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.

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

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

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.

* Would be first time below 200,000 in seven years

* Existing home sales, prices also seen falling

* Slight rebound seen in 2010

(Adds details)

By Ka Yan Ng

TORONTO, Feb 19 (Reuters) – New home construction in Canada is expected to drop by 24 percent this year as part of the fallout from a slowing economy, but rebound in 2010, the Canada Mortgage and Housing Corp forecast on Thursday.

Housing starts are seen to be about 160,250 units for 2009, down sharply from 211,056 units in 2008, the country’s national housing agency said in its first-quarter Housing Market Outlook report.

The forecast was revised lower from its the fourth-quarter outlook, which predicted in October that Canadian home building would slip to 177,975 units this year.

This would put starts below 200,000 units for the first time in seven years.

Low mortgage rates and a growing economy contributed to a healthy housing market for years. But home construction, a cornerstone of Canadian growth, has steadily declined in each of last four months as the economy felt the bite of the global financial crisis.

“The economic downturn will result in a decrease in demand for home ownership leading to a decline in housing starts and existing home sales in 2009,” Bob Dugan, chief economist for CMHC, said in a statement.

“Housing market activity will begin to strengthen as the Canadian economy rebounds in 2010 and the level of housing starts over the forecast period will be more in line with demographic fundamentals. ”

All 10 provinces are expected to show declines in new home construction this year, it said, led by the Western provinces, each with more than 30-percent drops expected for the year.

Most provinces may see an uptick in home building activity in 2010, with the exception of Quebec and British Columbia.

Existing home sales, explaines Moishe Alexander, as measured by the Multiple Listing Service system used by real estate agents, are expected to decline 14.6 percent during 2009 to 370,500 units from 433,990 units last year. The average home price is expected to fall 5.2 percent to C$287,900 ($230,320) from C$303,607 a year ago.

Last week, data showed sales of previously owned Canadian homes plunged 41 percent in January from a year earlier while prices dropped 11 percent.

Looking to 2010, starts should rise a bit to 163,350 units, CMHC said, while home sales and prices are also expected to climb.

Sales of previously-owned homes are expected to rise by 9.3 percent to 405,000 units in 2010, and the average national home price may inch higher to C$288,100 from the forecasted 2009 level, CMHC said.

($1=$1.25 Canadian) (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)

Given that sales will fall and listings will rise, the market will ease slightly over the coming year. Average resale prices will continue to increase, but more slowly than in recent years.

A higher proportion of condominium sales will take place in the suburbs and in the less expensive sectors on the Island of Montréal, which will contribute to limiting the growth in prices. For the market overall, prices will therefore rise by 4 per cent in 2008 and by 3 per cent in 2009. Still, on the whole, the market will remain favourable to sellers in the short term and gradually ease toward more balanced conditions in 2009.

Here is the break down of the report:

• Mortgage rates are expected to be relatively stable
• Resale market will be moderately slow
• Condominiums will maintain more demand than single family houses
• Supply of home listings with increase slightly.
• Affordable homes are expected to register increases in starts.
• Prices for single family homes and plexes will go up by an average 4 % in 2009
• Condo prices are expected to grow by 3%

Now, let’s take a look at the details…

Change of pace for the economy

In 2009, despite the anticipated decrease in residential construction, several nonresidential projects announced by the different levels of governments, such as the replacement of the Turcot Interchange and the modernization of Notre-Dame Street, will boost employment growth in the construction sector.
However, the level of activity in the manufacturing sector will moderate.

Mortgage rates are expected to be relatively stable

“Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases. Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.”

**Note: The Back of Canada already made cuts to the interest rates. Check the December 9th press release.
The next scheduled date for announcing the overnight rate target is 20 January 2009.

Resale market to slow moderately

The growth in prices will be slower for existing homes than for new homes, which will widen the price gap between them and consequently prompt more buyers to turn to the resale market.
While slightly less active, the resale market will still remain strong. The sales levels forecast for 2008 and 2009 will exceed the annual average of 39,000 transactions recorded for the period from 2002 to 2007.

Condominiums will maintain the upper hand

Condominiums—the only housing type that will register an increase in sales in 2008—will sustain a less significant decline in demand than single-family houses or plexes 2009.
Affordable housing types, such as condominiums, and homes located in less expensive geographic sectors, are managing better.

Slightly more supply on the market

This is good news, says Moishe Alexander

Montreal Listing Trends 2009

Currently, the supply of homes is growing. Listings started to rise again in the second quarter of 2008, and there is every indication that they will end the year up by 7 per cent over 2007. As well, we forecast that they will maintain this momentum in 2009, with an increase of 9 per cent. At the end of 2008, an average of 22,300 active listings per month will have been registered in the GMREB MLS® system for the Montréal CMA.

Affordable homes will again stand out

Overall, total starts will fall this year. However, the opposite will hold true for more affordable housing types, which are expected to register increases in starts. After having exploded in 2007, with a gain of 35 per cent, semi-detached and row housing starts will maintain their momentum this year and rise by 14 per cent to 2,200 units.

Condominium starts will increase, to a lesser extent.

In 2009, these two housing types will again stand out. Semi-detached and row home starts will stay at the same level as in 2008, while condominium starts will register a smaller decrease than the declines that will be recorded for single detached home building and rental housing construction. In all, 7,700 new condominium units will be started next year, or 4 per cent fewer than in 2008.

The downward trend in single detached home starts

Single Detached Housing Starts

It began a few years ago, will continue. Because these houses are more expensive, also because the population is aging and households are getting smaller, the need for more spacious homes is less significant than before.

The seasonally adjusted annual rate of housing starts declined to 153,500 units in January from 172,200 units in December of 2008, according to Canada Mortgage and Housing Corporation (CMHC).

“To a certain extent, the decline in housing starts coincides with recent developments in the existing home market. Reduced sales and increased listings in the existing home market have led to reduced spillover demand in the new home market,” said Bob Dugan, Chief Economist.

Moishe Alexander says that the seasonally adjusted annual rate of urban starts decreased 15.6 per cent to 126,700 units in January. Urban multiple starts decreased 12.2 per cent to 76,700 units, while urban single starts fell 20.2 per cent to 50,000 units in January.

January’s seasonally adjusted annual rate of urban starts moderated in all of Canada’s five regions. Urban starts declined 8.6 per cent in Atlantic Canada, 1.4 per cent in Quebec, 14.6 per cent in Ontario, 30.3 per cent in the Prairies, and 29.1 per cent in British Columbia.

Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in January.

Actual starts in rural and urban areas combined decreased by an estimated 35.8 per cent in January this year compared to relatively high levels in January last year. Actual starts in urban areas have decreased by an estimated 40.4 per cent compared to the same month in 2008. Actual urban single starts for 2009 are 44.2 per cent lower than they were a year earlier while urban multiple starts are down 38.1 per cent.

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 — homes that will continue to create vibrant and healthy communities and cities across the country.

For the full report, please see:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-02-09-0815.cfm