Having just come back from the 2011 Fraser Valley Real Estate Board Conference we are all fired up for a solid and stable year ahead.
One of our keynote speakers was Ozzy Jurock a local Real Estate Investor/Educator/Motivator who drilled home his take on Real Estate – mainly – it's never a bad time to buy. Showing us data going back to before the 1960's Ozzy was able to argue that over time Real Estate will always pay off. Whether we are in a rising market, falling market or confusing market it is completely irrelevant as over time (thanks to inflationary pressure) your investment will always grow. He went on to say there are no "good or bad markets" that real estate is and always will be cyclical " ... you can live in it, rent it out, borrow against it for reasonable rates and grow veggies on it ...".
Specifically related to BC some of Ozzy's comments on the current BC Real Estate conditions were as follows:
Canada is now out of a recession – particularly BC and Vancouver. Our high levels if inward migration and population growth are driving our Real Estate values up. Investors are continuing to invest in BC as the rental values to pricing ratio makes sense. Vancouver's stability rating is very high on the global financial scale. Historically low interest rates are maintaining a high level of demand for the 23-35yr demographic. Our recovery will continue but it will be at a slow-moderate pace while the worldwide/global volatility continues. Interest rates in Canada will rise faster than in the US but still at a slow pace with the Bank of Canada raising their variable rates ¼ point by March 1st.
In summary, the key point we have been able to take away from the 2011 conference is that BC is leading Canada in all factors of the economy. Ie: The books expected to be in balance by 2013 whereas Ontario is looking at no balance until 2018 - due to its manufacturing base. Major construction projects in BC are totaling 913 - large scale proposed projects at 563 with permits and housing starts all rising. Export growth up 10% at 2.4bill. Population growth rising with more and more Asian and European investors visiting due to our financial institutions being the strongest in Canada.
When looking at Real Estate – consider that over time down cycles have an average lifespan of 3 years and an average contraction of -17%. For 2011 some analysts are anticipating the Benchmark price of a home to generally rise over the course of the year but what we are experiencing on the ground is this value rise is tied strongly to property type and area.
So if you are curious about your investment and the best time to make a move – we would love to help give you the most current information possible to allow you to make the most informed decisions possible.
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