Strong employment to compliment the housing market
Provincially, the labour force & employment numbers are expected to increase moderately in 2010, while in Halifax, growth is expected to be more prominent. Halifax, like most years, will continue to see steady growth in the economy and this will translate into improving conditions in the local housing market.
The local economy in Halifax continues to benefit from positive migration patterns from outside the province, country and even from rural areas of Nova Scotia. Check out this article in The Halifax Herald. With more people moving to Halifax than moving away, the labour force has been growing significantly. Almost every month in 2009 saw a greater number of people looking for employment in the Halifax Regional Municipality and by summer, there were more people looking for work than ever before. Fortunately, unlike most other regions in Canada, most of these job seekers found employment which resulted in a record level of employment in Halifax. Employment was up by 3 to 4 percent per cent in 2009 compared to 2008! Employment come down off of the highs experienced in 2009 during certain months in the forecast period(2010), however overall employment is expected to continue to show positive growth in 2010. Very good news for the housing market as a whole!
Continued in-migration and near historic low interest rates along with the near record employment numbers will contribute to increased housing demand throughout the Halifax Regional Municipality. In the short term, some lingering effects of the weakened economy will keep demand subdued a little. In the longer term expect to see demand and activity begin to increase again in 2010. I will cover this in PART II of this outlook.
Interest Rates
The Bank of Canada cut the Target for the Overnight Rate in the early months of 2009 in order to bolster the economy and make credit easier for consumers to get so they could make purchases of big ticket items such as housing, cars & appliances. The rate was 1.50 per cent at the start of 2009 and has since fallen to 0.25 per cent. The effect on the economy has been positive and we are now on our way to positive growth in the economy. The Bank has committed to keeping this rate at 0.25% at least until July of 2010 unless inflationary pressures warrant an increase. NOW IS THE TIME TO BUY!!! Click here and fill out the form to begin the process.
PART II will be posted tomorrow…
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Hey! Great Information!