Strong economy foundation for a strong real estate market

Manitoba’s economy is expected to continue on a solid growth path through 2013, according to the latest RBC Economics Provincial Outlook report. 
Expectations of a sustained global and U.S. recovery will support both manufacturing and natural resources in the province. 
And with the strength of the economy, the local real estate market is also expected to maintain its momentum in the New Year, according to a new RE/MAX report.
RBC forecasts that Manitoba’s economy will grow by 2.5 per cent in 2011, 3.2 per cent in 2012 and three per cent in 2013.
The province’s  economic growth is buoyed by it’s diversified economy, which is not prone to the booms and busts of other provinces, according to the report.
“Manitoba's current economic strength lies in its diversified economy,” said Craig Wright, the senior vice-president and chief economist for RBC. “With this solid base, the province should have no problem adding three more years to its track record of moderate, but steady progress.”
The strength of Manitoba’s economy set the stage for another strong year for real estate activity in Winnipeg, according to the newly-released RE/MAX Housing Market 2012 report.
The unemployment rate, among the lowest in the nation, that is now hovering around 5.8 per cent, is expected to drop ever lower next year due to Winnipeg’s “vibrant” economic outlook. 
“Income growth spurred consumer confidence and buyer intentions,”  RE/MAX reported, “while the city’s population continued to rise, supporting new household formations.
“With the belief in homeownership as strong as ever, Winnipeg’s real estate market is on track to post a near record performance” this year.
WinnipegREALTORS® president Ralph Fyfe said the local economy and the real estate market is “firing on all cylinders.”
The average house price in Winnipeg is projected to rise by four per cent this year to $240,000, and by three per cent in 2012 to $247,000.
“What 2011 proves is that real estate continues to have momentum,” said Elton Ash, the regional executive vice-president for RE/MAX of Western Canada. “The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further.”