BC Population Growth Affects Comox Valley Real Estate

Posted: Sep 08, 2010

Source: Anna J. Team Leader/REALTOR Coast Realty Group CV Ltd.

I just spend half an hour writing out a brilliantly articulate blog to be lost into cyberspace so you will now get the short ‘n sweet version…

Facts:

• Population growth or decline affects housing demand.
• BC leads all provinces for population growth both internationally and inter-provincially.
• Most BC immigrants are coming from China. Most have money.
• BC’s international migration added 51,000 people last year.
• BC grew by a net 5000 people the last three quarters inter-provincially.
• AB shrunk by a net 5000 people the last three quarters inter-provincially.
• Approx 40% of home sales through the Vancouver Island Real Estate Board (*) were retirees.

Affects:

• The Comox Valley won’t see its relative share of Chinese immigrants.
• The Comox Valley will see its share of retirees and families with employment flexibility (self-employed perhaps) coming from Vancouver and Victoria where they will cash out from bolstered real estate values spurred on by immigrant investors.
• Until AB’s oil patch and economy recover the Comox Valley will see fewer of our neighbours migrating west and/or they will be more conservative in their investments.

General:

• The Comox Valley will be competing with Campbell River for retirees more so when the new CR airport expansion is completed.
• Campbell River housing prices more affordable than the Comox Valley however the CR economy has a long history of volatility due to the industry-based nature of the economy. This will affect retirees’ decision on which area to choose less so than it will families.
• Deduction indicates that 60% of home sales are not from retirees. New construction will need to address this.
• Interest rates are affordably low.

Result:

• Above all, consumer confidence is a key factor in the real estate market.
• Selling low is okay if buying low. It’s relative.
• Long term (5yrs+) investment in real estate makes sense.
• Home sellers who plan on buying again when they sell should make buy their next property subject to the sale of their property. This creates activity, buzz, and it only takes the sale of one property in a string of connected sales to domino several property sales thereby creating more consumer confidence. (Ask for details)

Statistical information taken from BCREA: The Bulletin article by BCREA Chief Economist Cameron Muir “The Armchair Analyst: Components of Population Growth.” August 2010. Summations provided by Anna Jorgensen Coast Realty Group Ltd.

Have an inspiring day!

Buyer or Selling, when you’re ready, we’re here for you.

Anna J.