“Housing starts improved in both the singles and multiples segments in January,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “These increases are similar to the ones that occurred in December.”

The seasonally adjusted annual rate of urban starts increased by 4.4 per cent to 165,200 units in January. Urban multiple starts increased by 5.7 per cent to 76,300 units while single urban starts increased by 3.3 per cent to 88,900 units.

January’s seasonally adjusted annual rate of urban starts increased by 19.8 per cent in British Columbia, by 7.3 per cent in Quebec, by 2.3 per cent in Atlantic Canada, and by 1.5 per cent in the Ontario. In the Prairie region, the seasonally adjusted annual rate of urban starts decreased by 4.8 per cent.

Rural starts were estimated at a seasonally adjusted annual rate of 21,100 units in January².

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

Posted by Moishe Alexander.

In 2009, new home starts will reach 350 new homes from 428 starts recorded in 2008, contracting by 18 per cent. Single-detached starts are forecast to decline by 20 per cent, while row homes and apartments will decrease by 14 per cent. The downward momentum in the economy has lessened new construction demand. Also, slower population growth and less spill-over demand from the resale market have contributed to the slow down in demand for new homes. However in 2010, this trend will change due to the gradually improving provincial economy and declining new home inventories. The number of starts will increase by six per cent to 370 units. Demand for affordable housing is increasing. A number of social housing projects are planned or underway to accommodate the increased demand for this type of housing.

The new home price will average 343,000 in 2009 and 355,000 in 2010. New single-detached prices will de- crease by 0.6 per cent in 2009 as the prices adjust to slower demand, consumer cautiousness and less con- struction of high-value homes. As the economy recovers in 2010, new home prices will increase by 3.5 per cent.

In the longer term, new home construction is expected to increase. Migration will be a dominant element in increasing demand for new homes. With land constraints raising prices in other areas and improved transportation and infrastructure projects making Peterborough more accessible to Toronto, it’s expected to see more in-migration to Peterborough. Aging baby boomers will increase their movement to Peterborough, seeing it as an attractive place for retirement. Furthermore, improved economic conditions and job prospects in the region in the next several years will reduce out-migration.

As home prices and mortgage carrying costs rise, the demand for the more expensive homes will be tempered. More interest will be seen for higher-density forms of housing in coming years. Even though demand for single-detached homes will slow, this type of housing will remain the product of choice for homebuyers. Single-detached homes demand in Peterborough is supported by mature migrants mainly coming from Toronto, availability of land and the price differential comparing to other centres in Ontario.

Demand for resale homes is expected to moderate by four per cent in 2009 to 2400 from 2506 recorded in 2008. In 2010, we will see the same trend. Sales will register 2300 sold homes, a decrease of four per cent from 2009. Low carrying costs, a relatively low unemployment rate and affordable prices will help to limit the decline in demand in 2009. Some purchases, initially planned for 2010, will take place in 2009 as people buy before anticipated mortgage rate increases raising sales in 2009 and lowering them in 2010.

In 2009, sellers have been hesitating about entering the housing market. As a result, new listings will decrease by 13 per cent in 2009. Moreover, the fall of new listings will outpace the decline of sales. In 2010, more new listings will flow into the market as sellers respond to rising prices.

The combination of declining new listings and improving sales by mid- 2009 meant that the sales-to-new- listings ratio, a barometer of future housing price growth and a measure of market conditions, moved up. Peterborough’s resale housing market has been balanced through much of 2009, but moved into sellers’ territory during some months. In 2010, the market is expected to be in balance for most of the year. A balanced market is characterized by price growth around the rate of inflation. Peterborough prices will increase by about four per cent in 2010, faster than in 2009. Resale prices are expected to increase by 1.7 per cent this year to $234,500 from $230,656 registered last year.

The Government of Canada, the Government of Ontario, and the City of London today celebrated the opening 52 new affordable rental units. The project is supported by more than $3.6 million in funding under the Canada – Ontario Affordable Housing Program.

