According to statistics released by The Canadian Real Estate Association (CREA), actual (not seasonally adjusted) home sales, via the Multiple Listing Service® (MLS®) of Canadian real estate boards, totaled 147,351 units in the second quarter of 2009 – the fourth strongest quarterly sales figure ever. Up 1.4 per cent from the second quarter of 2008, this marks the first year-over-year increase in quarterly activity since the fourth quarter of 2007.

On a seasonally adjusted basis, national MLS® home sales numbered 114,173 units in the second quarter, jumping up a record 31.5 per cent from the first quarter of 2009.

“Potential buyers who moved to the sidelines late last year when economic uncertainty peaked are returning to the housing market now that the worst of the recession may be behind us,” said Dale Ripplinger, President of The Canadian Real Estate Association.

Seasonally adjusted resale activity in the second quarter was up from the previous quarter in about 85 per cent of local markets. Quarterly activity increases in Toronto (45 per cent), Vancouver (77 per cent), Montreal (33 per cent), Calgary (66 per cent) and Edmonton (39 per cent) contributed most to the national increase in activity.

Strong upward momentum for monthly sales activity was sustained throughout the second quarter. June marked the fifth consecutive month in which activity was up from month-ago levels. Some 41,304 homes traded hands via the MLS® of real estate boards in Canada on a seasonally adjusted basis in June 2009. This is up 8.7 per cent from May and represents the first time since January 2008 that monthly activity topped 40,000 units.

Actual (not seasonally adjusted) MLS® home sales climbed 17.9 per cent year-over-year to 54,616 units in June 2009. This is on par with the record for the month of June set in 2007 and is the fourth highest level for activity in any month on record.

The national MLS® residential average sale price reached the highest quarterly level ever in the second quarter of 2009. At $318,696, the average sale price was up half a percent from the previous record set in the second quarter of 2008.

The national average home price also scaled new heights on a monthly basis, climbing 3.6 per cent year-overyear to $326,613 in June 2009. However, only 13 local markets posted new average price records in June, less than a handful of which are among the most active or expensive. The strong rebound in sales activity, not price, in Canada’s most expensive markets is skewing average prices upward nationally and in some provinces, just as a sharp decline in activity in these markets skewed the average lower in late 2008.

MLS® home sales rebound in the second quarter. The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was up 1.7 per cent year-over-year in June 2009 – less than half of the percentage increase in the unweighted national average price.

The supply of homes coming onto the MLS® market continued retreating in second quarter. Seasonally adjusted MLS® residential new listings were down 16.9 per cent from the previous quarter to 197,049 units, the lowest level since the fourth quarter of 2005.

Nationally, the number of months of inventory was 4.2 months in June 2009. This is the lowest level since August 2007, and well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The residential dollar volume for MLS® sales jumped 40.6 per cent on a seasonally adjusted quarter-over-quarter basis in the second quarter of 2009, to reach $34.8 billion.

“Low interest rates have improved the affordability of homeownership, as have price adjustments in housing markets that previously experienced rapid price increases,” said CREA Chief Economist Gregory Klump. “Housing markets where negotiations recently favoured the buyer have become more balanced and the stage is being set for modest price appreciation as inventories are drawn down by sales.”

“Sales momentum remains strong going into the second half of 2009,” said CREA President Dale Ripplinger. “Chances are good that the number of transactions in the second half of 2009 will surpass levels in the first half of the year.”

