So we did it – we survived the impending end of the world that was scheduled for December 2012, the housing market slowed (as was the plan with the CMHC changes and the basic facts of affordability and supply/demand cycles) but didn’t crash. Hyperbole everywhere, headlines of ‘Surprising’ job growth numbers open the year. By the way, don’t expect the hyperbole to be turned down in 2013.
Right now there is a frantic chase for yield as the population ages. This hunt goes on in the stock market, bond market as well as the real estate market. In fact, among the large players (international funds, Canadian public companies and REITs, Sovereign Wealth Funds, etc.) there is more money chasing fewer and fewer deals.
This will keep cap rates low in the more commercial transactions (multi-family, office and light industrial). In addition, more money is to pour into Canada in 2013 (due to our new “reserve currency” status) which will keep interest rates and bond yields low making quality real estate even more popular.
You thought 2012 was interesting? Just wait until 2013 begins to gain some momentum. “May you live in interesting times…” is an old, old curse; well, 2013 will prove to be one of the more interesting times in a long time.
Elections, protests, strikes, pipelines will all fuel the hyperbole. This confusion and fear will have an effect on the average consumer which, even in markets where the fundamentals are strong, will put a little bit of a cap on the housing purchase – which is a good thing.
Strategic investors will find that, by following the analysis system described in my latest book Secrets of the Canadian Real Estate Cycle, they will be able to position themselves for years of strong yield and income. While others sit on the sidelines in fear focusing on “Purchase Price”, we will gladly be adding property income streams to our portfolio and so will the large Canadian and international investors as they grab whatever they can here in Canada.
Recently, I sat down with BNN’s Business Day segment to wrap up 2012 and hit the key points that we experienced over the course of the year and give some of my forecasts for 2013 and beyond.
Check out the video below and listen to my insights. It’s the perfect way to set yourself up on the right track for the New Year, because before you know it, it won’t be new and we’ll all be in the thick of it. Cheers!
Don R. Campbell on BNN: December 31, 2012
Feel free to share this post and video with the share buttons above. I hope to see you at the Big 2013 Kick-Off Real Estate Conference on January 19th in Calgary with myself, Richard Dolan and Harvard Professor Dr. Paul Stoltz as we set you a foundation for 2013 success. Click here for all the details.