The Honourable Vic Toews, President of the Treasury Board and Member of Parliament for Provencher, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), the Honourable Gord Mackintosh, Minister of Family Services and Housing, and Mike Pagtakhan, City of Winnipeg Councillor for the Point Douglas Ward, made the announcement today in Winnipeg.

“The Government of Canada is committed to helping Canadians in Winnipeg and across Canada access quality, affordable housing,” said Minister Toews. “Through this investment, CentreVenture will be able to offer low-income families and individuals more rental housing options and an opportunity to start a new chapter in their lives.”

All three levels of government are supporting the construction of a new $3.7 million, 25 unit apartment complex located in downtown Winnipeg. Construction of CentreVillage is underway and the building will be ready for tenants in the summer of 2010.

“Manitoba has a long history of welcoming and supporting new Canadians and there’s nothing more important than having a safe, affordable place to live,” said Minister Mackintosh. “Today’s announcement builds on other recent commitments and demonstrates that when we work together with the community we can really make a difference.”

Today’s announcement includes more than $1.85 million in funding through the Canada – Manitoba Affordable Housing Program, Manitoba Housing’s HOMEWorks program, and the City of Winnipeg.

Representing Winnipeg Mayor Sam Katz, Councillor Mike Pagtakhan said, “Winnipeg is, above all, a city where people genuinely care about their neighbourhoods, and each other. The City is proud to be a partner and investor in CentreVillage, because the housing opportunities it will provide to residents of the Central Park area are in our community’s best tradition of neighbours helping neighbours.”

“CentreVenture Development Corporation is pleased to see CentreVillage housing become a reality. We are working with our community based partners, Knox Centre, to increase the variety of housing options in the Central Park neighbourhood.” said Ross McGowan, CEO of CentreVenture Development Corporation “as the City of Winnipeg’s downtown development agency we appreciate the value that strong and diverse neighbourhoods contribute to our downtown.”

In Winnipeg, these investments are being delivered through the Winnipeg Housing and Homelessness Initiative (WHHI), a partnership between the Government of Canada, the Province of Manitoba and the City of Winnipeg. The partners work together to deliver funding provided through each level of government for affordable housing, to address homelessness, and to assist in the revitalization of Winnipeg’s older neighbourhoods by providing rehabilitation and repair loans.

These investments are part of the Government of Canada’s $1.9-billion commitment for housing and homelessness for low-income Canadians. As part of this investment the Affordable Housing Initiative (AHI), the renovation programs for low-income households and Homelessness Partnering Strategy were renewed for two years to March 31, 2011. In Manitoba, these initiatives are jointly funded by the federal and provincial governments through contributions totaling over $34 million for the next two years.

The Government of Canada today marked the start of construction of the Urban Ecology demonstration project, an energy-efficient and environmentally friendly home to be built in Winnipeg.

The home will be constructed by Winnipeg Housing Rehabilitation Corporation (WHRC), as part of Canada Mortgage and Housing Corporation’s (CMHC’s) EQuilibrium™ Sustainable Housing Demonstration Initiative, which encourages builders and developers to build the next generation of sustainable housing in Canada.

The Honourable Steven Fletcher, Minister of State (Democratic Reform), on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for CMHC, was joined today by Flor Marcelino, Member of the Legislative Assembly (MLA) for Wellington, on behalf of the Honourable Gord Mackintosh, Minister of Family Services and Housing and minister responsible for persons with disabilities for the Province of Manitoba, City Councillor Jeff Browaty, on behalf of Mayor Sam Katz and the City of Winnipeg, and Menno Peters of WHRC, along with sponsors and supporters in the ground-breaking of the first demonstration home of its kind in Manitoba.

“The Government of Canada is pleased to work with the housing sector to develop such innovative homes. We congratulate WHRC on their winning design and commitment to environmental responsibility,” said Minister of State Fletcher. “Urban Ecology gives people in this region an opportunity to see first-hand how we can create beautiful, healthy homes, conserve energy and resources, and reduce pollutant emissions.”

