The Government of Canada announced today that 36 housing co-operatives and non-profit organizations located in the greater Outaouais region will receive more than $1.8 million through Canada’s Economic Action Plan, as part of the social housing renovation and retrofit investments.

The announcement was made by the Honourable Lawrence Cannon, Minister of Foreign Affairs and Member of Parliament for Pontiac, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

“Through Canada’s Economic Action Plan, our government is taking action to help ensure our economic recovery and create the conditions for long-term growth,” said Minister Cannon. “Funding renovation and retrofit projects, like these ones, will not only improve the quality of life of the residents by keeping their homes safe and affordable but also help stimulate the local economy and create jobs.”

The Government of Canada, through Canada’s Economic Action Plan, announced $1 billion for social housing renovation and retrofit. Of the $1 billion, $850 million is being delivered by provinces and territories on a cost-matched basis for existing federally assisted social housing projects that they administer on behalf of the partnership. The remaining $150 million is being delivered by CMHC for existing federally assisted off-reserve housing that it directly administers. Eligible repairs include general improvements, energy-efficiency upgrades or conversions, and modifications in support of persons with disabilities.

The housing co-operatives and non-profit organizations that will receive contributions from the Government of Canada being announced today are listed in the attached backgrounder.

“The financial contributions provided under the federal renovation and retrofit initiative administered by CMHC will benefit the residents of Shawville Apartments inc.,” said Dr. Earl Potvin, Chair of the Board of Directors, Shawville Apartments Inc. “In fact, these funds will serve to replace the windows to ensure our quality of life. We are very pleased to have received this funding, which will help improve the comfort and safety of our residents.”

According to data released today by the Canadian Real Estate Association, the number of homes sold in Canada in May, on a seasonally adjusted basis, was up for a fourth consecutive month. Moreover, it was 1.3% higher than in last September, that is, the pre-recession level. Today’s Hot Chart (left panel) shows that the turnaround in sales has been accompanied by a drop in new listings. As a result, the ratio of new listings to sales was the lowest in seventeen
months and well within the range where the market is considered balanced. This development reduces the risk of persisting home price deflation and of a corresponding deterioration in household balance sheet. On a regional basis, we note that sales in BC and Quebec more than recovered the ground lost since September. Even Ontario has
shown a significant pick-up in activity in recent months (see right panel).

NBF Financial Group…

http://www.news-to-use.com/2009/06/canada-existing-home-sales-back-to-pre.html

This report brought by Moishe Alexander, CFC CEO

Labour market to weaken in 2009

Employment was particularly strong in the area in the last 10 years. During that time, the number of jobs steadily increased, with the average annual growth rate exceeding 5 per cent. In 2008, there were 52,000 more jobs in the area than in 1998. This gain was mainly due to a job-generating economy, which made Gatineau the most dynamic CMA in Quebec. However, the area was not spared by the prevailing global economic conditions. Many Gatineau workers have already felt the effects, as job losses have been accumulating since July 2008. The unemployment rate, which was below 5 per cent in 2008, started to grow rapidly at the beginning of 2009 and reached 5.6 per cent in April. Over the past 12 months (from April 2008 to April 2009), close to 8,200 jobs have disappeared.

Migration still positive in the area

Despite the economic slowdown, the Gatineau area posted a fairly strong performance compared to other areas across Quebec, which will ultimately allow it to retain more people. Net migration has been positive since 1991 and will remain so this year and in 2010. According to the preliminary figures for 2008, there were 2,200 more in-migrants than out-migrants, and this surplus is expected to be maintained at around 1,900 people in 2009 and 2,000 people in 2010. Newcomers will arrive mainly from elsewhere in Quebec and other countries. Of course, the Gatineau area will attract people from other provinces, particularly Ontario, but will see as many individuals leave. At the beginning of the decade, many Ontarians were crossing the Ottawa River, but the wave has lost some momentum since 2006, even with the growing gap between the average home prices in Ottawa and Gatineau, which has now reached $95,000.

Mortgage rates

Mortgage rates are expected to be relatively stable throughout 2009, remaining within 25-75 basis points of their current levels. Posted mortgage rates will increase very gradually during the course of 2010, reflecting a rise in government of Canada bond yields. For 2010, the one year posted mortgage rate will be in the 4.75-6.00 per cent range, while three and five year posted mortgage rates are forecast to be in the 5.00-6.75 per cent range.

Resale market activity to decrease slightly in 2009 and 2010

Like the new home market, the resale market will record a slight decrease in 2009. Following a 10-per-cent reduction in sales registered through the Multiple Listing Service (MLS®) in 2008, transactions are expected to decrease by 9.5 per cent this year, before stabilizing in 2010. In terms of sales, close to 4,000 properties are forecast to be sold in 2009, or 400 fewer than in 2008. While relatively low interest rates are encouraging some people to borrow, several factors will have a cooling effect on consumers: the current home prices, the global economic slowdown and the uncertainty it brings, the difficulties experienced by some industries and the job losses in the area. Sales will therefore fall this year.

The Canadian Funding Corporation Reports:

OTTAWA, April 8, 2009 — The seasonally adjusted annual rate of housing starts increased to 154,700 units in March from 136,100 units in February, according to Canada Mortgage and Housing Corporation (CMHC).

“Higher multiple starts in Ontario and Quebec were the main contributors to the rise in new construction activity in March,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “While the multiples segment experienced the largest increase, the overall boost in starts was broad based, encompassing the singles segment as well.”

