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A shift in markets has begun, and the outcome is uncertain

Real estate roundup Peter Mitham

The market shifts The World Health Organization’ s declaration on March 11 that the novel coronavirus COVID-19 was a pandemic trig gered a wave of public health a nd fiscal policy measures abundantly covered in this pub lication and others. What was r ecommended in the interests of public health one day became a requirement the next.

Over the course of a week, B.C. provincial health officer Dr. Bonnie Henry went from sug gesting people gather in groups o f less than 250 to shutting down bars and urging a separation of two metres between shoppers in retail premises. “Go outside and play with your family. Go up to our ski hills. Go up to Whist ler,” she urged on March 13; the f ollowing day, Vail Resorts Inc. announced that its North Amer ican resorts, including Whistler Bl ackcomb, would close beginning March 15. T he restrictions will deliver a significant hit to the cash flow of local hotels – which until last year had been setting new performance benchmarks – and other properties rooted in tour ism and socializing. T he Canadian Tourism Commission est imated that severe acute respiratory syndrome (SARS), also caused by a corona virus, cost hoteliers 662,000 r oom nights in April 2003. Room revenues in B.C. fell 5.5% that month versus the previous year. According to the commission, the total impact on Canada’s economy from SARS that year was $519 million.

Meanwhile, governments around the world have un leashed economic remedies like i t’s 2008. Policies rolled out in response to the financial crisis have been redeployed even before the full impact of the

The timing and magnitude of the rebound are highly uncertain at this point

[] RBC Economics

pandemic on businesses and personal finances is known or can even be assessed. The Of fice of the Superintendent of F inancial Institutions postponed changes to the stress test applied to mortgage applicants – the comment period ended March 17, and a decision was expected by April 1 – while the Bank of Canada cut its benchmark lend ing rate to 0.75%, a percentage p oint lower than the rate in January. The two moves sug gest concerns about overheated h ousing markets and unaffordable home prices in Canada are a t hing of the past.

Reduced availability But if the financial measures are in place, are the buyers?

Travel restrictions have largely removed foreign nationals from the market for the foreseeable future (the province’s health minister has even advised U.S. residents to stay home), but everyone now faces restricted access to presentation centres and added hurdles in closing deals. Brokers contacted last week indicated that clauses to accommodate longer closure times were being written into contracts to account for the delays. And, of course, many buyers were staying away alto gether, prioritizing the health a nd needs of themselves and their families.

There’s also a smaller selec tion of projects on offer. Project l aunches in Metro Vancouver have declined steadily over the past three years, from a peak of 199 in 2017 to 105 last year. To quote the Canada Mortgage and Housing Corp.’s summary of its latest assessment of the Van couver housing market, “There c ontinues to be low evidence of overbuilding.”

Michael Ferreira, managing principal of market research firm Urban Analytics Inc., ex pects COVID-19 will “definitely d elay the launch of any significant new projects,” further exacerbating the region’s shortage o f available housing. But the issue circles back to the economic fallout of the pandemic.

“Will there be a bump in ac tivity resulting from pent-up d emand, or will the market slow as a result of the loss of income many are incurring from not being able to work?” Ferreira asked.

The answer to that question will surely lie in the duration of the public health emergency, the amount of spending that’s curtailed and how many jobs are lost temporarily or permanently as a result.

RBC Economics says the tight market conditions mean a price collapse is unlikely, but “the timing and magnitude of the rebound are highly uncertain at this point.” Scotiabank, for its part, is optimistic, forecasting “a strong rebound beyond Q3” as interest rates remain near re cord lows. •

pmitham@telus.net

BCIT BUSINESS

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Corporate Training Helps Organizations Unleash The True Potential of Their Human Capital Connecting work to purpose increases employee engagement and productivity.

British Columbia Institute of Technology’s (BCIT) School of Business and Media offers corporate and industry training services to corporate clients wanting to enhance their employees’ skills and knowledge, provide professional development, and engage employees in pursuit of organizational goals.

In addition, BCIT’s Corporate and Industry Training Services will customize offerings to ensure they address an organization’s unique needs, the intended audience and the specific objectives identified.

“We can help you realize your organization’s true potential through engaging your people and igniting your purpose to realize your productivity goals,” says Amy Fell, BCIT’s Industry and Corporate Training Coordinator.

BCIT is one of the largest business schools in Western Canada with a wide array of corporate and executive education offerings to serve professional development and career advancement.

For over two decades, BCIT has worked with businesses, municipalities, and organizations to realize the true potential of their human capital.

“We want to help you figure out how training dollars can be invested wisely to improve employee skills and connect their work to the pursuits of the organization,” Fell says. “A person will always do more when they feel that someone believes in them. We get inspired, we strive, and we contribute beyond what we believe we are able. Employees start to realize

BCIT’s facilitation teams are available to provide training at a company’s workplace.

the connection they have with the organization, which creates lasting loyalty and reduces the drain of turnover.”

When Fell works with clients to determine their needs, she draws a model of interlocking circles that demonstrate the interconnected nature of people, productivity, and purpose. Where the circles overlap are opportunities for training and growth.

“We’ve learned that moving the dial on productivity relies on a connection between your people and your purpose,” Fell says. “The intersection of all circles is the potential you have as an organization. If you get all these things right, productivity is the byproduct.”

BCIT Business and Media has an extraordinary team of professional facilitators who bring the topics to life by using practical examples. Facilitators are industry experts and leading practitioners in their fields.

Whether during the day, evening, or weekends, BCIT’s facilitation teams are available to provide training at a company’s workplace. A statement of completion can also be issued to employees for successful workshop completion.

BCIT offers the largest selection of accredited business programs in the province, with 98% of degree graduates finding employment within two years of leaving BCIT.

As many companies head into the new fiscal year, they may want to consider some of the trends in corporate training.

Managing Millennials in the workforce is something Fell has seen an increase in demand for from organizations and managers.

“There’s been a shift. It’s been an employers’ market for a long time, where employers could say, ‘I want you to do more for less’,” Fell says. “Now it’s shifted to an employees’ market, where employees consider, ‘is this job good for me, good for us, and good for the world?’” Millennials are different from their Gen X and Boomer counterparts in that they want to feel like they are integral to the work of an organization and tend to seek mentorship.

“This is where clarity is critical. Connecting employees to an organizations purpose drives personal motivation and helps employees see their contribution toward achieving an organization’s purpose,” Fell says.

Another new trend she has seen recently is a move toward employee-directed learning. “This is a new trend in employee development. Employers need to spend time asking employees how they want to develop as an individual and what training they need to get there. Enabling employees to take responsibility for their learning demonstrates a commitment to their success and with that…an organizations success,” Fell says.

Investing in individuals inspires loyalty and reduces turnover. “You want them to realize they can fulfil their potential by staying at your organization,” Fell says. To learn more about BCIT’s variety of customizable workshops and workshop series for corporate clients, visit: bcit.ca/business/industry/training/