http://www.myseatosky.com/blog/?p=231

reviewed by Moishe Alexande, CFC canadian funding corp CEO

WINDSOR, ON, July 8 /CNW/ – Ontario’s construction industry could weather
the economic downturn better than many other sectors as proposed government
infrastructure spending provides a soft landing according to figures released
today in the Construction Sector Council’s (CSC) fifth annual edition of
“Construction Looking Forward,” a detailed industry outlook scenario of labour
market trends from 2009 to 2017 in Ontario.
While the recession has weakened housing and industrial activity, other
construction sectors are expected to see employment gains in 2009 and 2010
associated with increased government infrastructure (highway, bridge and other
engineering) spending that potentially offsets employment losses.
Over the remainder of the outlook the overall economy recovers and the
expected increase in construction activity and the need to replace retiring
baby boomers translates into the demand for 135,000 new jobs over the next
decade.
“Due to the size and complexity of the Ontario market, there are varying
degrees of positive construction employment across the province, with the GTA
expecting to realize important gains in the short term,” said George
Gritziotis, Executive Director of the Construction Sector Council. “Despite
the downturn, employment numbers should remain steady as several proposed
major infrastructure projects across Ontario come on-line.”
The CSC report breaks down employment needs across five Ontario regions:
Northern, Eastern, Western, Central, and the Greater Toronto Area and each
have specific circumstances. The GTA will lead the province in construction
employment over the next few years as growth remains steady. Other regions of
the province however will feel the effects of the recession more strongly over
the next three years.
“Transportation and other infrastructure related projects will keep our
industry moving in the next few years,” said Rob Bradford, Executive Director
of the Ontario Road Builders Association. “Meeting industry’s demand will
require a workforce that is flexible as opportunities occur across the
province and workers will need to move to where the jobs are.”
Overall construction employment in the CSC trades is expected to increase
slightly from 2009 – 2011. From 2012 to 2017, growth in construction
employment will average 2.7% annually. These additions to the workforce will
come as the overall growth in the Ontario labour force slows to 1% or less.
Construction employers will be competing for a steadily growing share of the
provincial workforce.
“We need to continue to plan for our existing and future workforce
needs,” said Pat Dillon, Business Manager of the Ontario Building and
Construction Trades Council. “Governments need to step up apprenticeship and
recruitment programs, and put in place measures that include tax relief to
facilitate the mobility of our current displaced workforce to ensure that we
have the skilled labour ready to take on new projects and replace retiring
workers.”
“For Ontario’s construction industry, it remains imperative to promote
construction careers, attract youth and enhance training programs,” said Mark
Arnone, Director, Projects and Modifications, Ontario Power Generation
(Nuclear). “Future major industrial and engineering projects will need a
skilled work force to sustain growth and build Ontario’s future.”

The Construction Sector Council is a national organization committed to
developing a highly skilled workforce – one that will support the future needs
of the construction industry in Canada. Created in April of 2001, and financed
by both government and industry, the CSC is a partnership between labour and
business.
The CSC’s “Construction Looking Forward” national and regional forecasts
provide colleges, labour and industry with accurate information on labour
supply and demand to support the future needs of the construction industry in
Canada.
For a copy of the Ontario labour market forecast visit our website:
www.csc-ca.org.

http://www.dailycommercialnews.com/nw/12938/cb

viewed by Moishe Alexander, Canadian Funding corp CEO

Canadian Funding Corp points to here – what is hopefully one of the last of a once-robust breed – The Apocalyptic Canadian Housing Market Story:

Judging by the latest real estate data, the Canadian housing market could scarcely be better. Average home prices are up more than 16 per cent this year, and in May they hit an all-time monthly high, according to the Canadian Real Estate Association. By those numbers, Canada didn’t just sidestep the housing market crash that continues to plague the United States, it sailed right through it virtually unscathed. And yet, there are plenty of signs that the Canadian housing market is still sitting on some very shaky ground—and even the potential that Canada’s big housing crash is yet to come.

Yadda yadda yadda.

We all know that the proximate cause of the US recession was the bursting of its housing market bubble: it blew up banks, laid waste to personal balance sheets, and left millions of people stuck in homes whose mortgages were more than their market value.

And then Canada went into recession. Unfortunately, this set up the following error of logic that was repeated in all-too-many Canadian newsrooms:

1. The US is in recession because its housing market blew up.
2. Canada is in recession.
3. Therefore, Canada’s housing market must be blowing up as well.

