Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,202 in August 2010.  This represents a 36 per cent decline from the 3,441 sales in August 2009, the second highest selling August ever recorded, and a 2.4 per cent decline compared to July 2010.

From a wider perspective, last month’s residential sales represent a 40.4 per cent increase over the 1,568 residential sales in August 2008, a 34.9 per cent decline compared to August 2007’s 3,384 sales, and a 26.6 per cent decline compared to August 2006’s 2,998 sales.

New listings for detached, attached and apartment properties declined 17.5 per cent to 3,750 in August 2010 compared to August 2009 when 4,544 new units were listed.  Total active listings in Greater Vancouver currently sit at 15,421, a 6.1 per cent decline from last month and a 29 per cent increase from August 2009.

“We’re seeing moderate demand, low interest rates and a healthy but slowing stream of supply in our marketplace, all variables that favour those looking to purchase a home,” Jake Moldowan, REBGV president said.  “The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in April.”

Since spring, housing prices have decreased 2.8 per cent compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.9 per cent to $576,597 in August 2010 from $539,600 in August 2009.

“Canada remains an attractive destination for foreign buyers, a fact that continues to affect activity in the Greater Vancouver housing market,” Moldowan said.

Sales of detached properties in August 2010 reached 893, a decrease of 34.7 per cent from the 1,367 detached sales recorded in August 2009 and a 66.9 per cent increase from the 535 units sold in August 2008.  The benchmark price for detached properties increased 8.5 per cent from August 2009 to $795,076.

Sales of apartment properties reached 935 in August 2010, a decline of 36.1 per cent compared to the 1,464 sales in August 2009 and an increase of 26.4 per cent compared to the 740 sales in August 2008.  The benchmark price of an apartment property increased 4.5 per cent from August 2009 to $385,968.

Attached property sales in August 2010 totalled 374, a decline of 38.7 per cent compared to the 610 sales in August 2009 and a 27.6 per cent increase from the 293 attached properties sold in August 2008.  The benchmark price of an attached unit increased 6.6 per cent between August 2009 and 2010 to $489,511.

Click HERE to view the complete August 2010 Statistics Package

* information courtesy the Real Estate Board of Greater Vancouver (REBGV)

Yahoo! and Zoocasa, Canada’s fastest growing real estate search site, today announced the launch of a new application that enables Canadians to access Zoocasa’s online real estate search service directly from their Yahoo.ca homepage.

Now, the more than 17 million Canadians who visit Yahoo! every month will be able to search for a new home, research local neighbourhoods and receive updates about properties that fit their personal profile, all through the Zoocasa.com application on their Yahoo.ca homepage. Combining real-time listing information and mapping technology, Zoocasa.com allows users to personalize their search experience and discover community, demographic and lifestyle information to help them choose the right home.

“Our vision is for Yahoo.ca to be the best guide for Canadians for both their online and offline worlds,” said Laurie Maw, director, Business Development for Yahoo! Canada. “The Zoocasa application is an important addition to Yahoo! Canada’s current line-up of online apps that includes everything from Flickr and Facebook, to links to our Sports and Finance channels.”

Zoocasa offers a variety of real estate search options to Canadians, including searches by region, city, price range, number of bedrooms/bathrooms and property type. Users can also enhance their decision making process by learning about their city and area of choice using online guides and maps.

“We are excited to work with Yahoo! Canada to launch a Zoocasa.com app that gives Canadians another great way to streamline their house-hunting efforts,” said Butch Langlois, president of Zoocasa. “From Vancouver and Edmonton, to Toronto and Montreal, Canadians can find detailed, real-time information about the regions, cities, neighbourhoods and houses they are interested in.”

Zoocasa is a portfolio company of the Rogers Ventures Group. Rogers Ventures is a new source of funding for technology start-ups and a support mechanism for Canada’s innovation ecosystem.

Popular University of Toronto demographer David Foot once said, “Demographics explain about two-thirds of everything.” It certainly plays an important role in our housing market. It’s a simple equation: the more the population grows, the more new households are formed and more housing will be demanded, all other things being equal. A shrinking population, on the other hand, can virtually halt new construction activity and can even result in a ghost town.

BC’s population recently crested the 4.5 million people mark and currently leads all other provinces in the rate of population growth. While the province comprises 13 per cent of the Canadian population, it garners 19 per cent of national population growth.  In fact, all four western provinces have growth rates stronger than the national average. What’s more, BC’s enviable position is further bolstered by the composition of its growing population.

