Financial Forecast for 2006.

David Baxter is Executive Director of Vancouver's Urban Futures Institute.  I remember him from the UBC campus daze (now called Sauder School of Business) when he was a course instructor for the Commerce Faculty.  The following is Dave's economic forecast for 2006, * expecting house prices to rise.

                 Into the Next Year We Go

Bank prime will go up, but not by much (half a per cent or so), and so will mortgage rates (ditto). The dollar will go up, but not by much (a cent or so), and house prices will rise, a bit, just like dough.

As ever more war babies into retirement grow, and the number of labour force entrants shrinks like melting snow,

Unemployment rates, down they will go, making it harder to be certain that workers will at work show, pushing up incomes and the costs to make dough.

Housing starts will continue strong, not setting any records though, while non-residential construction through the roof it will go.

Energy costs will go down, not enough to notice though, as China and America need to heat homes and bake bread from dough.

Interprovincial migration will be positive, and even grow, butnot approach records as workers stop at the Alberta payroll show.

Immigration will be up, although still records below, making communities happy, diverse, and full of children learning to grow.

As so we relax at home as through our streets winter's winds do blow, out in to rain away from the couch we need not go, as we think about risk and return, and opportunities all in a row.

by David Baxter.

*Source:  "The Vancouver Sun," Dec. 30/05, Page D3.