Canadian employment rose slightly to 20.08 million in March, up by 35,000 (0.2 per cent). The Canadian unemployment rate held steady at 5 per cent, hovering just above all-time lows. Employment gains were concentrated in transportation and warehousing (+41,000); business, building and other support services (+31,000); and finance, insurance, real estate, rental and leasing (+19,000). Average hourly wages were up 5.3 per cent from March of last year, while total hours worked were up 1.6 per cent year-over-year. 

Employment in BC was unchanged in March, along with Metro Vancouver. However, the unemployment rate in BC fell to 4.5 per cent and in Metro Vancouver to 4.8 per cent. This reversed the jump in unemployment last month caused by increased labour force participation. Only Quebec currently has a lower unemployment rate than BC. 

Link: https://mailchi.mp/bcrea/canadian-employment-march-2023-april-6th-2023

For more information, please contact: Gino Pezzani.

Vancouver, B.C. – April, 2023 – Sales activity and dollar volumes in the Lower Mainland’s commercial real estate market held steady in 2022, despite the challenging headwinds brought about by the highest borrowing costs seen in over ten years.

There were 2,116 commercial real estate sales in the Lower Mainland in 2022, a 22.9 per cent decrease from 2,743 sales in 2021, according to data from Commercial Edge, a commercial real estate system operated by the Real Estate Board of Greater Vancouver (REBGV). It’s an approximately 1.6 per cent decrease from the five-year average for sales (2,082) in the region.

The total dollar value of commercial real estate sales in the Lower Mainland was $12.885 billion in 2022, a 16.5 per cent decrease from $15.424 billion in 2021. This is a six per cent increase from the five-year average for dollar values ($12.153 billion).

“With the Bank of Canada raising the policy rate from 0.25 per cent to 4.5 per cent in a little under one year, the strong sales volumes seen in the Lower Mainland last year really speak to the resilience of our market” Andrew Lis, REBGV’s Director of Economics and Data Analytics, said. “While sales were down in the second half of 2022 relative to the first half, the figures were roughly in line with what we’ve seen historically, when our market wasn’t facing down challenging headwinds from much higher borrowing costs, and the looming possibility of an economic recession.”

2022 activity by category

Land: There were 718 commercial land sales in 2022, which is a 14.4 per cent decrease from the 839 land sales in 2021. The dollar value of land sales was $7.319 billion in 2022, a 5.5 per cent decrease from $7.746 billion in 2021.

Office and Retail: There were 804 office and retail sales in the Lower Mainland in 2022, which is down 23.3 per cent from the 1,048 sales in 2021. The dollar value of office and retail sales was $2.332 billion in 2022, a 26 per cent decrease from $3.153 billion in 2021.

Industrial: There were 500 industrial land sales in the Lower Mainland in 2022, which is a 30 per cent decrease from the 711 sales in 2021. The dollar value of industrial sales was $1.863 billion in 2022, a 23.9 per cent decrease from $2.447 billion in 2021.

Multi-Family: There were 94 multi-family land sales in the Lower Mainland in 2022, which is down 35.2 per cent from 145 sales in 2021. The dollar value of multi-family sales was $1.371 billion in 2022, a 34.1 per cent decrease from $2.079 billion in 2021.

As I reflect on the past year, I realize that my perspective has shifted. In April 2022, I wrote to you about the concept of rebirth, feeling that it was time for something new. But now, as spring blossoms and summer approaches, I have a newfound sense of appreciation for what I have accomplished and overcome.

Instead of rebirth, I offer you another word: remember. Change can bring about uncertainty and regrets, but sometimes we must look back on our experiences and recall the good that came from them in order to find peace. Take some time to acknowledge your mistakes and accept them as part of your journey - they have led you to this very moment in time.

Each thing you do is meaningful, each decision produces a result - these actions make up who you are today and what you will be tomorrow. As you pause for a breath of fresh air amidst the beauty of springtime, remember that your unique imperfections are what make you special - perfectly imperfectly you!

Sincerely,

Gino Pezzani

Oakley, an old oak tree, stood in a field surrounded by young saplings. Although proud of its tall stature and deep roots, Oakley often felt envious of the saplings' youthful beauty.

One day, a strong storm hit the field and the saplings bent and swayed, unable to withstand the winds. Yet Oakley stood tall, deeply rooted in the ground.

The young saplings were in awe of Oakley's strength and wisdom, but also felt a tinge of jealousy for their own vulnerability.

As the years passed, the saplings grew tall and strong, but Oakley remained steadfast.

During the scorching summer days, the young trees would seek refuge under Oakley's shade, grateful for its presence and the lessons it had taught them.

However, Oakley struggled with a newfound sense of purpose and meaning, as it watched the young trees surpass it in height and beauty.

A wise sage visited the field and sat beneath Oakley. The sage listened to Oakley's worries and then said: "Dear Oakley, your beauty lies not in your height or strength but in the lessons you have learned and the wisdom you have gained throughout the years. You have a special role to play in this world, and the young saplings will always seek your guidance and wisdom."

Oakley was filled with a sense of purpose and joy. It realized that growing older was a blessing, not a curse.

With each passing year, it became more beautiful and wiser, and had learned to appreciate the journey of aging. It embraced its role as a mentor and guide for the young saplings and stood tall and proud, basking in the sunshine.

Canadian real GDP jumped 0.5 per cent in January, falling a 0.1 per cent contraction in December. The rise in GDP was spread across both goods-producing industries (+0.4 per cent) and services-producing industries (+0.6 per cent). Growth was led by a rebound in oil sands extraction after unplanned maintenance in December, coal exports to China, durable goods manufacturing, and construction activity. Canadian real GDP is now roughly 3.2 per cent above its pre-pandemic, February 2020 level. Preliminary estimates suggest that output in the Canadian economy rose 0.3 per cent in February.

The large jump in GDP in January bucked expectations of continued slowing as tighter monetary policy worked its way through the Canadian economy. Growth was softer than expected in the fourth quarter of 2022, supporting the Bank of Canada's 'conditional pause' on further rate hikes. In contrast, this month's strong number would normally bias the Bank of Canada toward additional monetary tightening, but progress on bringing down inflation, alongside the lingering uncertainty stemming from bank failures in the United States, will likely keep the Bank on hold. With employment markets remaining tight but inflation appearing to soften, the Bank will be weighing the evidence before its next rate announcement on April 12th. 

Link: https://mailchi.mp/bcrea/canadian-real-gdp-growth-january-2023

For more information, please contact: Gino Pezzani.