Strong job growth seen stimulating demand for housing

十年移民路_

Calgary Herald; CanWest News Service
Published: Saturday, September 02, 2006

It's just one page in a larger report from Canada Mortgage and Housing Corporation entitled "Key factors and their effects on home building," but it pretty much encapsulates what builders and consumers can expect over the next year. Looking at the cross-Canada picture, it lists factors that will impact the national industry and consumers:
7 Y2 _0 h% d% R, ^9 ^
) w' [" o# |7 R" sMORTGAGE RATES
  b% N$ i1 l  X/ \
* |# J" a( M. V- c; h5 y5 fShort-term rates will move higher this year, increasing by between 100 and 125 basis points (100 points equals one per cent). The good news is that most of the increases are already behind us. Longer-term rates will gain 10 to 50 basis points by the time this year is over. In 2007, interest rates in Canada are expected to stay within 25 basis points of their 2006 levels. One-, three- and five-year rates are forecast to be in the 5.75-6.75, 6-7, and 6.25-7.25-per-cent ranges this year and next.

EMPLOYMENT

! P5 z3 J" G' ~3 R2 FWith a record high employment-to-population ratio, the Canadian economy is operating at full employment. Therefore, future job growth will be constrained by population growth. However, the good news for builders is that job growth will continue to stimulate housing demand into next year.

INCOMES
5 c5 X1 ^8 r# f& j
# _$ _, J8 ?/ ^0 I" u  OThe tight national labour market will continue to support strong income growth. Rising incomes will partially offset higher mortgage carrying costs, thereby lessening the anticipated drop in home ownership demand.
0 j7 ~5 O& l5 W
NET MIGRATION

4 v9 k/ m8 q# jIt will be higher this year and next. Because of our oil-fed economy, Alberta will continue to attract thousands of people from other province, while Ontario, Quebec and British Columbia will remain the top destinations for international migrants.
$ N% c& m$ ?2 U/ J9 z
NATURAL POPULATION INCREASE
( v  i; }' `7 q/ v8 q$ G, j1 ^, |
As Canada continues to get greyer, a smaller proportion of people will be in their child-bearing years and the rate of increase will ease up. This, in turn, will lessen demand for additional housing over the longer term.

CONSUMER CONFIDENCE
, R) ], I7 P4 V( A% S, @. w/ G
/ X5 H& M0 I( F4 K6 e2 h+ |The Conference Board of Canada's index of consumer confidence will stay strong through 2007, and that confidence will continue to support demand for home ownership.
9 n. {6 V2 U$ H* e
6 T# X0 h+ z7 a' SRESALE HOUSING

After registering its second-best sales record in history, transactions will back off in 2007 and bring the market closer to a balanced situation. This year will mark the strongest price growth since 1989, thanks to sharp gains in western centres. But through the final half of this year and next, the rate of average price increase will slow.
; Y  g; K/ z, s) q9 n; q0 ?
VACANCY RATES

& }  V3 G- K% |: y0 |- rAcross the country, the growth in rental demand due to increased immigration will be offset by modest rental construction and increased competition from the condo market. As a result, the national vacancy rates for larger centres will edge higher this year.
! _6 {1 {1 D( ?5 k2 y8 z
: r+ D' I* o* G, t( B, K© The Edmonton Journal 2006

苹果鸭梨

good news for buyers.

音响神仙鱼

原帖由 苹果鸭梨 于 2006-9-2 09:38 发表
( n1 D, G  t4 S3 K! Y3 ggood news for buyers.

/ x) u' r2 u" g% w7 r- fUnless you get a raise or get a new job :-)