And so it was the fate of any number of hapless Canadian journalists to be given assignments to bash out pieces that fit this narrative. But these exercises were all doomed to failure. The decline in house prices in Canada is a symptom of the recession, not its cause.

Let’s look at how house prices have behaved since 2003:

US house prices have fallen almost 40% (all changes are expressed in per cent log terms: 100 times the difference in the logs), while Canadian house prices are still within 10% of their peak. There are any number of lazy analysts who have swallowed the faulty syllogism enumerated above and have concluded that ‘Canada is following the US with a lag’. This only makes sense if you think that Canadian house prices rose for the same reasons that US prices rose, and that they have fallen for the same reasons that US prices have fallen. This is not the case. As has been documented at great length here and elsewhere, the Canadian economy has avoided the worst of the bubble and its consequences for the following reasons (among others):

1. We never had restrictions on interstate banking, so Canadian banks spread their assets and liabilities across Canada. (So it doesn’t matter if a local housing market goes bust).
   
2. We don’t have Glass-Steagal. The investment banks joined the retail banks some years ago.
   
3. We don’t have mortgage interest deductibility from taxes. So paying down your mortgage is a tax-free investment. So most people want to pay down their mortgages.
   
4. (Except in Alberta), mortgages are fully recourse. You can’t just walk away from a negative equity home and hand the keys to the bank; the bank will come after you for the difference.
   

Yes, house prices have fallen. But the linkages that make the US story so compelling don’t exist here. We don’t have banks that are blowing up. We don’t have massive waves of foreclosures (even the Globe and Mail has given up on its series of articles that culminated in this silliness). Nor do we have much in the way of evidence that lower house prices are causing undue inconvenience to Canadians: when Maclean’s decided to jump on the OMGWTFBBQ housing market bandwagon, the best it could could come up with in the way of a victim was some flipper of 7-figure Vancouver condos who got caught mid-flip. Boo-hoo-freaking-hoo.

Moreover, it’s becoming pretty clear that the decline in house prices is not so much a national story as it is one of falling house prices in Vancouver, Calgary and Toronto:

Vancouver is and always will be a special case whenever we talk about housing prices in Canada: its geography makes it extremely difficult for developers to respond to increases in demand. This is the sort of environment in which bubbles flourish so I’m not going to pretend that I can predict movements in Vancouver house prices. In Calgary, the incipient recovery in the oil sector will no doubt establish a floor on housing prices there fairly soon. And there’s even not-entirely-bad news out of Toronto these days. So I don’t see just how the national index is supposed to fall by another 30% or so.

It’s worth following the housing market numbers. But they are going to be at best a coincident indicator in this cycle.

http://worthwhile.typepad.com/worthwhile_canadian_initi/2009/06/the-housing-market-the-nonstory-of-the-canadian-recession-.html

reported by Moishe Alexander, CFC CEO

“The Government of Canada recognizes that streamlining approvals enables housing projects to avoid costly delays,” said Minister Finley. “By reducing red-tape and eliminating hurdles in planning and building regulations, these ACT grants will result in changes that will make housing more affordable and provide more housing options for Canadians.”

Operating since 1990, ACT provides grants up to $5,000, to local teams made up of municipalities, builders and housing stakeholders who promote the improvement of planning and building regulations in their communities to lower the cost of housing. ACT also offers a wealth of proven best practices and lessons learned so that communities can benefit from the innovations of others.

ACT is funded by CMHC and administered and delivered by the Federation of Canadian Municipalities (FCM), with the participation of the Canadian Home Builders’ Association (CHBA) and the Canadian Housing and Renewal Association (CHRA).

“ACT enables municipalities, home builders and housing groups to work together on regulatory reforms that support innovation. This results in tangible actions that improve housing affordability and choice,” stated FCM President Basil Stewart.

“Non-profit housing groups can benefit from the experiences of ACT project teams in addressing housing needs in their communities,” added CHRA President David Eddy.