Urban Ecology will integrate solar energy systems into its design and construction, in addition to high-efficiency appliances, water-efficient fixtures and building materials with lower pollutant emissions. A two-storey duplex on an infill site in an established downtown area, Urban Ecology represents a new approach to building in an urban environment. It also demonstrates how the principles of EQuilibrium™ housing can play a key role in the delivery of affordable, efficient and healthy housing as part of the overall renewal of Canada’s inner cities.

The project received over $160,000 in funding from the Winnipeg Housing and Homelessness Initiative (WHHI). WHHI is a partnership between the Government of Canada, the Province of Manitoba and the City of Winnipeg. WHHI funding includes $120,000 from the cost-shared Canada – Manitoba Affordable Housing Initiative and up to $41,200 from the City of Winnipeg in funding and land costs. CMHC is also providing $60,000 to WHRC to help with the costs of designing, documenting and promoting the project. Other contributors include the Province of Manitoba Sustainable Development Innovations Fund (SDIF), the Province of Manitoba Science, Technology, Energy and Mines (STEM), the Winnipeg Foundation, and Manitoba Hydro.

“Manitoba has always enjoyed a leadership role in innovation, and we are especially glad to see these designs aimed at entry level or first time home buyers” said Doug Martindale, on behalf of Minister Mackintosh. “Environmental responsibility is everyone’s business and we all win when new housing options are made available to Manitobans, especially in existing neighbourhoods.”

Representing Mayor Sam Katz, Councillor Browaty said, “Building sustainable neighborhoods is a key focus of the City’s long-term planning in the Speak Up Winnipeg process. We’re pleased to be partners in a project that advances that goal, and helps point the way to a greener Winnipeg.”

“As with many growing cities, Winnipeg’s downtown neighbourhoods are in need of rehabilitation and renewal. We are excited to be creating affordable housing while renewing the urban environment,” said Menno Peters of Winnipeg Housing Rehabilitation Corporation. “Urban Ecology will demonstrate that energy-efficient healthy homes can be affordable for entry-level buyers of the housing market.”

Urban Ecology is one of 15 projects that won CMHC’s national EQuilibrium™ sustainable housing competitions since the initiative was launched in 2006. All EQuilibrium™ projects will be open to both the general public and professional audiences for tours, and then monitored for performance by CMHC for one year, once occupied.

EQuilibrium™ offers a new approach to housing in Canada. It strives to balance our housing needs with our environmental priorities. It brings together the principles of occupant health and comfort, energy efficiency, renewable energy production, resource and water conservation, and reduced environmental impact.

A new forecast from a major Canadian real estate company predicts that the national housing market is stabilizing, after seeing a “remarkable turnaround” in the second quarter of 2009.

Royal LePage predicts that the selling price of the average house will drop by only two per cent this year — an improvement over the real estate company’s prior forecast from six months ago that predicted a three per cent drop.

The real estate company also predicts that the number of unit sales will drop about one per cent in 2009 to an estimated 430,000 sales.

Phil Soper, the president and CEO of Royal LePage Real Estate Services, said that the forecast adjustment is the result of the improved real estate sales numbers seen in the second quarter of this year.

“We’ve got the most important quarter in the real estate calendar behind us — the second quarter — and it really was a remarkable turnaround,” Soper said during an interview on CTV’s Canada AM on Tuesday morning.

“As steep as the decline was, the bounce-back was just as dramatic,” he added.

While the year’s second quarter saw housing prices beginning to appreciate, the average national housing prices still remain below their values from 12 months ago.

According to the Royal LePage figures:

* The average price of a detached bungalow declined to $327,964, about 3.5 per cent below what it was the year before
* The average price of a two-storey home was down 3.7 per cent to $392,378
* The average price of a condominium dropped four per cent to $236,612

Soper said a combination of lower mortgage prices and a housing supply shortage in parts of Canada helped push the market upward during the second quarter.

But he cautioned that the market still has a long way to go, when it comes to recovering the value lost during the recent setback.

