Approximately 140 builders, developers, trades, and suppliers turned out to hear economic forecasts from Craig Wright, Vice President and Chief Economist, RBC Financial Group; Lee King, Corporate Representative, Vancouver Island, Canada Mortgage and Housing; and Scott Kendrew, President Elect, Victoria Real Estate Board.

According to Wright, interest rates will remain relatively flat, with perhaps a slight increase toward the end of the year and into 2006. B.C.'s strong economic performance in areas like GDP, employment, and immigration will contribute to continued strong housing starts in 2005, while the rest of Canada may experience a weakening in the market. B.C. is expected to place second in economic growth after Alberta.

"B.C.'s economic performance during the past few years has fueled Greater Victoria's strong housing economy," said Casey Edge, Executive Officer, CHBA-Victoria. "Craig's forecast of continued low interest rates combined with a robust B.C. economy is great news for both builders and home buyers."

Lee King outlined the resurgence of Greater Victoria's condo market and new developments including the Railyards in Vic West, Edgewater, Parc Residences, and the development opportunity at Dockside. King also noted the region's available supply of land shifting from the urban core to the West Shore, where single family and townhouse developments include Royal Bay, Bear Mountain and Sun River Estates. Greater Victoria's housing starts increased to 2363 in 2004 from 2008 in the previous year. King agreed with Craig Wright that interest rate increases for 2005 would be modest, resulting in another strong year for homebuilding. One concern was the challenge of creating housing affordability in a region of high land costs, and King pointed to CHBA-Victoria's Flex-Plex Housing Project in Saanich as helping to address this issue.

Scott Kendrew revealed that the overall average price of single family homes sold in Greater Victoria increased nearly 18% last year to $386,045. The overall average price for condominiums also rose 18% to $216,300 while the average price for townhomes increased over 21% to $298,872. Total sales showed little change from 2003, increasing by just one percent. Kendrew also noted that the increase in the number of properties available for sale would help reduce market volatility. He anticipated that major price jumps over the past few years would probably taper off.

Darrel Orr, President CHBA-Victoria finished the meeting by underlining the importance of regional planning in Greater Victoria to meet the challenge of an increasing population and demand for housing. "We are a retirement destination for baby-boomers representing one third of Canada's population," said Orr. "We can meet the challenge by developing better transportation systems, improving our infrastructure, and encouraging more efficient land use."

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