While the natural rate of increase (births less deaths) accounts for about 19 per cent of BC’s population growth, it has little impact on housing demand as individuals born today won’t likely be in the housing market for decades. By far, the largest component of population growth is immigration. More than 70 per cent of the increase in the provincial population is attributable to net international migration which added an additional 51,000 people to the province last year. In fact, from an economic perspective, BC attracts the cream of the crop when it comes to immigrants.  

More than half the investor class immigrants to Canada settle in BC, and three-quarters of them are from China, BC’s top source country of immigrants. In stark contrast, Ontario attracts more than half the refugee class immigrants that come to Canada, with just 7 per cent destined for BC. So immigrants to BC are likely to have greater financial resources than immigrants to Ontario.  Some, as in the case of many newly landing immigrants on Vancouver’s Westside, have significant wealth. 

BC is also in the number one slot in its share of migrants originating from other provinces. The popularity of Alberta as the go-to employment province has waned along with the downturn in the oil patch. Over the last three quarters, 5,000 more people left Alberta destined for another province than arrived. Coincidently, BC was the top destination for inter-provincial migrants over the same period.

What matters is that a growing population helps underpin housing demand and price levels. It also supports expansion of the housing stock through new home construction, not to mention the jobs that go along with it. A growing population can help smooth out the oscillation of the business cycle by bolstering consumer demand during a slowdown, as well as set the stage for a more robust recovery. The long-term investor as well as armchair analyst can benefit from an understanding of a region’s population dynamics. Even the age-specific components can be revealing. For example, approximately 40 per cent of all home sales through the Vancouver Island Real Estate Board were retirees last year. Now that’s impressive!

* Source: Cameron Muir, Chief Economist with the British Columbia Real Estate Association (BCREA)

The Canadian Real Estate Association (CREA) says national home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.

Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards was down 6.8 per cent on a month-over-month basis in July. The national decline was smaller than the previous two months, as July sales in the Prairies and Quebec came in on par with June levels. Declines in British Columbia (-14.1 per cent) and Ontario (-8 per cent) accounted for 85 per cent of the change in national activity in July.

Actual (not seasonally adjusted) national sales activity was 30 per cent lower in July 2010 compared to last year’s record July. Year-to-date transactions are still up 5.6 per cent compared to the first seven months of last year, although this gap is expected to continue to shrink as the year progresses, since activity rose sharply over the second half of last year, reaching levels that are unlikely to be matched in the final five months of 2010.

New supply continues to adjust to lower demand. The seasonally adjusted number of new residential listings on Canadian MLS® Systems declined by 7.2 per cent in July 2010 compared to the previous month. This is the third consecutive month-over-month decrease, and the steepest in more than a decade. Since reaching their most recent peak in April, new listings have fallen 17.5 per cent. 

The declining trend in new listings will help maintain the balance between supply and demand, and temper home price volatility. The national sales-to-new listings ratio, a measure of market balance, has held steady between 48 and 49 per cent for the past three months, which is characteristic of a balanced market. Read More

Federal, Municipal and Corporate Grants and Programs have saved BC property buyers and owners thousands of dollars.  We’ve listed the Top 21 Grants and Rebates available to qualifying property buyers and owners.

1. Home Buyers’ Plan

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time.
Canada Revenue Agency www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box.
1.800.959.8287

2. GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.
Canada Revenue Agency
www.cra-arc.gc.ca. Enter ‘RC4028’ in the search box.
1.800.959.8287

3. BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7% of the 12% HST) paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250.
http://hst.blog.gov. bc.ca/faqs/new-housing-rebate
1.800.959.8287

4. BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit.
http://hst.blog.gov.bc.ca/faqs/new-housing-rebate
1.800.959.8287

5. Property Transfer Tax (PTT) First Time Home Buyers’ Program

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000.
BC Ministry of Small Business and Revenue. www.rev.gov.bc.ca/rpt
250.387.0604

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The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 42 per cent to 5,784 units in July compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province declined 19 per cent in July from June 2010. The average MLS® residential price climbed 6 per cent to $491,832 in July compared to the same month last year.

“A relatively large number of homes for sale have created the most favourable supply conditions for home buyers in more than a year,” said Cameron Muir, BCREA Chief Economist. MLS® active residential listings were 21 per cent higher in July than at the start of the year on a seasonally adjusted basis. However, with newly listed MLS® residential units now declining, tighter market conditions may emerge this fall.

Year-to-date, BC residential sales dollar volume increased 16 per cent to $24.2 billion, compared to the same period last year. Residential unit sales rose 4 per cent to 48,127 year-to-date, while the average MLS® residential price climbed 13 per cent to $504,281 over the same period.