“ACT grants support solutions that the home building industry and municipalities across Canada can use to expand housing affordability and choice, such as secondary suites.” said CHBA President Gary Friend. “ACT shares these regulatory reform solutions across the country so that others can benefit from them.”

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, healthy communities and cities across the country.

For further information please contact:

Michelle Bakos
Press Secretary
Office of Minister Finley
Tel.: 819-994-2482

Kristen Scheel,
Senior Media Relations Officer
CMHC-SCHL
Tel.: 613-748-2799

ACT Grant Recipients — June 2009

Affordable Housing Now — Designing Secondary Suites: Safe N’Sound Residence, Owen Sound, Ontario
A $5,000 grant to host an information booth showcasing design options for secondary suites at a local Home Expo, followed by a seminar-style workshop specifically geared to help interested homeowners move forward with secondary-suite construction projects.

Flexible Housing Suites in Affordable Townhouses: City of Abbotsford, B.C.
A $5,000 grant to host two workshops where municipalities with recent experience and communities with an interest in promoting flexible housing will be invited to attend. The City of Abbotsford is partnering with CMHC and Habitat for Humanity to build a flexible housing pilot project consisting of 12 to 14 townhouses, six of which would be designed and built with a secondary suite. This pilot project will look at the feasibility of more widely permitting secondary suites in townhouse units and at relaxing parking requirements. It will also introduce agreements to protect both the use and long-term affordability of the housing units.

Secondary Suites — Public Education Program: City of Victoria, B.C.
A $5,000 grant to offer a one-day open house at City Hall where residents can bring in their plans for secondary suites and be briefed on the regulatory process. It is intended that one-on-one discussions will provide greater clarity on what it takes to create secondary suites. The ACT grant will be used to plan and promote the open house, to communicate the regulatory changes and the financial incentive program to residents.

Workshop on Sustainable Communities and Housing: Town of Calmar, Alberta
A $5,000 grant to host a two-day workshop on affordable housing and community revitalization to discuss new ideas and rethink current policies and bylaws to develop more sustainably, and create more affordable housing.

Secondary Suites as an Affordable Housing Option: City of Prince Albert, Saskatchewan
A $5,000 grant to amend the zoning bylaw to allow secondary suites in all neighbourhoods of Prince Albert. The grant will be used to hold public consultation meetings on rezoning to permit secondary suites. It will also be used to do a city-wide education campaign to promote the value of secondary suites and inform residents of the building and fire requirements.

Water on the Ground: Water Efficiency Planning Workshop: POLIS Project on Ecological Governance, University of Victoria, B.C.
A $4,860 grant to develop and deliver a workshop for municipal staff to discuss water conservation planning and the regulatory barriers the building industry faces in implementing water efficiency technologies, including development charges and permit processes. Removing these barriers will potentially defer or avoid increased water infrastructure capital costs and reduce housing costs.

Legalizing Secondary Suites: City of Dawson Creek, B.C.
A $4,900 grant to hold a workshop with developers and community organizations to explore different regulatory options for enhancing affordability through legalization of basement suites and/or laneway housing. The project also aims to develop a secondary-suite bylaw that would be tailored to Dawson Creek.

Development Information Manual: City of Temiskaming Shores, Ontario
A $5,000 grant to prepare a Development Manual consolidating development application requirements and user-friendly guides for development within the City of Temiskaming Shores. This project will streamline the development application process within the City.

Kaslo and Area Affordable Housing Strategy: North Kootenay Lake Community Services Society, Kaslo, B.C.
A $5,000 grant to hold a workshop and a forum to explore options for creating policies to increase the affordable housing stock in Kaslo where the demand for vacation homes inflates housing prices and reduces housing availability for year-long residents. The project will look at how village-owned property can be utilized to improve housing affordability and availability.

