Trudeau was won with a majority government in the October election. The Liberal party captured 338 seats after over ten years of Conservative government. The real estate market will be affected, however everything is speculation at this point. His campaign promises included;
Trudeau plans on running a deficit for the next three years which should over time lower the Canadian dollar. A lower dollar will help exports and reduce Canadian investment in American real estate. We saw a flood of baby boomers snapping up cheap property in Arizona and Florida in 2008. The dollar is currently .75 US. It was .77 US the day after the election. Foreign investment may become more attractive.
If GDP goes up and the economy is stimulated interest rates should go up. Interest rates really could not get any lower so this seems inevitable. The overnight rate is .5% which is half what it was last year. It will certainly take the pressure off the Bank of Canada. The government will likely issue 5 and 10 year bonds so nothing dramatic should happen.
More spending on infrastructure should increase employment and make it easier for lower income families to buy homes. My hope is that the middle class does benefit from the changes and it creates a stable real estate market. Renters should also benefit from a Trudeau government. I suspect that any cooling in the market will occur in cities like Vancouver where a million dollar home is a tear down. If Canada borrows money to boost economy at least they are at the lowest interest rates in history.
As with any change in Government policy, there will be change in the market. How and when these changes will occur is speculative. As with most economics theories, they are just theories until the results are in. Consumer confidence also plays a huge role in how the real estate market performs.
The Lions Club of Nanaimo will once again be hosting Free Everyone Welcome skate sessions from 12:00 pm to 1:30 pm on Sundays from Sept.13/15 until March 27, 2016 at Frank Crane Arena. On Nanaimo Clippers Junior 'A' game days, the Lions Free Skate will run from 10:45 am to 12:30 pm. This valued project continues the long tradition of the Nanaimo volunteer service to the community of Nanaimo. The Lions Free Everyone Welcome skate sessions include admission, helmets and skate rentals. There will not be a Lions Free Everyone Welcome skate session on December 27 due to the Winter Wonderland event.
October single family home sales were the same as last October but up 17% YTD.
The average home price is up 6% YTD $389,036.
Condo sales are also up 17% from 12 months ago but October sales are down 11% from last October. Condo prices rose 4% from 12 months ago. Condo inventory has stabilized at 134 listings (roughly a 6 month supply).
To see all the sales stats - Nanaimo Real Estate Statistics
The purchase includes the golf course, marina, Fairwinds Centre and the development land which could have an additional 2100 homes. Seacliff also recently purchased Ocean Grove which was a community in Colwood that was in receivership. Fairwinds is over 2 billion dollars of real estate. This size of investment in local real estate is exciting and should be good for the local construction trades. What I am curious about is; does this land have access to more water to support more development?
There have been many improvements in the last several years on appliances and more efficient heat sources.
You can now get gas furnaces that are 98.7% efficient. They burn less gas but also have 2 stage fans that save on electricity as well.
On demand hot water systems are tank-less and only consume energy while they are being used. The price on these units has come down and you can even get some models that will work even if the power is out. The other benefit is these systems do not run out of hot water...ever! The electric ones may not work for you because they require 100 amps of power. You can get them to run on propane or natural gas.
You can also buy a Home Energy Monitor to see in real time what you are using. The Rainforest Monitor also comes with a mobile app and it is a BC company.
Rainforest Energy Monitors
LED lighting can save you money, they use 75% less power. You can get replacements for Halogen Lamps and lamps that require the ability to be dimmed. They even have models that you can control several light at once via remote and change the colour of the light.
Install a programmable thermostat and save an estimated 10% per year on heating and cooling.
One of my clients hooked up several solar panels to a bank of batteries that power a small electric heater. A friend also has a smaller system that powers the LED lights to his chicken coop.
There are many innovations in new home construction. The one that caught my eye was an I.C.F. home. ICF stands for insulated concrete form. The 6 inch concrete walls have 3 inch Styrofoam insulation on each side of the wall. These homes take 44% less energy to heat than a framed home. They are very quiet, have no cold spots and nothing blows through a reinforced concrete wall. The walls are so strong you can even design a home with no load bearing walls which makes room design easy. These homes are also cool in the summer.
Each year the Nanaimo Yacht Club does a Christmas sail past. This year it is scheduled for Saturday December 5th. You watch it from shore or from a friend's boat. It starts at 7 pm. We followed the Dragon Boats one year. As I ate my hot roast beef sandwich on the top deck I marveled at their ability to stay warm. The boats will all be decked out with Christmas lights.
The boats will assemble at Mark Bay (by Newcastle Island) and sail to Cameron Island and then along the waterfront, past Maffeo Sutton Park, down Newcastle Channel, circle Departure Bay and return up Newcastle Channel to the Yacht Club.
The cruise will go, rain or shine so be sure to pick out a good spot along the route to enjoy this colourful seasonal event. The event is open to all boaters, and being a Yacht Club member is not a requirement to participate.
I post both my cell and office number so my clients can reach me anytime. I am always happy to discuss your Nanaimo real estate needs.
Office 1-5140 Metral Dr. Nanaimo