View the Full Report.

* Information courtesy The British Columbia Real Estate Association (BCREA)

Home sales activity in Greater Vancouver was quieter last month than most Julys over the past decade, with residential sales, prices, and the number of homes listed for sale trending downward in recent months.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,255 in July 2010. This represents a 45.2 per cent decline from the 4,114 sales in July 2009, the highest selling July ever recorded, and a 24.1 per cent decline compared to June 2010.

Looking back further, last month’s residential sales represent a 3.7 per cent increase over the 2,174 residential sales in July 2008, a 41.8 per cent decline compared to July 2007’s 3,873 sales, and a 17.5 per cent decline compared to July 2006’s 2,732 sales.

Read More

The British Columbia Real Estate Association (BCREA) released its Housing Forecast Update for the third quarter of 2010 today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 7 per cent from 85,028 units in 2009 to 79,500 units this year, before increasing 5 per cent to 83,400 units in 2011.

“The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011,” said Cameron Muir, BCREA Chief Economist. “Housing demand has fallen back to earth from its break-neck pace at the end of 2009 and is expected to more closely match overall economic performance over the next 18 months.”   

“A larger inventory of homes for sale has created the most favourable conditions for home buyers in more than a year,” added Muir. “However, the buyers’ market is expected to be short-lived as total active listings peaked in May and are beginning to wane, with more balanced conditions set to emerge in the fall.”

The average MLS® residential price is forecast to climb 6 per cent to $492,800 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $489,500.

For the last few months or so, the media has been discussing the possibility of a housing bubble in BC.  Recently the British Columbia Real Estate Association (BCREA) stated that we now have shifted to a buyers market. This may lead some to consider re-financing their current home, rather than selling in a market that may be overwhelmed with supply and little demand.

 For certain people, this may pose somewhat of a challenge with regards to mortgage qualification. When housing prices start dropping, the appraised value of your home may also be lower, valuation systems may become more conservative, and lenders may become more cautious.

 A small dip in your homes appraised value could affect a borrower in the following ways:

Borrowers who would like a Line of Credit.
A Line of Credit requires that you have a minimum of 20% equity in your home. If the value of your home drops slightly, this could push you over 80% loan to value and change the amount of credit that you would be approved for.

 Borrower wanting to refinance to the maximum 90% loan to value (insured mortgage).
If you wanted to roll some high interest debt into your mortgage, you may not have enough equity in your home to make a refinance as worthwhile as first anticipated.

 Borrower wanting to refinance to the maximum of 80% loan to value (uninsured mortgage).
A small price drop could push you over the 80% loan to value, requiring you to pay default insurance.

 Home values are constantly changing and market conditions can vary dramatically from one location to another. For example the news of the re-opening of a mine can increase the value of a home in a smaller town in a matter of days. The same news could also result in a negative effect if the mine affects a seller’s property in a negative way.

In summary, keep in mind that while your decision to stay put rather than sell due to slow market conditions in your area may be a valid option,  your ability to refinance or take out equity will be greatly affected by the appraised value of your home.

 **Every situation is different and some exceptions may apply.  Speak to a mortgage professional to find out the best option for your situation.

The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent.

The following statement has been issued from the Bank of Canada:
The global economic recovery is proceeding but is not yet self-sustaining. Greater emphasis on balance sheet repair by households, banks, and governments in a number of advanced economies is expected to temper the pace of global growth relative to the Bank’s outlook in its April Monetary Policy Report (MPR). While the policy response to the European sovereign debt crisis has reduced the risk of an adverse outcome and increased the prospect of sustainable long term growth, it is expected to slow the global recovery over the projection horizon. In the United States, private demand is picking up but remains uneven.

Read More

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 23 per cent to 7,722 units in June compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province declined 5 per cent in June from May 2010. The average MLS® residential price climbed 8 per cent to $499,908 in June compared to the same month last year.

“Market conditions have shifted from balanced conditions at the start of the year to a buyers’ market this summer,” said Cameron Muir, BCREA Chief Economist. In June, there was 9.3 months of supply on the market given current sales activity, up from 5.6 months in January 2010. “Tighter credit conditions for homes with secondary suites and low equity home buyers have moderated consumer demand,” added Muir.

Year-to-date, BC residential sales dollar volume increased 31 per cent to $21.4 billion, compared to the same period last year. Residential unit sales rose 17 per cent to 42,343 year-to-date, while the average MLS® residential price climbed 13 per cent to $504,281 over the same period.

