I am going to use this week's column to vent a bit about what constitutes Canada.
I just finished reviewing a document by a reputable private-sector real-estate research and consulting group that cautions the Canadian new-home construction industry regarding future development.
In their short paper, they note that new housing starts are on a par with 2010, which was up 27 per cent from 2009. It also notes that prices are increasing in line with inflation and resales are within the 10-year average. The report also concedes the Canadian economy appears to be performing better than many developed countries.
So, what is the problem that warrants caution?
My first move was to break this down regionally. After all, if Canada is in a caution mode, there must be widespread regional concern.
Well, it's certainly not to be found in Newfoundland, as St. John's has been enjoying unprecedented economic growth and prosperity as reflected in their increased new home starts.
Halifax is showing optimism not displayed in decades. Quebec had a very good year in 2010, and there's no appreciable difference noted for this year.
Saskatchewan has been experiencing the most robust economy in Canada, and Edmonton is bouncing back from some tough times.
Toronto has a very strong condominium market, but there's concern that there is very little resale inventory on the market and not as many people will be buying.
Ottawa is a troubled market experiencing declines, and Calgary remains in a 'bust' phase. B.C. and Vancouver are in wait-and-see mode -- with the pending elimination of the HST, no one is going to make a major purchase until the harsh economic penalties are fully removed.
So, from all that roundup, this research group concludes that Canada is in a cautionary mode. Well, I contend that Canada is more than Ottawa, Calgary and B.C. We have five provinces that are doing exceptionally well, we have parts of other provinces that are either holding their own or starting to rebound, and then we have a few major centres that need to exercise caution.
Canada is much more than three or four urban centres. I appreciate their numbers can impact everyone else due to their size, but my Canada recognizes the uniqueness and strengths of every province.
When one considers every region of this great country, my Canada is doing quite well.
Mike Moore is president of the Manitoba Home Builders' Association.
