Where is our real estate market going to this year

I always like to read through economists’ forecasts and see what their predications are for the coming year. Generally, I find most are predicting a slower start with a strengthening toward the end. BMO, being the most optimistic, is forecasting a BC GDP growth rate at two point four percent. Why does any of this affect real estate on the Sunshine Coast? We are products of the headlines. If the headlines predict doom then we believe it will happen. So buyers are cautious or will do nothing waiting to catch the bottom. When headlines talk about the market going up, it has already happened. So, I like to keep an eye on trends in order to do my best in advising my clients.
There will be challenges for the economy in 2013, including the second fiscal cliff for the United States, in which the Republicans and Democrats will have to agree to raise the federal debt ceiling in order to manage. Europe remains a concern, but some believe 2013 will see an improvement. China’s economy is also expected to pick up. Closer to home, we have a provincial election this spring (which is always a distraction for buyers) and a strike mandate for our local mill. With some of these things behind us, we should see some increased sales activity for 2013.
Hopefully we will see an improvement with BC Ferries or some clear direction once the report is tabled. With the federal ship building contract ramping up this year, we should see some families moving to the Coast and maybe some spin-off contracts to local businesses.
Did you know that at the height of the last sellers’ market, we only saw a two point six percent increase in our population. Right now, I predict that we are at either a zero or a negative growth rate, similar to 1999 before the last run of the seller’s market. A strong economy means increased job growth, with families moving to the Coast and seniors selling their family home to downsize.
One new family purchase on the Coast can have a domino effect, with multi sales stemming from this one sale. In short I believe 2013 will be an improvement on 2012, but price will still be king
This is the time to invest with the record low interest rates in this beautiful place we live