Click HERE to view the full report.

* Information courtesy of the British Columbia Real Estate Association (BCREA)

The Greater Vancouver housing market experienced steady activity to begin the summer season. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,972 in June 2010, a decline of 30.2 per cent compared to the 4,259 sales in June 2009, which was the second highest selling June on record.

“Activity in June marked a healthy balance between the near record setting pace of June 2009 and the considerably slower activity witnessed in June 2008, a period of recession as we all know,” Jake Moldowan, REBGV president said.

Compared to June 2008, last month’s sales represent a 22.6 per cent increase over the 2,425 sales recorded that month, but are 30 per cent less than the 4,244 sales in June 2007. June 2010 sales also represent a 5.8 per cent decline compared to the previous month’s sales totals.

Read More

Statistics released by The Canadian Real Estate Association (CREA) show that home sales activity and new listings in Canada declined in May.

Seasonally adjusted home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards declined nationally by 9.5 per cent in May from near-record level activity the previous month. While activity declined in more than 70 per cent of local markets, the lower national figure resulted largely from fewer sales in Toronto, Vancouver and Ottawa.

Actual (not seasonally adjusted) national sales activity was down 4.3 per cent in May from the same month last year. In a departure from the normal seasonal pattern, national activity levels in May were also down from April levels. This suggests that the combination of changes to mortgage regulations and rising mortgage rates pulled forward a number of sales into April that would have otherwise taken place at a later date.

Read More

Vancouver has once again been rated the most liveable city in the world, topping 140 cities, according to a survey from the Economist Intelligence Unit.  The annual survey scores cities worldwide from 0 – 100 based on 30 factors grouped in broad areas such as infrastructure, the environment, culture and education.

How do we rate number one, year after year? Property taxes and what they pay for have a lot to do with it.  Think about our great infrastructure, our award-winning libraries and recreation facilities, playing fields and cycling paths, our abundant parks and green spaces, our well maintained road surfaces, and our new police officers and firefighters. Taken together, these add up to a high quality of life in Metro Vancouver.

Read the Economist Intelligence Unit liveability study at: www.economist.com/blogs/gulliver/2009/06/liveable_vancouver

To help preserve our quality of life, we have to pay property taxes, which go toward funding:

• animal control
• parks/green space
• archives /museums
• police protection
• community centres
• sewage treatment
• emergency plans
• innovative land use planning|
• fire service
• swimming pools/ice rinks
• heritage planning
• safe building regulation
• local road maintenance
• safe drinking water

Read More

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 4 per cent to 7,950 units in May compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province declined 11 per cent in May from April 2010. The average MLS® residential price climbed 7 per cent to $498,294 in May compared to the same month last year.

“A slower pace of home sales combined with an increase in the inventory of homes for sale has quelled upward pressure on home prices,” said Cameron Muir, BCREA Chief Economist. A total of 54,362 MLS® residential listings were recorded in May, up 26 per cent from January on a seasonally adjusted basis. “Moderating market conditions in Vancouver, the Fraser Valley and Victoria are reducing the number of multiple offers as a greater selection of homes for sale lessons competition amongst home buyers,” added Muir.

Year-to-date, BC residential sales dollar volume increased 50 per cent to $17.5 billion, compared to the same period last year. Residential unit sales rose 31 per cent to 34,619 year-to-date, while the average MLS® residential price climbed 14 per cent to $505,468 over the same period.

Click HERE to view the full report.

* information courtesy The British Columbia Real Estate Association (BCREA)

The British Columbia Real Estate Association (BCREA) released its Housing Forecast for the second quarter of 2010 today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to ease back 3 per cent from 85,028 units in 2009 to 82,350 units this year, before increasing 4 per cent to 85,900 units in 2011.

“Eroding affordability will trim home sales by 3 per cent this year despite improving economic conditions and related employment growth,” said Cameron Muir, BCREA Chief Economist. “The push and pull of positive economic growth versus rising mortgage interest rates is expected to keep BC home sales near their 10-year average of 85,569 units both this year and next.”  
 
The average MLS® residential price is forecast to climb 6 per cent to $494,600 this year and remain relatively unchanged in 2011, albeit increasing by 1 per cent to $499,700.