“It’s going to look better for the second half of this year,” he said. “It’s not going to be a startlingly good year like earlier in the decade, but I think just the bounce-back, the comeback from where we were, is going to make a lot of Canadians feel a lot more comfortable about the homes they live in.”

In many Western Canadian cities, including Calgary, Edmonton and Vancouver, housing prices are still between 10 and 15 per cent below what they were a year ago, Soper said. But they are “gaining back ground,” he said.

In Ontario, Royal LePage said Ottawa would likely see stable prices throughout 2009, with Toronto’s market stabilizing towards the end of the year.

Montreal is expected to remain a strong real estate market this year, helped by low interest and unemployment rates.

In Atlantic Canada, housing prices were much more stable than in cities further west in Canada throughout the recession, meaning that their pricing fluctuations have been less volatile overall, Soper said.

And according to the Royal LePage figures, demand for housing has so far been strong in 2009, due to strong local economies coupled with moderate housing prices.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090707/real_estate_090707/20090707?hub=CanadaAM

brought by Moishe Alexander, CFC CEO

The title search is a critical step in the real estate transaction, and quite possibly the most important step taken toward ensuring the transaction runs smoothly. In the process of conducting the search, the lawyer can determine if legislation concerning the Planning Act has been contravened; non-compliance with this legislation is fatal to any intended transaction. The lawyer can also determine if there are any registered liens on the property. If registered liens are discovered, it is the responsibility of the lawyer to deal with them immediately in order to avoid the serious consequences that can result if they are not handled properly.

Time is the essence of title searching. By conducting a search in a timely fashion, the diligent lawyer is able to provide the lawyer acting on behalf of the seller with a letter of requisition regarding any outstanding issues associated with the property. This letter can be explained as a series of inquiries and requests, with which the seller must comply, excepting exemptions in accordance with the conditions of the sale, arising as a result of a proposed purchase.

When the sellers solicitor receives the letter of requisition, the seller becomes obligated to resolve any issues that are detailed therein. In other words, this letter serves as a point from which communication begins between the legal representatives of the buyer and the seller to solve legal issues related to the property in question.

Once the title search is complete, the lawyer is in a much better position to provide an opinion of the property to the relevant parties, such as prospective lenders, who would rather secure their loan with a lawyers opinion of the propertys title before furnishing financing to the buyer, or insurance providers, for example, who require that the buyers lawyer is able to advise them of the state of the title to ensure the well-being of a title insurance policy before it is provided to the new owner(s).

This article has been published for educational purposes by the good folks with PropertySOLD Magazine. PropertySOLD combines the power of online and offline publishing to advertise FSBO real estate for its clients and puts a particular focus on educating people about selling privately.

http://www.bestlegalarticles.com/understanding-the-role-of-your-real-estate-lawyer.html

review by Moishe Alexander, CFC CEO

On the real estate front, the Newfoundland Government released their take on Newfoundland housing market conditions. While most of their data is from CREA and previously discussed earlier on this blog, I thought it important to “cut and paste” the PDF of the real estate section from the Economic Research and Analysis website as it recapped and touched on a number of important areas and facts.

Housing market conditions were robust in 2008. Housing starts increased to a level not seen since the early 1990s. Residential sales activity and prices reached record levels. Other capacity indicators like rental vacancy rates are at, or remain near, historical lows. Increased housing demand stemmed from strong economic performance, low interest rates, optimism about future major projects, and household formation.

Housing Starts

During 2008, housing starts totalled 3,261 units, up 23.1% compared to 2007. This was in contrast to activity in the Maritimes and Canada, where starts declined by 7.9% and 7.6%, respectively. While urban areas account for approximately two thirds of housing starts in the province, both urban and rural areas recorded significant gains in 2008. Urban housing starts were up 22.1% to 2,229 units and rural starts were up 25.2% to 1,032 units. Total housing starts are expected to fall to 2,648 units in 2009 as the global recession and slumping housing market in the rest of Canada weakens local consumer confidence. Since 1989, housing starts have averaged 2,333 units per year. Therefore, even with the decline expected this year, housing starts will be at relatively high levels for the local industry.