Downtown Revitalization: Georgian Triangle Housing Resource Centre, Collingwood, Ontario
A $5,000 grant to hold a series of three workshops to encourage the creation of affordable rental housing in the unused space above commercial units within the downtown core of Collingwood. The project will examine the implications of the restrictive zoning bylaw regarding residential use above commercial space and solutions to regulatory barriers.

Sustainable Community Design for Subdivisions: Association of Municipal Administrators of New Brunswick, Fredericton, N.B.
A $5,000 grant to make on-line training modules available on conservation subdivision design. This project will expand audience outreach and help promote the implementation of conservation design where development is clustered in 50 per cent of the buildable area, protecting open space and reducing infrastructure and housing costs.

Capturing Condo Units for Affordable Housing: Kehilla Residential Program, Toronto, Ontario
A $5,000 grant to document, hold a workshop and present a recommendation for regulatory reform using the success of a project in Toronto. In this project, a developer received permission for extra density by transferring four condo units to a non-profit corporation, which will retain ownership of the units and keep the rents affordable in perpetuity.

Cortes Housing Initiative: Friends of Cortes Island, Cortes Island, B.C.
A $5,000 grant to hold a community workshop to look at changing the zoning to allow multi-family dwellings, cluster housing and land trusts. The changes aim to help over 30 families and 15 individuals who have housing during the winter months of September through May, but are camping from June to August when summer cottage owners return to the island.

Housing in Accessible Communities: SPARC BC Society, Burnaby, B.C.
A $5,000 grant to host a workshop for municipal staff and elected officials to provide a set of tools to build more accessible and inclusive communities. The workshop will present model bylaws, policy position and standards of adaptability and of universal design that municipalities can adopt to provide a regulatory framework to support accessible communities.

Farm Worker Housing Policy Review: Community Council, Victoria, B.C.
A $5,000 grant to undertake a review of farm worker housing policies and draft recommendations for the establishment of clear criteria to evaluate proposals for farm worker housing. The project aims to expand affordable housing choice for farm workers in the District of Central Saanich.

Development Services Workshop for Industry: Greater Vancouver Home Builders’ Association, Vancouver, B.C.
A $4,450 grant to host a forum on municipal planning processes and procedures to improve the working relationship between the residential construction industry and municipal staff. The goal is to have faster project approvals and subsequent project cost-savings for the consumer.

Renovation and Redevelopment: Get Ready Homeowners: City of Vancouver, B.C.
A $5,000 grant to hold two day-long information workshops aimed at homeowners who are planning a renovation or redevelopment. The workshops will focus on new land-use options emerging as part of the City’s EcoDensity strategy, such as laneway rental housing and use of basements for housing.

Backgrounder

Affordability and Choice Today (ACT)

Regulatory reform is a major concern to home builders and non-profit organizations looking for new ways to make housing more affordable. Municipalities also want to modify their regulations and update their procedures to make service delivery more efficient, while enhancing their community’s quality of life.

The Affordability and Choice Today (ACT) Initiative was created in 1990 to address these issues by funding and promoting practical solutions at the local level that overcome planning and building regulatory barriers to the development of affordable housing. ACT has documented these ideas in case studies and information sheets that can be downloaded from ACT’s website. This information is promoted at workshops, conferences and other events.

ACT provides grants of up to $5,000 to local teams made up of municipalities, private and non-profit home builders and other housing stakeholders. These teams use the grants to promote or initiate regulatory reform in their communities, aimed at increasing housing affordability and offering housing options that meet the community’s needs. Eligible projects must include a specific activity or product, such as a stakeholder consultation, survey, background research, workshop, open house or promotional material.

The initiative is funded by Canada Mortgage and Housing Corporation (CMHC) and administered and delivered by the Federation of Canadian Municipalities (FCM) with the participation of the Canadian Home Builders’ Association (CHBA), and the Canadian Housing and Renewal Association (CHRA).

Grant applications are selected by ACT’s National Management Committee, which represents the four partners. Applications can be submitted at any time.

