Government moves to put the brakes on B.C.香蕉视频直播檚 urban housing costs are taking hold and are about to produce the biggest drop in residential construction since 2009, Central 1 Credit Union says in its latest forecast.
The drop in housing investment is projected to be nearly as large as the world-wide recession of 2009, but will not signal a recession in B.C. because of strength in other construction sectors, says , a forecast by the organization representing credit unions in B.C. and Ontario.
Increasing population, new capital investment in public works and the LNG Canada liquefied natural gas project in northern B.C. are expected to keep unemployment low as housing construction slows, Central 1 forecasts.
香蕉视频直播淏.C.香蕉视频直播檚 economy will slow over the next three years as the policy-induced housing market downturn weighs temporarily on growth,香蕉视频直播� the report says.
香蕉视频直播淭he recent slump in housing demand and prices will trigger a sharp contraction in housing construction and the most pronounced drop in broader residential investment since 2009. Growth will trend in a range of 2.0 to 2.5 per cent over the next years and accelerate to 2.8 per cent in 2021.香蕉视频直播�
The federal government香蕉视频直播檚 addition of a 香蕉视频直播渟tress test香蕉视频直播� for bank mortgages in 2018 has required borrowers to qualify their ability to pay if interest rates increase, after a long period of low rates led to personal debt rates rising. B.C. has focused on increased taxes for foreign buyers and second homes in urban areas that have low rental vacancy rates and high purchase prices.
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香蕉视频直播淩etrenchment has been significant in larger urban markets, which will curtail new home activity in 2019,香蕉视频直播� the report states. 香蕉视频直播淗ome sales have fallen to a multi-year low pace.香蕉视频直播�
Central 1 expects that B.C. exports will be a drag on growth, with the continued trade dispute between the U.S. and China and a general trend to trade protectionism internationally.
Retail sales rose 香蕉视频直播渁 mere two per cent last year following a 9.3 per cent increase in 2017 and 6.6 per cent gain in 2016, despite support from rising wages, solid labour market and population growth,香蕉视频直播� Central 1 says.
tfletcher@blackpress.ca
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