Making news in real estate this week…
INFLATION: The just-released January year-to-year comparison of the British Columbia Real Estate Association reports that the Consumer Price Index shows inflation is slowing…albeit modestly. The December-to-December CPI rose by 6.3 per cent, and January’s increase was slightly less, at 5.9 per cent. That was for all of Canada. In B.C., the inflation increases were similar: 6.6 per cent in December and 6.2 in January. If the trend continues, it’s an indicator that inflation may have peaked.
PRICES: Also according to the BCREA, there continues to be “encouraging signs that the bout of rapid price appreciation that began in January of last year is waning.” While food and gas prices have been on the rise, the unclogging of supply chain is starting to soften prices for things like autos and durable goods.
Many experts predicted this would start to happen in the early months of 2023, and that it could lead to continuing stability in interest rates and, ultimately, a more positive real estate market.
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A Business In Vancouver story details the thoughts of contractors about the Provincial Government’s attempt to speed up the permit process, as announced last month.
Union of B.C. Municipalities president and local councillor Jen Ford said: “Whenever you can find efficiencies, that helps everybody. It’s a challenging environment. There are no simple ways of doing this, but finding efficiencies will certainly help.”
The province began addressing inefficiencies by adding 42 people to to support the Permitting Strategy for Housing, seen as the first step in streamlining what it hopes will become a one-stop process.
The Canadian Home Builders’ Association (CHBA) continues to call for changes at the municipal level, posting this message on its website:
“The implementation of a transparent, reliable, and standardized source for timelines and quantity of approved housing data can ensure that supply shortages relative to housing demand can be anticipated and acted upon as early as possible.”