The Conference Board of Canada reports that the Metro Vancouver economy will increase by a solid 3.3% in 2008, despite higher housing prices, which puts it in 4th place alongside Abbotsford. Last year, Vancouver’s economy grew by 3%. The reason, according to the Board, is non-residential activity, such as retail sales (predicted to grow by 6.7%), employment and personal income.

Western Canada had the top 5 spots in this year’s growth forecast, with Calgary (4.2%), Edmonton (4%), Winnipeg (3.4%), Vancouver (3.3%), Abbotsford (3.3%). Strong energy demand, furious construction activity and robust consumer spending continue to drive Calgary’s outlook. A strong employment market in Winnipeg is helping to attract more immigrants. Toronto placed 7th on the list with a growth forecast of 2.8% with, again, consumer spending helping to balance out the decimated manufacturing sector. Victoria comes in at 9th on the list with 2.7%, Ottawa-Gatineau at 11th and Saskatoon at 12th.

In the Vancouver Sun, Royal LePage reported that Vancouver real estate prices rose between 11 and 12.4% year-on-year, with an average detached bungalow reaching $795,250 by the end of 2007. The strong job market and population influx is credited for adding buyers to the market.

The same was demonstrated in Victoria which saw a price gain of 9.4 to 22.7 % depending on the housing type.

Saskatoon and Regina, however, saw price gains of more than 50% for detached bungalows reflecting rising demand from inwards migration with many people returning to Saskatchewan from Alberta coupled with limited supply. Developments in the oil and gas sector, potash and uranium mining continue to drive growth. Housing prices are still below the national average in this province with a detached bungalow averaging $292,500 in Saskatoon and $229,200 in Regina.