Image: David Paul Ohmer / Flickr
As if to add support for my point, the Conference Board of Canada’s Metropolitan Outlook for Winter 2010 came out today. In it, the report argues that Vancouver will likely have the fastest economic growth in Canada this year. It will see economic growth of 4.5%.
Mario Lefebvre, Director, Centre for Municipal Studies notes: “Only four Canadian cities posted economic growth of any kind in 2009 – Halifax, Saint John, Winnipeg and Regina.” However, this will turn around in 2010. “Canadian cities are on the rebound in 2010,” he says, “Although the pace of recovery will vary markedly.”
The second-most unaffordable city, Toronto, is projected to take second place in economic growth: its economy will expand by 3.5% this year. Encouragingly, some of this growth will come from manufacturing – the first of its kind since 2005 – but all sectors will contribute.
Kitchener, Oshawa, Ottawa-Gatineau, Edmonton and Saskatoon are not far behind in the ranking, and will also do well in 2010: each city is projected to achieve above 3.2% economic growth this year. Calgary, and several other cities in the West, such as Victoria and Winnipeg, will also see robust economic expansion.
Montreal and a few cities in Ontario will see growth in the 2.5% range. Atlantic Canada, which surprisingly led economic growth in 2009, will continue to see positive growth in Halifax and Saint John.
What does this mean for you, and your real estate decisions? In some of these markets, particularly Edmonton and Vancouver, economic growth is being led by a rebound in residential construction. This could mean a potential easing of residential prices in these regions. This will be especially true of Vancouver after the Olympics.
The other thing to take away from this information is that this is good news for jobs in most cities in Canada. With economic growth strong, some sectors – such as manufacturing – will even start hiring again. And rising growth means wage increases. With more money, you can save more for a purchase, or pay down your mortgage faster.
It sounds like 2010 could be a great year!
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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