Ed Holder Member of Parliament for London West, 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 Deb Matthews, Member of Provincial Parliament for London North Centre and Minister of Children and Youth Services, on behalf of the Honourable Jim Watson, Minister of Municipal Affairs and Housing; Anne Marie DeCicco-Best, Mayor, City of London; and Brian Loubert, Vice-President of Homes Unlimited (London) attended the event.

“The Government of Canada is committed to making affordable housing available in London and across Canada for those who need it most,” said MP Ed Holder. “These new apartments provide more rental options for individuals and families in need of suitable, affordable housing. This is critical to the economic and social well-being of our London community.”

“Housing is simply essential to the stability of Ontario’s families,” MPP Matthews. “The projects we’re celebrating today will make a positive and significant difference in the lives of many.”

Today’s announcement recognized the official opening of Nelson Place located at 570 Nelson Street. The $7.6 million project will be occupied by individuals and families living on low income.

The federal and provincial allocations to the project were complemented by almost $1.3 million in municipal financial incentives.

“This opening is very important to all Londoners, as we continue to battle homelessness in our community and beyond,” said Mayor DeCicco-Best. “By partnering with other levels of government through the Canada – Ontario Affordable Housing Program, we move closer to realizing a national solution to the critical need for more housing across the country.”

”Nelson Place is Homes Unlimited’s seventh housing project and will provide a new home for 52 tenants in need of affordable rental housing,” said Greg Playford, President of Homes Unlimited (London). “We are pleased that the federal and provincial governments, along the City London, continue to provide the financial support that allows us to address the need for affordable housing in our community.”

The Canada – Ontario Affordable Housing Program Agreement, signed in 2005, comprises a commitment of $301 million from each of the two senior levels of government. In total, the federal, provincial and municipal governments will invest at least $734 million in the program, which will provide affordable housing for up to 20,000 households in Ontario.

Last fall, the Government of Canada committed more than $1.9 billion over the next five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and lending of up to another $2 billion to municipalities for housing-related infrastructure. Combined for Ontario, this means a further $1.2-billion joint investment under the amended Canada – Ontario Affordable Housing Program Agreement. The federal and provincial governments are contributing equally to this overall investment.

Larry Miller, Member of Parliament for Bruce – Grey – Owen Sound, 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), and Carol Mitchell, Member of Provincial Parliament for Huron-Bruce, on behalf of the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing, today announced $4.8 million to fund an affordable housing project for seniors, individuals, families and persons with disabilities.

The funding was made available as a result of a $1.2 billion joint investment under the amended Canada – Ontario Affordable Housing Program Agreement, which includes funding through Canada’s Economic Action Plan and by the Government of Ontario. The federal and provincial governments are contributing equally to this overall investment.

Today’s announcement celebrated the opening of 37 new affordable rental units and the allocation of funds for an additional 23 units. Both phases of the project are sponsored by the Owen Sound Municipal Non-Profit Housing Corporation, providing affordable housing for seniors, individuals, families and persons with disabilities in Owen Sound.

“The Government of Canada is helping Canadian seniors, individuals, families and persons living with disabilities during these tough economic times,” said MP Larry Miller. “Here in Owen Sound, this achievement gives hope to residents who need quality, affordable housing that meets their needs.”

“Our government is deeply committed to developing better ways to meet the housing needs of Ontario’s vulnerable populations,” said MPP Mitchell. “Through the construction of safe, new housing, we’re helping vulnerable people — seniors, families and people with special needs — establish and maintaining the stability that many of us take for granted.”

“We have identified a need for housing of this nature and it is very gratifying that our senior levels of government have stepped up and supplied these funds to allow this project to go forward. Owen Sound Municipal Non-Profit Housing Corporation has a proven record of building and maintain projects of this nature,” said Kevin Eccles, Warden of Grey County.

