The Government of Canada announced today that the City of North Battleford has been approved for an infrastructure loan as part of Canada’s Economic Action Plan. The announcement was made by the Agriculture Minister Gerry Ritz and Member of Parliament (Battlefords – Lloydminster) on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said Minister Ritz. “This program is opening the door for municipalities to meet their housing-related infrastructure needs. Canada’s Economic Action Plan will continue to create jobs, stimulate communities in all corners of the country, and support Canadian workers and families.”

North Battleford has been approved for $2.5 million in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP), to increase the water treatment capacity at the groundwater supply water treatment plant #1. The expansion will better utilize the existing groundwater supply facilities, will improve the availability of treated water storage and will reduce produced water loss for residents of North Battleford.

“The $2.5 million CMHC Municipal Infrastructure loan will help our city meet an increasing demand for water in North Battleford,” said North Battleford Mayor Ian Hamilton. “Site preparation for the expansion of Water Treatment Plant No.1 is now underway and the entire project will be complete by March 2011.”

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.

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.

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.

Demand for rental apartments in both the Kitchener and Guelph CMAs decreased in October 2009. The average vacancy rate for privately- initiated rental apartments in the Kitchener CMA increased to 3.3 per cent from 1.8 per cent in October 2008. In the Guelph CMA, the vacancy rate rose to 4.1 per cent from 2.3 per cent last October.

A number of factors, both demographic and economic, contributed to the decreased demand for rental accommodations. These factors included renters moving to home ownership, higher unemployment and lower demand from young adults. Although the main reason vacancy rates were up was a decrease in demand, additional rental housing which was not completed in time to be included in the survey but was available for occupancy before the survey also had some impact.

Many first-time buyers made the move to home ownership and vacated their rental units in 2009. Mortgage rates decreased to their lowest level in more than 60 years. With the uncertainty in the economy, home price growth was limited. As a result, mortgage carrying costs became more affordable. First-time homebuyers who had remained on the sidelines in the final quarter of 2008 and the first quarter of 2009, propelled sales of existing homes to strong levels in the second and third quarters of 2009.

Employment in the Kitchener CMA for the first three quarters of 2009 declined by 1.4 per cent, or 3,600 jobs, compared to the same period in 2008. All of the jobs lost were full time. Unemployment increased across all age groups. The unemployment rate for youth jumped to 15 per cent. Those in the 15-24 age group typically rent. Consequently, many youth chose to remain at home or double up with other rental households, resulting in more vacant units.

In the Guelph CMA, employment decreased by 2,600 jobs, or 3.4 per cent. As in the Kitchener CMA, unemployment increased across all age groups. Some rental households doubled up or made alternative living arrangements. As a result, fewer rental units were occupied.

Funding of $9.2 million for 77 new affordable housing rental units for seniors, persons with disabilities, and low income households was announced today in Orillia.

Bruce Stanton, Member of Parliament for Simcoe North, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and the Honourable Aileen Carroll, Ontario Minister of Culture, Minister Responsible for Seniors and Member of Provincial Parliament for Barrie, on behalf of the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing; along with Cal Patterson, Warden of Simcoe County, and Ron Stevens, Mayor of the City of Orillia, made the announcement.

“The Government of Canada is helping make affordable housing available in Ontario and across Canada for those who need it most,” said MP Stanton. “Here in Orillia, this initiative will help many people in our community, while creating jobs and stimulating our economy. This investment is possible through Canada’s Economic Action Plan, our 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 add significant support to the McGuinty government’s Poverty Reduction Strategy,” said Minister Carroll. “We will continue to work with our municipal partners to ensure more units are built during the life of this program.”

“The County of Simcoe is committed to providing a wide range of affordable housing options for residents in our 16 member municipalities and the cities of Barrie and Orillia,” stated County Warden Cal Patterson. “These new affordable housing units will support seniors in Orillia, allowing many to remain in their home community as they age. This project is another outstanding example of the great things that happen when we work in partnership with other levels of government and with our community.”

“We are extremely pleased to be awarded another 77 affordable housing units through the federal and provincial governments’ funding opportunities,” added Mayor Stevens. “As of today, non-profit organizations and private developers in the City of Orillia have completed 92 affordable and accessible housing units. With this new 77-unit project at 85 Barrie Road, we will have added a total of 169 units for low income families, seniors and the disabled since 2006.”

