BCREA news for second half of 2013

BC Commercial Leading Indicator Points to Stability in Second Half of 2013

Vancouver, BC – May 28, 2013. The British Columbia Real Estate Association (BCREA) Commercial Leading Indicator (CLI) bounced back in the first quarter of 2013, rising 0.4 points and partially offsetting the decline in the fourth quarter of 2012. The index is currently sitting at 112.2. On a year-over-year basis, the CLI is 0.2 per cent above the first quarter of 2012.

The increase in the index was the result of stronger economic activity, particularly in the manufacturing sector due to a large increase in wood products output. Momentum in Canadian real estate investment trusts (REIT) returns and narrower risk spreads translated to a positive contribution in the index’s financial component. The employment component of the index, however, continues to lag due to a sharp slowdown in manufacturing employment.

"The increase in the CLI following last quarter’s decline has meant an overall flattening in the index’s underlying trend,” said Brendon Ogmundson, BCREA Economist. “This indicates that the slowdown signaled previously for the first half of this year will likely give way to modest growth in the second half of 2013."

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To view the full BCREA Commercial Leading Indicator index, click here.

For more information, please contact:

Brendon Ogmundson Damian Stathonikos
Economist Director of Communications and Public Affairs
Direct: 604.742.2796 Direct: 604.742.2793
Mobile: 604.505.6793 Mobile: 778.990.1320

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