Moishe Alexander and Canadian Funding Corporation Review CMHC Reports

Posted by Moishe Alexander

Funding of $7.68 million for 64 new affordable housing rental units for seniors and persons with disabilities living on low income was announced today in Sudbury.

The Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and the Honourable Rick Bartolucci, Ontario’s Minister of Community Safety and Correctional Services and Member of Provincial Parliament for Sudbury, on behalf of the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing; along with John Rodriguez, Mayor of Greater Sudbury made the announcement.

“The Government of Canada is helping Canadians during these tough economic times and giving hope to seniors and persons with disabilities who need quality, affordable housing that meets their needs,” said Minister Finley. “This investment is possible through Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and create jobs during the global recession. For Ontario, this includes a $1.2 billion joint investment.”

“New housing initiatives like the one announced today add significant support to the Province`s efforts to reduce poverty and are welcomed here in Sudbury,” said Sudbury MPP Rick Bartolucci. “Ontario will continue to work with its federal and municipal partners to ensure new affordable housing units are built during the life of this program.”

“I am extremely appreciative of the support Greater Sudbury residents are receiving today from the Province of Ontario and the Government of Canada,” said Greater Sudbury Mayor John Rodriguez. “Finding a home in these new units will lift an enormous burden from the shoulders of someone who lives on a fixed income. We all deserve a safe place to call ‘home’, and I look forward to the day that the keys to these 64 apartments will turn in the locks.”

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 $475 million, over two years, to build new rental housing for low-income seniors and persons with disabilities. 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.

Canada’s Economic Action Plan builds on the Government of Canada’s commitment in 2008 of more than $1.9 billion, over the next five years, to improve and build new affordable housing and help the homeless.

Today’s announcement celebrates funding for 64 new affordable rental units at Copper Street Apartments, 192 Copper Street in Sudbury. The project is sponsored by Dalron Construction Limited.

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Posted by Moishe Alexander

The CMHC forecast calls for 900 single-detached starts in 2009 followed by 1,000 in 2010. The 2009 production will be the lowest number of single starts since 2005 when there were 751 foundations poured. The decline in single-detached starts in 2009 compared to 2008 is due to a number of factors, including managing a build-up in the supply of new housing units, consumer resistance to price escalation, and heightened competition from resale housing. Reduced in-migration and a moderating economy in 2009 have also played a role in this market adjustment.

At mid-year, single-detached starts were 65 per cent below the historically high 2008 figure for the same period. The slowdown in new construction has allowed the inventory of complete and unabsorbed units to decline and a stronger second half of production is expected. At the end of August, single-detached starts had recorded two consecutive months of year-over-year increases. Though there has been a recent uptick in starts activity, CMHC expects builders will limit production to prevent a rise in inventory.

In terms of total supply, there were more than 800 single-detached units under construction or completed but unoccupied at the end of August. While this is the third highest supply on record for the month of August, total supply has been in decline, on a year-over-year basis, since December 2008.

The bulk of single units in supply are those in various stages of construction. The units under construction have been declining on a year-over-year basis since October 2008. The decline in the units under construction figure is due to slower starts since June 2008. As stated, only recently have starts increased on a year-over-year basis.

The number of single units that are completed and unoccupied now lies at 142 units, up from 115 one year earlier. Though higher than last year at this time, the completed and unoccupied count has seen monthly declines since December 2008 when inventory peaked at 244 units. Competition from the resale market may be having an impact on new single absorption. Industry sources state that investors who purchased new homes in the previous two years are now creating competition for homebuilders by listing their homes on the resale market at competitive prices.

To the end of August, there have been 757 single absorptions in 2009 compared to 819 at this time in 2008. Average absorption now stands at 95 units monthly compared to the 110 units absorbed monthly in 2008.

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Posted by Moishe Alexander

Residential construction and existing home sales levels
in Halifax are expected to rebound in 2010 following declines in 2009, according to
Canada Mortgage and Housing Corporation’s (CMHC’s) Housing Market Outlook
released today.
“New home construction in Halifax will rebound by 16 per cent in 2010,” said Matthew
Gilmore, senior market analyst with CMHC’s Atlantic Business Centre. “Employment
and wage levels have hit new record highs in 2009 while interest rates have been
historically low. These factors will be supportive of growth in the industry in 2010,”
Gilmore said.
Apartment-style construction will outpace other styles with 800 units expected to start in
2010 – an increase of 33 per cent.
Existing home sales will rebound by over six per cent in 2010. The average price of an
existing home is expected to climb by 2.5 per cent reaching $243,500 next 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. 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.

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