“Strong consumer demand in Vancouver, Victoria and the Fraser Valley was largely responsible for driving the average home price in the province higher over the last three quarters,” added Muir. “However, demand has moderated in those markets and a larger inventory of homes for sale has pulled market conditions into balanced territory, providing less upward pressure on home prices”

The number of properties listed for sale in Greater Vancouver continued to rise in May, while the number of sales showed a year-over-year decrease.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,156 in May 2010, a decline of 10.4 per cent compared to the 3,524 sales in May 2009; 5.1 per cent more than the 3,002 sales in May 2008; and 27.1 per cent less than the 4,331 sales in May 2007. May 2010 sales also represent a 10.1 per cent decline compared to last month’s sales.

Read More

OTTAWA – June 2, 2010 – The Canadian Real Estate Association (CREA) has lowered its forecast for home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations. The revision reflects a weaker than expected start to the year in British Columbia, and recent developments that pulled forward the timing as to when sales are expected to ease in other provinces.

CREA’s previous national forecast was heavily influenced by British Columbia and Ontario forecast trends, and this remains the case in the revised forecast. While sales activity is unfolding as expected in Ontario, the decline in affordability in British Columbia impacted sales in the province during the first quarter.

Additionally, changes to mortgage regulations announced in February are expected to marginally impact activity. The changes prompted some homebuyers to finance their home purchase before the new regulations took effect in April, which pulled forward a number of sales that would have otherwise taken place at a later date.

April also saw the Bank of Canada drop its conditional commitment to keep interest rates on hold until at least July, opening the door to an interest rate hike before then. Indeed, on June 1st, the Bank announced its decision to raise its trendsetting overnight lending rate by 25 basis points to a ½ a per cent, and indicated it expects the rate of growth to slow for consumer spending.

“Interest rates are expected to rise slowly and at a measured pace during a new era of government spending restraint, so home financing will remain within reach for many homebuyers,” said CREA President Georges Pahud.

CREA had previously forecasted sales would remain at elevated levels through the first half of 2010 before easing in the second half of the year and over 2011. While the forecasted trend for activity has not changed in CREA’s revised forecast, it has been pulled forward, with the fourth quarter of 2009 marking the peak of national activity. This has had the effect of lowering the forecast for national activity over the rest of the year and in 2011. Read More

The Bank of Canada raised its target overnight rate today from .25% to .50%, with lenders expected to raise the prime rate by a 1/4 point to 2.50%.   This rate increase will affect homeowners who have variable rate mortgages and lines of credit.  Fixed mortgage rates are dictated by the bond market.

The Bank of Canada is the first G-7 central bank to raise its key policy-setting interest rate coming out of the world economic recession.  This is the first time the Bank of Canada has raised its overnight rate since July 2007.

 “Activity in Canada is unfolding largely as expected.” the central bank said Tuesday,  “The economy grew by a robust 6.1 per cent in the first quarter, led by housing and consumer spending. Employment growth has resumed. Going forward, household spending is expected to decelerate to a pace more consistent with income growth. The anticipated pickup in business investment will be important for a more balanced recovery.”

The central bank also commented on Europe’s financial turmoil by saying “Recent tensions in Europe are likely to result in higher borrowing costs and more rapid tightening of fiscal policy in some countries – an important downside risk identified in the April Monetary Policy Report (MPR). Thus far, the spillover into Canada from events in Europe has been limited to a modest fall in commodity prices and some tightening of financial conditions.”

 “This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.”

 The next scheduled date for announcing the overnight rate target is 20 July 2010

It’s no surprise to learn that economic conditions play a significant role in the housing market. Household financial conditions and confidence are inextricably tied to housing demand.  Changes in the level of employment and wages can either induce additional housing demand or reduce it, while concern for job security can cause households to delay major purchases.  In addition, when BC’s economy is expanding faster than other provinces, the associated labour demand can attract an inflow if migrants, increasing the number of households in the province and the amount of housing demanded.

Now that the recession is behind us, demand for labour is again growing with business not only returning existing workers to full-time status, but also beginning to hire new workers to staff expanding operations. The aging population also means that an increasing number of retirements will create a sizable number of job openings that need to be filled. By 2017, more than half of all job openings in the province are expected to result from replacement demand.

While the recession doubled the unemployment rate, it did peak at a lower level than previous downturns and is continuing on a long-term downward trend that will reveal much tighter labour markets in the future. As the recovery strengthens, upward pressure on wages will help underpin consumer confidence and housing demand. A robust economy creates jobs, rising wages, investment returns and stimulates new home construction activity.

However, the trajectory of economic recovery may be tempered by sluggish growth south of the border and in Europe, a high Canadian dollar and rising interest rates. Housing markets are particularly sensitive to interest rates. Over the past two months, the posted five-year fixed mortgage rate has climbed by a full percentage point, just the beginning of an interest normalization phase in Canada. Read More