After declining significantly at the beginning of the year, the Montréal census metropolitan area (CMA) housing market has been showing signs of picking up for the past few months. This increase in activity on the housing market is coinciding with an improvement in economic conditions, as several indicators are suggesting that economic growth will soon resume. In this environment, the housing market will be relatively stable in 2010, for both residential construction and resale activity.

Economic conditions have substantially improved since the beginning of the year, as the financial crisis is largely over. Governments’ expansionary monetary and fiscal policies allowed for the massive injection of capital that stabilized the financial markets and revitalized the economies.

In Quebec, the economy is showing signs of an imminent recovery, and GDP is expected to grow in 2010. Employment, which tends to start growing again with some lag behind the economic cycle, should pick up slowly during 2010. The number of jobs should fall by 1.3 per cent this year, which should drive up the unemployment rate to 9.5 per cent in the Montréal CMA. After having increased rapidly since the beginning of the year, the unemployment rate has been rising more slowly in the last few months, as employment has stabilized to a certain extent. Even if the worst of the job losses is now over, the labour market will remain anemic, with a small gain in jobs (+0.4 per cent) next year, which will limit income growth and housing demand. In 2010, the unemployment rate should reach 9.6 per cent.

During the period from September 2008 to September 2009, employment in the Montréal CMA declined by 1.1 per cent from the previous twelve months, as around 21,300 jobs were eliminated. The losses were concentrated in full-time jobs ( 1.3 per cent), as part-time jobs rose slightly (+0.1 per cent). As well, the job cuts particularly affected young people aged from 15 to 24 years ( 3.5 per cent) and also people aged from 25 to 44 years ( 1.3 per cent).

The financial sector has been the hardest hit by the job losses for the past year. In the midst of the crisis that shook the financial markets, the companies in this sector cut their workforces by more than 10 per cent in one year. In all, about 15,000 jobs were eliminated in this sector. The improvement of the situation on the financial markets now seems to have stemmed the hemorrhage of jobs in this sector.

A more significant sector in terms of number of jobs, trade–and more particularly retail trade–also registered considerable job losses in the last twelve months ( 7 per cent). In fact, more than 16,000 jobs were eliminated in this sector, but the situation should stabilize over the coming quarters, as economic conditions improve.

After having declined for four consecutive years, employment in the manufacturing sector seems to have stabilized in recent quarters but, with the strong Canadian dollar, the recovery in this sector remains uncertain. The slowdown of the Montréal housing market at the beginning of 2009 sharply affected employment in the construction sector, which had posted two years of solid growth. The massive investments in infrastructure will support employment in this sector in the Montréal area in 2010.

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

ST. JOHN’S, January 20, 2009 — With the support of the federal and provincial governments, Choices for Youth’s Lilly Building Project will fill a significant housing gap within the city by combining 14 safe affordable housing units with on-site support, a basic literacy and math skill program, and an employment preparation program.

According to Moishe Alexander, the project has received a total of $2.29 million in funding from various federal – provincial initiatives to offset construction costs: under the Canada – Newfoundland and Labrador Affordable Housing Program, cost-shared 50/50 with the federal and provincial governments, ($900,000), the federal Housing Trust Funds ($680,000), the National Homelessness Initiative ($550,000), and the federal – provincial Residential Rehabilitation Assistance Program ($164,000). In addition, the project also received Seed Funding directly from Canada Mortgage and Housing Corporation (CMHC) to assist during the initial planning stages.

In addition, the Government of Newfoundland and Labrador has invested a further $533,000. The Department of Environment and Conservation is providing $400,000 through the Newfoundland and Labrador Green Fund to address energy efficiency measures being undertaken during project renovation. Also, the Department of Human Resources, Labour and Employment is contributing programming funds of $103,000, and the Department of Health and Community Services is contributing $30,000 for employment program costs.

The Honourable Charlene Johnson, Minister of Environment and Conservation, and also on behalf of the Honourable Trevor Taylor, Minister Responsible for Newfoundland Labrador Housing (Housing), and Member of Parliament, Randy Hoback 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), made the announcement today.

“As a province, we recognize that one of our most valuable assets is our youth who are vital to the prosperity and growth of our future,” said Minister Johnson. “This project sends a clear message to young people in our community — they are important and we are working to provide them the support that will help them reach their full potential.”

The aim of the project is to take a multi-faceted, holistic approach to recurring homelessness by removing lifestyle, housing, educational and employment barriers. Youth will be supported in learning the skills to live independently and securing opportunities to make healthier lifestyles more sustainable. The future vision for the project is to incorporate a social enterprise which would provide youth with much-needed hands-on employment experiences and financial sustainability.

“The Government of Canada is committed to making affordable housing available in Newfoundland and Labrador and across Canada for those who need it most,” said Mr. Hoback. “The creation of these units here in St. John’s will provide youth access to safe affordable and quality housing, helping them to build a stronger future.”

Moishe Alexander stated that since the renovation and construction of the Lilly Building began, in September 2008, ten youth have been learning valuable construction skills as they work alongside contractors and trades people. These youth were referred to Choices through various programs across the city, received safety and basic construction training at the Carpenters Millwrights College.

“Through all the programs at Choices, we recognize that youth need safe, affordable housing and opportunities to support themselves through employment,” said Sheldon Pollett, Executive Director of Choices for Youth. “This new affordable housing facility will enable an extremely vulnerable population of youth to make sustainable long-term changes in their lives.”

Once completed, the facility will provide 14, one and two-bedroom apartments, along with programming and office space. One of the apartments will be completely wheelchair accessible.

For more information:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-01-20-0730.cfm