Residential Sales and Prices

Residential sales activity and prices increased to record levels last year. The number of residential properties sold in the province through the Canadian Real Estate Association’s Multiple Listing Service® (MLS®) during 2008 was 4,695, an increase of 5.0% from 4,471 in 2007.  This performance was in contrast to the national residential market. MLS® sales decreased by 17.1% in Canada and 8.9% in the Maritime provinces during 2008. According to CREA, the number of MLS® sales in the province is expected to decline by 14.8% in 2009 to 4,000.
Strong demand for housing, especially during the summer months, created a buying frenzy in 2008. The average number of active MLS® listings in the province (a measure of housing availability/supply) declined by 38.3% to 1,495 from 2,423 in 2007. Homes were being purchased as soon as they hit the market and sellers were receiving multiple offers — sometimes well above the asking price. As a result of increased demand, housing prices increased. During 2008, the average MLS® residential price was $178,477, an increase of 19.6% compared to 2007. The fourth quarter average MLS® residential price surged 27.2% over the fourth quarter in 2007, representing the only growth market in Canada.
Increased housing demand in recent years is the result of employment and income growth; household formation; low mortgage rates; and a positive business environment, facilitated in part by continued optimism surrounding a number of future major projects. In addition to these factors, industry indicated that demand for residential units was also being fuelled by expatriates living in other provinces and from residents who commute to other provinces for work purchasing property for personal use and/or investment purposes.

Rental Market
Rental vacancy rates are at or near historical lows throughout Newfoundland and Labrador. Vacancy rates in urban areas have decreased from a high of 15.4% in 1997 to just 1.1% in 2008. During 2008, vacancy rates were lowest in the St. John’s CMA (0.8%) and Corner Brook CA (0.9%), followed by Grand Falls-Windsor CA (1.9%), Gander (2.6%), and Bay Roberts CA (4.0%). Although vacancy rates are low, rental prices remain the lowest in Atlantic Canada. In 2008, the average rent for a 2-bedroom apartment in Newfoundland and Labrador was $596 compared to $635 in New Brunswick, $660 in Prince Edward Island, and $795 in Nova Scotia. It is expected that improved labour markets, positive netmigration, higher housing prices, and a lack of new rental construction will keep vacancy rates low and place upward pressure on rental prices.

http://www.stjohnsrealestateonline.com/economy-2009-newfoundland-real-estate-section/

Reviewed by Moishe Alexander, CFC CEO

It has been another busy month in Fort Saskatchewan Real Estate.

reviewed by Moishe Alexander, CFC CEO.

There were 32 Single Family Homes SOLD in the Month of May.

The Average Selling Price for a Single Family Home in May was $373,614 (an increase from $362,000 in the month of April).

It has been a busy start of the summer for Real Estate in Fort Saskatchewan with home prices increasing $10,000 from a month ago. Overall the price of a single family home in Fort Saskatchewan has dropped approximately $25,000 from last year (average selling price for a single family home in May 2008 was $399,900).

Source: REALTORS®  ASSOCIATION OF EDMONTON
AVERAGE AND MEDIAN MLS® SALE PRICES FOR DETACHED HOMES
FOR THE MONTH OF MAY

Check back next month and stay informed on your real estate market.

Coal's place.

Somewhere along our collective path, a home stopped being shelter, and became a house. Then it turned into an investment asset. Then a mark of social stature divorced from income or debt. Then an entire financial plan. And then a lot of us got into trouble.

Owning real estate is fine. But property does not a home make.

And just as Chris the new dad in the previous post seemed to confuse the two, so Coal in the note below wrenches us back to basics.

Most of us would not trade places, but many wish we might.

