With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
Issue link: http://digital.canadawide.com/i/1159085
SEPTEMBER 2019 BCBUSINESS 15 G O F I G U R E Number of jobs in B.C. in 2018 2,493,600 g10% from 2013 903,000 additional jobs expected by 2028 N o matter where you stand on the debate over housing prices, it's a safe bet that the B.C. property market will keep delivering a bumpy ride for the rest of 2019. There was no shortage of turbulence in June, which saw home sales sink to a seven-year low for the month. That weakness forced sellers to settle for less, pushing the provincial average sale price down 4 percent year-over- year, to $687,326, according to the Canadian Real Estate Association. While some observers have warned that the recent decline could turn into a slippery slope that triggers catastrophic wealth destruction, others argue that it marks a wel- come return to more normal conditions, given extreme unaffordability throughout the province. That's certainly the angle that Finance Minister Carole James has taken. Following the announce- ment of the June housing figures, the deputy premier took to Twitter, opting for a positive spin. "After years of skyrocketing prices we're finally starting to see more balance in the housing mar- ket," James said. "We're seeing moderation in the cost of con- dos, townhomes and detached homes, while housing supply is at a five-year high." James added, "We're lead- ing the country in our work to ensure that housing is used for people, rather than a haven for speculation or worse, money laundering. I'll continue to watch the housing trends closely but am cautiously opti- mistic that the housing market is returning to balance." Returning to balance may be putting it politely, though. There's been nothing bal- anced about the B.C. market over the past half decade. The unprecedented housing boom turbo-charged sales, which hit all-time highs in 2016, inflat- ing prices by double digits for several years. Since then, the market has taken a drastic turn in the opposite direction. Through the first half of this year, cumulative sales plummeted to their lowest six- month total since 2013. Prices for luxury properties have also nosedived, prompting concern—or elation, depending on your point of view—that it could spread to the everyday part of the market. As of June, Metro Vancouver condo prices had already slipped 8.9 percent since last year, the Real Estate Board of Greater Vancouver reports. And so the future of B.C. real estate hangs in the bal- ance. Developers have pulled back amid the uncertainty, but the record number of housing units under construc- tion will soon go up for sale. Meanwhile, the provincial government is holding firm: "Homes should be for people, not speculative investment." For the first fiscal year of its speculation and vacancy tax, Victoria expects a haul of $115 million from what James calls foreign owners, satellite families and those with empty homes. At least somebody's making money in this market. • Balance Problems The provincial government may tout the return of affordability to the B.C. housing market, but it looks like stability will have to wait by Steve Saretsky P R OP E R T Y WAT C H Total hours worked in B.C. in 2018: Teenage girls in Canada get paid an average of $3 less per hour than boys at their summer jobs The wage gap rises to $6 per hour when the employer is family, friends or neighbours Average hourly wage: $26.77 g4.1% from 2017 Seller Beware B.C. home sales for January through June 4,179,854,000 AVERAGE NUMBER OF HOURS WORKED ANNUALLY PER PERSON: 1,666 42 hours LESS THAN 10 YEARS AGO Industries with the biggest percentage job gain in B.C. since 2008: Health care and social services g34% Professional, computer and scientific services g26% With the biggest percentage job loss: Agriculture j 30% Manufacturing j 2% 20000 2013 2014 2015 2016 2017 2018 2019 40000 60000 80000 SOURCES: CANADIAN RE AL ESTATE ASSOCIATION, STE VE SARE TSK Y