Fat Lady Tunes Up
Posted January 13th, 2008 in Real Estate, Statistics | 
RBC’s current provincial outlook suggests the B.C’s near term
growth will be around 2.5% in ’08 and 3.0% in 09.
Looks like a Downgrade
Those who operate with a cup half-full will be smiling and saying “I told you so” as the indicators for the long term are swinging in their direction.
The Rationale
- capital spending will peak in a few years
- exports are are taking a hit
- pine beetles are still munching
RBC says “public spending peaked last year.” In the near future it won’t have the same impact as it is leveling and won’t have as much positive influence on growth. Concern is that this will increase the effects on currently slowing trends in forestry and energy.
Lingering Question
Can Real Estate prices in Vancouver be far behind? Some pundits are suggesting the lady will start singing as early as this summer.
RBC’s view of Saskatchewan might apply to Vancouver where “strained housing affordability has pushed into record territory”.
The full report is available here. RBC Provincial Outlook
p>Report and Logo Courtesy of Royal Bank of Canada
