueled by a resurgent forest industry, as well as
numerous mining, oil and gas projects."
With an improving global economy and gains being made in provincial
employment, BCREA is anticipating the BC economy will grow 2.4-percent
this year, and 2.6-percent next year.
From 250News.com