Tech Leading the Way

The tech industry has a strong foothold in Canada, and that is becoming an important economic driver. An economic impact study commissioned by VIATEC Victoria revealed the tech sector has a $5.22-billion annual economic impact on our region, with combined annual revenue of its 955 companies of $4.06 billion and employing 16,775 people directly. It is expected the sector will achieve combined annual revenues of $10 billion by 2030.

Vancouver has 68,500 tech jobs, up 30.7 per cent from 2012, and 5.9 per cent of the city’s workers are employed in the tech sector.

Source: https://www.timescolonist.com/business/greater-victoria-s-tech-sector-still-booming-but-recruiting-a-challenge-1.23462806 
Source: https://renx.ca/tech-likely-canada-saviour-during-recession-morassutti

Current Inventory

We Realtors® are busy showing listings and demand is evident in the greater Victoria area. Currently, we still have very low inventory compared to the long-term average, and little new inventory came into the market this past month.

As spring weather thaws the rest of our snow and flowers begin to blossom, more listings will come onto the market and there will be more available for prospective buyers.

If you’re thinking of listing your home, now is a great time call me. Let’s discuss your goals and decide how to navigate the market.

BC Economic Growth

The province is coming off tremendous economic growth fueled largely by demand for real estate. The provincial economy charted at an average of 3.2 per cent between 2014 and 2017. The booming real estate market benefited everything from the construction industry to the banks. Both Ottawa and Victoria have introduced measures, such as a mortgage stress test and a foreign buyer tax, respectively, to cool the market, and they are taking effect. The Victoria Real Estate Board published January statistics of 329 properties sold, which is down 23.7 per cent from last year. In February, a total of 421 properties sold, which is 22.8 per cent fewer than the 545 properties sold in February 2018. Between January and February, there was a 28 per cent increase in sales, which is to be expected as we approach the spring market.

Source: https://www.vreb.org/current-statistics

Demand for Housing Slowly Rising

A report from BCREA said that the slow market has seen a rise in the number of homes for sale, which will keep prices flat. Cameron Muir, BCREA Chief Economist, said, “The negative shock to affordability and purchasing power created by the B20 stress test on mortgage borrowers is expected to continue constraining housing demand in the province this year, however, favourable demographics along with continuing strong performance of the BC economy is expected to underpin housing demand over the next two years.” In other words, the average annual residential price is forecast to remain essentially unchanged.

Source: https://www.vancourier.com/real-estate/b-c-home-sales-to-creep-back-up-over-next-two-years-bcrea-1.23644991

Victoria Cycling Network

Transit: Victoria Council has decided to fast track the city’s cycling network to complete 32 kilometres within three years. The first leg of the cycling network, a protected, two-way bike lane on Pandora Avenue between Cook and Wharf streets, was completed April 2017, at a cost of $3.4 million.

The second leg, on Fort Street between Cook and Wharf was completed last May at a cost of $3.27 million. Construction will soon start on a separated bike lane on Wharf Street between Pandora and Humboldt streets at an estimated cost of $4.02 million.

BC Budget February 2019

Carol James released the budget on Tuesday, February 19th. Capital spending in Greater Victoria includes the 600-student expansion of Colwood’s Royal Bay Secondary by September of 2020, about $200 million for student housing at the University of Victoria by 2024 and $64 million for the new health sciences centre at Camosun College.

The announcement of 1,750 units of housing for Indigenous people across B.C. includes a 120-plus-unit project in the West Shore. There’s still $18-million worth of work left on the $85-million McKenzie interchange, which is due to be completed by late fall.

Housing Slowdown

“This is the first housing slowdown that was government induced,” says Peter Kinch “There has been a lot of talk about affordability in our market, so both at the federal level and provincial level, they are looking for ways to deal with this lack of affordability in the housing market.”

The Federal government came in with a two per cent stress test and new mortgage rules, with the BC Provincial government introduced the Foreign Buyer’s Tax and the Speculation and Vacancy Tax. “That has had a bigger impact than anything we’ve seen in years,” says Kinch.

Source: globalnews.ca / bc housing recession report