“I am absolutely delighted with this project,”said Ruth Lovell Stanners, Mayor of Owen Sound and Chair of County of Grey Social Services Committee. “Owen Sound has a critical need for affordable housing and with the units just built we are finally making some headway. Thanks must go to the Owen Sound Municipal Non-Profit Housing Corporation for their role in driving this project with the federal and provincial partners.”

The Government of Canada wants to ensure that Canadians on fixed incomes can live with independence and dignity and remain in their communities, close to family and friends. Canada’s Economic Action Plan provides $400 million, over two years, to build new rental housing for low-income seniors. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

The announcement was made by the Honourable Michael Chong, Member of Parliament for Wellington – Halton Hills 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 Town of Erin has been approved for more than $286,000 in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP), to repair and reconstruct residential streets in the hamlet of Hillsburgh.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Chong. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for Hillsburgh, but also for Ontario.”

Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

“It is a pleasure to find all levels of government working together to address the infrastructure needs of local municipalities,” said Town of Erin Mayor, Rod Finnie. “We appreciate the involvement of CMHC in providing loans for the local portion of the infrastructure costs.”

Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.

More information on this and other measures in Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and protect those hit hardest by the global recession, can be found at: www.actionplan.gc.ca.

Phil McColeman, Member of Parliament for Brant, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation; Dave Levac, Member of Provincial Parliament Brant, on behalf of the Honourable Jim Watson, Minister of Municipal Affairs and Housing; Mike Hancock, Mayor of Brantford; and affordable housing sponsors Meadows Court Properties Inc., Multani Custom Homes Ltd., Telephone City Developments Ltd., 1372360 Ontario Inc., Freedom House International Church and Brant Native Housing attended the event.

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it most,” said MP McColeman. “These projects will give individuals and families of Brant and Brantford access to safe and affordable housing that meets their needs.”

“This is great news for Brantford said MPP Dave Levac. ”Once again, the provincial and federal governments have teamed up with the City of Brantford to develop and provide affordable housing for those that need it most. In addition, we have given a boost to the local economy, making Brantford a great place to live, play and raise a family.”

Today’s announcement recognized eight affordable housing projects in Brantford funded under the Canada – Ontario Affordable Housing Program:

* The official opening of a 6-unit project sponsored by Brant Native Housing Inc. The project received $420,000. The units will be occupied by low-income individuals and those with special needs.
* The start of construction of Alfred Street Apartments, a 39-unit project sponsored by Multani Custom Homes Ltd. The project received $2.3 million. The units will be occupied by low-income families and individuals and those with special needs.
* The start of construction of a 24-unit project sponsored by Meadows Court Properties Inc., located in Paris. The project received $1.4 million. The units will be occupied by low-income individuals and those with special needs.
* The official opening of an 11-unit project sponsored by Meadows Court Properties Inc. The project received $550,000. The units will be occupied by low-income individuals and those with special needs.
* The start of construction of a 15-unit project sponsored by Freedom House International Church. The project received $750,000. The units will be occupied by low-income individuals and those with special needs.
* The start of construction of the McCutcheon Lofts, 34-unit project sponsored by Telephone City Developments Ltd. The project received $1.7 million. The units will be occupied by low-income families and individuals.
* The official start of construction of Winniett Street Apartments, a 32-unit project sponsored by Meadow Court Properties. The project received over $1.78 million. The units will be occupied by low-income families and individuals and people with special needs.
* The official opening of the Uptown Downtown Suites, a 10-unit project sponsored by 1372360 Ontario Inc. The project received $600,000. The units will be occupied by low-income families and individuals and those with special needs.

The federal and provincial allocations to the project were complemented by more than $900,000 in municipal financial incentives.

“The City of Brantford is pleased to have participated with the federal and provincial governments in providing these much needed additions to the housing stock in our community,” said Mike Hancock, Mayor of Brantford. “These projects not only keep the local economy thriving, but they work towards a shared goal of building strong communities where everyone has a place to call home.”