Moishe Alexander, of the Canadian Funding Corp noted that the seasonally adjusted annual rate of urban starts increased 17 per cent to 127,900 units in March. Urban multiple starts increased 28.3 per cent to 81,500 units, while urban single starts moved up by 1.3 per cent to 46,400 units in March.

March’s seasonally adjusted annual rate of urban starts increased by 35 per cent in Ontario and by 23.3 per cent in Quebec. Urban starts declined by 17.3 per cent in British Columbia, by 7.9 per cent in Atlantic Canada, and by 7.5 per cent in the Prairies.

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

New home construction is now at a more sustainable level after having been exceptionally strong over the past 7 years, exceeding 200,000 units per year.

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 more information, please see:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-04-08-0815.cfm

The gap between the proportion of renters and owners intending to purchase a home in 2008 has narrowed compared to intentions reported in 2007. The majority of purchase intenders (53 per cent) are renter households compared to 60 per cent in 2007. In Montreal, close to two-thirds of households intending to purchase a home currently rent, while in Vancouver only 44 per cent of purchase intenders are renter households.

In five of the ten markets surveyed, households were asked more detailed questions regarding their purchasing intentions. Thus, the remainder of purchase intention results cover only the five centres listed: Halifax, Montréal,  Toronto, Calgary, and Vancouver.

A larger share of households intend to buy single-detached homes and the majority intend to purchase a larger residence Among households who intend to buy a home in 2008, the largest share plan to buy a single-detached home (55 per cent). Also, a majority of intenders (67 per cent) plan to buy an existing home.

Just over a quarter of households who intend to purchase a home plan to purchase a condominium unit. Of those who intend to purchase a condominium, the majority are between the ages of 18 and 24 years. Vancouver has the largest proportion of condominium purchase intenders at 41 per cent this year.

The majority of households who intend to purchase a home plan to purchase a larger home (57 per cent) compared to their current residence, 20 per cent of households intend to purchase a smaller home, and 20 per cent intend to purchase a similar sized home compared to their current residence.

Across the ten markets surveyed, close to half of all homeowners reported having an intention to undertake home renovations valued at $1,000 or more in 2008. The share of households that intend to renovate in 2008 is greater than the share of households that undertook renovations of $1,000 or more in 2007 (31 per cent1).

The share of households that intend to renovate in 2008 is highest in Winnipeg and St. John’s at 50 and 48 per cent, respectively. Québec had the lowest share of households that intend to renovate in 2008 at 35 per cent.

In five of the ten markets surveyed, households were asked more detailed questions about their intended renovations. Thus, the analysis of the survey results for renovation intentions focus on these five centres: Halifax, Montréal, Toronto, Calgary, and Vancouver.

Moishe Alexander says: A renovation intender is defined as a household that either commenced a renovation in 2008 or that intends to begin a renovation in 2008 and plans on spending more than $1,000 on the renovation.

Maintenance and repairs are defined as any work made to keep a property in good working condition or maintain its appearance, while alterations and improvements are defined as any work made to increase the enjoyment, value or useful life of the property.

Among homeowner households that renovated in 2007, three quarters did some form of alteration and improvement to their home, while 42 per cent did maintenance and repairs. Eighteen per cent of households who renovated in 2007 completed both maintenance and repairs and alterations and improvements to their home.

Across the ten major centres, the incidence of alterations and improvements was highest in Calgary and Edmonton with more than 80 per cent of renovators in 2007. On the other hand, Québec and Montréal had the lowest share of renovating homeowner households that undertook alterations and improvements. As for maintenance and repairs, Québec and Montréal had the highest incidence of this type of renovation (48 and 45 per cent, respectively) while Edmonton had the lowest share.

In the ten major Canadian cities surveyed, 37 per cent of homeowner households renovated their primary residence in 2007. This was down slightly from 39 per cent in 2006. The share of  households who renovated last year was the largest in Winnipeg (44 per cent), Halifax (43 per cent), St. John’s (42 per cent), and Ottawa (40 per cent), while Calgary and Quebec (35 per cent) had the lowest share of households undertaking renovations in 2007.

Thirty-one per cent of homeowner households who undertook renovations remodelled a room, making this the most popular type of renovation completed in 2007. Painting/wallpapering and installing hard surface flooring/wall-to-wall carpeting followed with 27 and 26 per cent of households last year undertaking this type of  renovation, respectively.

Thirty-seven per cent of households in ten Canadian markets renovated their home in 2007.

According to CMHC’s Renovation and Home Purchase Survey, an estimated 1.5 million households in ten of Canada’s major centres indicated they had completed some form of renovation in 2007. This represents 37 per cent of homeowner households across the ten major centres, down slightly from 39 per cent in 2006.

The share of homeowner households who renovated last year was the highest in Winnipeg (44 per cent), Halifax (43 per cent), and St. John’s (42 per cent), while Calgary and Quebec had the lowest share with 35 per cent.

The share of households that intended to renovate in 2007 (46 per cent) was higher than the share of households who undertook renovations of $1,000 or more in 2007 (31 per cent)2.

In last year’s survey, households in Vancouver, Calgary, Toronto, Montréal, and Halifax indicated that they expected to spend, an average of $11,200 on renovations in 2007, where in fact, they spent an average of $13,200.