As we approach the 4th Quarter of 2016 there is lots of chatter about the perceived slowdown in the Canadian Real Estate market. In reality, Kamloops continues to set records unlike the suggestion that our national, provincial, and municipal economies are slowing down. I’d really like to focus this post on sharing some of the reasons why I believe that things are actually looking really good for us in Kamloops and generally all Canadian when it comes to real estate and the economy.
On November 30th, the British Columbia Real Estate Association's Chief Economist, Cameron Muir, alongside his colleague, Economist Brendon Ogmundson, released a quarterly summary full of very positive and encouraging numbers. For example, following a 1.3% decline in the second quarter, this year’s third quarter showed a promising rebound for the Canadian economy, expanding at a rate of 3.5%. This growth can be attributed primarily to household consumption, as well as an observed rise in disposable income, export growth, and various other third quarter factors. Now, there has been a build-up in business inventories, suggesting that the growth rate will not remain as high as 3.5%, but not to worry – the fall won’t be a big one, as the rate is projected to settle around a trend growth rate of approximately 2% as we make our way through the next few quarters.
Recently, there have been many changes occurring around us that many of us (myself included) feel might impact our economy. On a national level, the uncertainty introduced by the election of Donald Trump has impacted markets, but on the bright side, some are saying that once his administration stabilizes and starts bringing some of their plans to life, there may be a surge in the US and thus for us on the north side of the 49th parallel.
Back here in Canada, the recent approval of the Trans Mountain and Line 3 pipelines are going to boost the economies in our oil-producing regions as the cost of the commodity climbs. Even closer to home for myself, our team at River City Realty, and all of you in the community, Kinder Morgan's Trans Mountain project approval will directly benefit the City of Kamloops, as the pipeline will pass right through town and bring new workers (along with their spouses and families) that are in need of a place to live. This population influx will boost the economy as a whole, and will undoubtedly set the real estate market on fire.
All in all, I truly believe that things are looking pretty good for us as citizens of Kamloops and of Canada, and these numbers only make me even more confident that though things may feel slow right now, there is no need for worry or despair. We just need to stay calm, be patient, and remain resilient through this “cold patch”, as we Kamloopsians do best!
If you would like more information on the Kamloops Real Estate Market or have a comment about this post please don’t hesitate to contact me by email at Vince@TeamCavaliere.com or on the phone at 250.374.1925