BC Real Estate Association Predicts a Year of Growth

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