“The County of Brant is pleased to celebrate the start of construction of 130 West River Street in Paris, alongside our federal and provincial government partners,” said the Mayor of Brant County, Ron Eddy. “This affordable housing project is another fine example of the re-use of a heritage building and we are pleased that Meadows Court Properties is producing another attractive, affordable housing project in our municipality.”

The Canada – Ontario Affordable Housing Program Agreement, signed in 2005, comprises a commitment of $301 million from each of the two senior levels of government. In total, the federal, provincial and municipal governments will invest at least $734 million in the program, which will provide affordable housing for up to 20,000 households in Ontario.

Last fall, the Government of Canada committed more than $1.9 billion over the next five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and lending of up to another $2 billion to municipalities for housing-related infrastructure. Combined for Ontario, this means a further $1.2-billion joint investment under the amended Canada – Ontario Affordable Housing Program Agreement. The federal and provincial governments are contributing equally to this overall investment.

If we have to give ourselves complete relaxation we have to think of our future expenses. This is definite that the rates of the entire things are rising and they will be rising in future also. So we have to study and inspect our procedures of earning and saving. At least today, we can consider and buy a good house for ourselves or we can even buy a property, but I think in future it would become more difficult for us to even think of buying any major property. Taking the financial assistance from the mortgage companies could help us to a great extent. We can be at ease while following their Cheap home mortgage rates. I think this is the right time we can invest our money towards buying a property. Once we secure ourselves financially, then we are mentally relaxed also.

I was planning to buy a big house for myself. At present I stay in two bedroom flat, but wanted to buy a bigger one. For this I needed adequate finance and then my friend advised me to approach the Mortgage rates Ontario. It is not that I did not have funds at all. I had quite funds which I could use as down payment. When I visited the Mortgage Rates Ontario, I found that this is the best place I was looking for a mortgage. Their Cost-effective home loan procedures were unique and simple too. After a careful discussion with their agent, I decided to fix the Home Loan which I considered was the best for me.

http://www.articlefeeder.com/blog/real-estate/17563-cost-effective-home-loan-process-is-convenient-at-mortgage-rates-canada

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

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

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

Interesting news, presented by Moishe Alexander, CFC CEO

The Royal Bank says the Canadian economy will shrink by 2.4 per cent this year, due in part to the substantial 5.4 per cent annual GDP contraction in the first quarter.

That’s the worst quarterly economic performance since 1991 and likely the worst in the current recession.

“Our forecast is for the second quarter’s contraction to be smaller, although, like the United States, Canada is facing the headwinds from the auto industry’s problems,” the bank says.

“The outlook for the consumer for the remainder of this year is a mixed bag. Spending has sagged in recent months as the financial market crisis and job cuts took a large bite out of confidence and sent consumers to the sidelines. However, with interest rates falling to all-time lows and impending government spending programs expected to limit the number of jobs lost, a moderate rebound in spending is likely later this year.”

It also said activity in Canada’s real-estate markets has already picked up, with sales of existing homes rising 11.2 per cent in April, marking the third monthly increase compare car insurance rates.

The Royal predicts growth will return next year as the U.S. and Canadian economies benefit from low interest rates, firmer credit markets and government stimulus programs.

“Export demand is likely to rise as commodity prices stabilize and the U.S. economy (still Canada’s biggest trading partner) climbs out of recession. However, tempering this source of future strength will be an attendant rise in imports, reflecting both increasing Canadian domestic demand and an appreciating loonie.”

In a forecast of the provincial economies in Canada, the bank says growth will hit 2.5 per cent next year.

After shrinking this year because of lower energy prices, Newfoundland will lead all the provinces in growth in 2010, while Ontario and Prince Edward island will have the slowest growth.

The bank says the national jobless rate will hit nine per cent, compared with an average of 8.5 per cent this year.