With 158 projects complete, ACT has a rich database of solutions that local partners can benefit from in their future housing projects. Solution sheets and case studies from previously completed ACT grants are available on the website www.actprogram.com. Recently completed projects include:

• New Plan Reflects Northern City’s Unique Character: City of Iqaluit, Nunavut Territory
• A Plan to Regulate Residential Construction and Renovation: Atlantic Home Building and Renovation Sector Council, Nova Scotia
• Developing Laneway Housing: Terence Van Elslander and Jeffery Stinson, Architects, Toronto, ON
• Flex-Plex Housing: Industry-Municipal Partnership for Innovation: CHBA, Victoria, BC
• Task Force Charts New Path to Affordable Housing: City of Kelowna, BC
• Financing Conversion of an Institutional Building to Affordable, Accessible Apartments: Regional Municipality of York, Ontario
• Sustainable Aboriginal Demonstration Project Challenges Traditional Practices: Julia Bourke Architecture Inc., Montreal, Quebec
• Neighbourhood Infill Housing for Whistler’s Resident Workforce: Resort Municipality of Whistler, BC
• Building Code Options Reduce Renovation Costs for Inner-City Housing: New Life Ministries, Winnipeg, Manitoba

http://www.cmhc.ca/en/corp/nero/nere/2009/2009-06-23-0815.cfm

reviewed by Moishe Alexander, CFC CEO

“Households in the GTA have become more confident in purchasing a home over the past three months,” said TREB President Maureen O’Neill. “Affordability, due in part to very low borrowing costs, has played a key role.”

The average price for MLS® sales was $407,716, up by two per cent compared to last year. “Heightened interest in ownership housing this spring has solidified resale home prices,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “The number of home buyers has been high relative to the number of listings, pushing the average price above last year’s level.”

reviewed by Moishe Alexander, CFC CEO

http://eastyorktorontorealestate.com/gta-resale-housing-sales-up-19-per-cent-in-the-first-half-of-june/

An unused wing of a health centre has become affordable housing for seniors and people with disabilities. Armitage Gardens, in Newmarket in the Regional Municipality of York just north of Toronto, proved to be a cost-effective way of developing affordable housing. Originally, the Region planned to build new affordable housing, but the Newmarket Health Centre had a vacant wing, and it was more cost-effective to renovate than build.The renovated wing gives residents quick access to the Health Centre.

The Affordable Housing Solution Armitage Gardens has 58 apartments designed to meet the housing needs of seniors and people with disabilities. All the building’s common areas and apartments feature barrier-free design.Twenty-six units have enhanced accessibility, with automatic door openers, roll-in showers, and lowered kitchen counters and appliances.The rent for 52 of the units is geared-to-income (rents range between $350 and $400 per month), while six units are rented at market rate.

Internal hallways connect the complex to the Newmarket Health Centre, a longterm health care facility, allowing residents to visit family members who may be ill. The Health Centre’s kitchen also prepares meals for Armitage Gardens residents. The grounds are landscaped with mature trees, community gardens and a gazebo. Support services–including meal preparation, assistance with medications, personal care and housekeeping–are available at no cost.This allows residents to live independently while still receiving the assistance they need.

The Canadian Funding Corporation says that the total construction cost for Armitage Gardens was $8.4 million. Through the Affordable Housing Initiative CMHC and the province of Ontario provided a $1.56 million capital grant.The project also received 1.8 million through the CMHC Residential Rehabilitation Assistance Program (RRAP) of which $1,044,000 was provided through RRAP Conversion to help cover the costs of converting the wing into housing.To meet the needs of seniors and people with disabilities, $777,000 was contributed through RRAP Disabled to help cover costs of the project’s accessibility features. The Ontario Ministry of Health and Long- Term Care also provided support towards the project’s accessibility features.The Regional Municipality of York provided the property for the project, while the Town of Newmarket reduced development fees and charges.

Armitage Gardens is a good example of how all four levels of government can work together effectively to create affordable housing.The project won a CMHC Housing Award in 2006.