Hello Garth

Been following your blog for quite some time now, you pretty much nail it every time with what you post.  I got smart some 12 years ago and went the RV way of life.  Started out in a small fifth wheel trailer, living at one campground or the other always close to work.  I attached a pic of my current rig, which I paid for in cash last year. A luxury rig and we are very comfortable in this unit, me the wife and a 14 year old.  We park at my business where I own and operate a small truck repair facility for the winter months when I do the bulk of my work.  Seasonal camp in a campground about 10 miles away for the other 5 months of the year.

Business has been about 50 % down this last year.  So I layed off two guys and now it is just myself and my main guy working the shop. Everything I own is paid for and we have no debt, personal or business.  I own my receivables but none the less, we are making no money during this economic slump, but I am in a great position to weather these problems.  The last month or so our sales have picked up and my best scenario is too stay in my shop for as long as I can.  We have about 10 grand to fall back on, not alot, but we have no debt and my recievables are sitting around 40 grand right now with current bills in the business sitting around 10 grand.  I should also say that we got to this point from the economy but also from having to move our shop 4 times in the last year, can’t find a suitable shop, ok right now.  Also our previous trailer burned down last year and we had commercial insurance which paid out 50 %, shit, in ten months we spend 75 grand on two trailers and got back 17.  Big lumps.

My point of all this, is because we chose to live this lifestyle, our overhead in minimal.  I started my business 5 years ago and was able to save and pay out approximately 150 grand for equipment.  Save and pay for my boat, my custom dually diesel truck to pull my fiver, and a vehicle for the wife.  Had I had a mortgage and did like so many others do, finance everything, the last six months I would have lost everything and become bankrupt.  My wife does not work either, but helps out with some paperwork at the business, but mostly a full time mom looking after our 14 year old and also has time for our grandkids.

My mom has owned two houses, and says that every time she owns a house, it takes all the money.  My guy that works for me, has a half million house, and it takes everything he has to keep the boat afloat, wife working, and the parents living there to help. He carries no debt either with the exception of the mortgage, he and I both have not had credit cards of lines of credit for well over 25 years.

Getting close to 50 now and seriously thinking of some property in Northern Ontario where one day I can retire and park my trailer, fish and maybe work part time, have no idea of how much money I will have by then, maybe nothing, hinges on the economy.  Isn’t that a sad thing to say.

So keep up the good work with the blog as I look forward to each post on what you have to say.

Coal

http://www.greaterfool.ca/2009/06/12/big-lumps/
]]> http://moishe-alexander-cmhc2009.com/2009/06/moishe-alexander-presens-new-aspect-of-recession-big-lumps/feed/ 0 http://moishe-alexander-cmhc2009.com/2009/06/who%e2%80%99s-buying-cottages/ http://moishe-alexander-cmhc2009.com/2009/06/who%e2%80%99s-buying-cottages/#comments Tue, 16 Jun 2009 20:19:49 +0000 admin http://moishe-alexander-cmhc2009.com/?p=118 Just the other day, a past client gave me a call and told me they were ready to take the plunge…LITERALLY!  They love the home they’re in, but wanted a 2nd getaway by the lake. They’re timing couldn’t have been better! Canada, and in particular Ontario, has tons of exciting towns for us big city folk to relax in.    With the recent global economic downturn, recreational properties have become more affordable than previous years.  The search is now on for that perfect lake side retreat!

Also this week,  Re/Max Canada released their Recreational Properties Report.  What they’ve found is:

Generation X purchasers are poised to replace aging baby boomers as the major force in recreational property markets across the country, according to a report released today by RE/MAX.

The demographic shift was noted in the 2009 RE/MAX Recreational Property Report highlighting sales, pricing, trends and developments in 50 Canadian markets. The report found demand from Gen X (those born between 1965 and 1980) has nearly doubled over one year ago. Seventy-four per cent of markets surveyed this year reported a marked trend toward thirty-something buyers snapping up affordably-priced product, ranging from waterfront cottages to resort condominiums, compared to just 40 per cent in 2008.

“After being priced out of most markets for the better half of the last decade, Gen X purchasers now have the financial wherewithal to buy recreational product at virtually every price point,” says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “Gen X is ideally positioned to pick up any slack in recreational property markets caused by softer demand from baby boomers and retirees. They represent the next wave of recreational property owners in Canada and they know it.”

The financial strength of the cohort dovetails well with current market realities. Sixty-six per cent of recreational property markets surveyed reported a decline in the number of recreational product sold in the first four months of 2009, while 22 per cent indicated sales were either up or on par compared to one year ago. While the combination of inclement weather and a global recession clearly hampered sales activity earlier in the year, many major centres are currently experiencing an upswing in activity as the traditional cottage season gets underway.

“Much of the activity in the marketplace today has to do with the mindset of this particular generation,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “More important than the investment aspect is the commitment to lifestyle. The purchase of a waterfront home or a condominium is more than a simple transaction to Gen X purchasers – owning a recreational property underscores their dedication to family and balance.”

The time to buy has never been better. With four exceptions, recreational property prices have softened in most major markets across the country. Only on the Newfoundland Coast and in Ontario, from Innisfil to Oro, Kingston, and Beaverton, have values increased this year compared to 2008. Starting prices remain similar to one year ago and in some cases are even higher.

“While buyer’s market conditions exist virtually across the board, sellers of recreational properties from coast-to-coast are clearly content to wait out the storm,” says Polzler. “They are in no hurry to unload their product. Many have held on to their properties for generations – they’re fully-owned yet underutilized, which has prompted some aging owners to list them for sale.”

The report also found that while lowball offers are on the rise, very few meet with success. Through tough negotiations with multiple sign backs, purchasers who are serious tend to find out the hard way that sellers are serious too. As a result, the sales-to-list ratio remains relatively high in most recreational property markets across the country.

“The prospect of greater stability down the road is creating cautious optimism in the marketplace,” says Ash. “Purchasers are seeking to buy quality product, whether it be situated on lakes, rivers, or ponds, before values start to once-again edge up.”

Highlights:
• Supply is adequate in most markets, but heated activity in the lower-end has resulted in tight inventory levels for entry-level product in 18 per cent of markets including: Bancroft, Combermere, Honey Harbour/Port Severn, West Kawarthas, Orillia, Flesherton, North Saskatchewan, and Salt Spring Island.
• Older cottage owners, many who own their properties outright, are selling to younger purchasers with families.
• Some American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market.
• American purchasers have largely fallen off the radar, with some exceptions: Lake Winnipeg, Shediac Bay, and Sault Ste. Marie.
• Pent-up demand is a factor in the marketplace, as those purchasers who had intended on buying recreational properties in the latter half of 2008 deferred their purchases to 2009.
• Older Canadians continue to seek secondary homes in warmer parts of the U.S such as Florida, Arizona, California, and Nevada.
• Generation X purchasers are prepared to spend their hard-earned dollars on recreational properties, but at the end of the day, they want to know that they’ve negotiated the best deal possible.
• The upper-end has somewhat softened in markets across the country.

The full in depth report can be downloaded here .  I highly recommend giving it a read, as it covers cottage towns all over Canada. If you’d like the names of some great cottage property sales reps, send me an email, I’d love to help!

reviewed by Moishe Alexander, CFC CEO

The Hebron asset, which consists of the Hebron, Ben Nevis and West Ben Nevis fields, was first discovered in 1981. Chevron Canada Limited is the operator for the Hebron project with a 28 per cent working interest. The asset is located in offshore Newfoundland’s Jeanne d’Arc basin and is approximately eight km north of the Terra Nova oilfield. Partners signed a Unitization and Joint Operating Agreement in 2005. Hebron is a heavy oil reservoir with significant technical and commercial challenges and is estimated to have 400-700 million barrels of resources. Project partners include: ExxonMobil Canada (37.9%), Petro-Canada (23.9%), and Norsk Hydro (10.2%).

GREAT news for the St. John’s Real Estate Market!

Presented by Moishe Alexander, CFC CEO

http://activerain.com/blogsview/182340/hebron-ben-nevis-oil-project-a-go-for-newfoundland