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.

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 the funding for 77 new affordable rental units at 85 Barrie Road in Orillia. The project is sponsored by developer Moe Zadeh of Serenity Residentials Inc.

According to the results of the latest Rental Market Survey conducted by Canada Mortgage and Housing Corporation (CMHC), the rental stayed tight in the Saguenay CMA, as the rental housing vacancy rate reached 1.5 per cent in October 2009, compared to 1.6 per cent in October 2008. While demand for rental housing stayed strong, this year marked a break in a downward trend that had been prevailing since 2005, since this indicator remained relatively stable. The economic uncertainty surely had an impact on the formation of renter households and migration movements. However, given the small increase in supply, the net effect on the vacancy rate was almost nil.

Saguenay was not an exception in Quebec, with the vacancy rates remaining relatively stable in several other CMAs. In fact, only Sherbrooke and Trois-Rivières saw their markets ease, as their vacancy rates of 3.9 per cent and 2.7 per cent, respectively, were the highest in the province. In order, Montréal (with a vacancy rate of 2.5 per cent) and Gatineau (2.2 per cent) followed ahead Saguenay (1.5 per cent), while the Québec CMA (0.6 per cent) brought up the rear with the lowest rate in the province and one of lowest in the country. Across Canada, the vacancy rates were rather stable in more than one third of the CMAs, while they rose in almost all the other areas.

Economic and demographic conditions The employment level in the Saguenay CMA has remained steady since 2003, despite a small decrease in 2008 (-1.6 per cent). For the last quarter of 2008 and the first three of 2009, the average employment level reached 69,300 workers, compared to 68,800 for the same period a year earlier (+0.7 per cent). In addition, the dynamic labour market in the area has maintained the employment rate (the proportion of the population with jobs) around a record level of 55 per cent1. The job market is still holding up, which is maintaining demand on the rental market.

Not only did the dynamic labour market support the formation of renter households thanks to the income generated, but it also enhanced the appeal of the area. Net migration has improved in the Saguenay CMA, as the migration deficits have been getting smaller every year, decreasing from 1,341 people 2004/2005 to 852 people in 2007/2008, according to Statistics Canada estimates. Also, given that mobility is greater among young people (aged from 20 to 29 years) and that most of them are renters, the decreasing migration deficits have without a doubt been contributing to supporting demand for rental housing.

That being said, the uncertain economic conditions that prevailed at the end of 2008 and the beginning of 2009 likely had an impact on migration movements. Traditionally, the Québec CMA has been the main destination of emigrants from Saguenay2. The good performance of the Québec area job market during a difficult period evidently attracted more households seeking new employment opportunities. In these conditions, the growth in housing demand in the Saguenay area will have been less vigorous than in previous years.

The aging of the population is another factor that stimulates rental housing demand. Between 15 and 55 years, the older primary household maintainers get, the less likely they are to live in rental housing. From the age of 55 years, households increasingly choose to rent a dwelling. When they get older, the seniors’ housing market remains an option for some, but the traditional rental market may be an alternative for households who do not have the financial means to move to a retirement home. In addition, over the coming years, household formation will be concentrated among people aged 55 years or older.

New rental housing supply The additional supply of traditional rental housing was rather limited between the October 2008 and October 2009 surveys. In fact, only 50 new traditional rental housing units were completed during this time (this figure, however, excludes units that have been converted into rental dwellings). As well, 50 new duplex units were built between July 2008 and June 2009, potentially adding 25 more dwellings to the rental market (as one out of two units is usually occupied by the owner of these buildings). The stable vacancy rate was therefore also due to the limited supply of new rental units, in addition to the slower growth in demand.

Contrary to last year, when rental market conditions tightened in all sectors of the Saguenay CMA, this year, the results were mixed. The market tightened in Jonquière, on account of two factors: first, the average rent level was lower in this sector and, second, the estimated change in the average rent was less significant there than elsewhere. The Chicoutimi-Sud and La Baie rental markets, for their part, remained stable, while Chicoutimi-Nord was the only sector where conditions eased. More specifically, the Jonquière market, with a vacancy rate that fell from 2.4 per cent in October 2008 to 1.5 per cent in October 2009, has now become almost as tight as the Chicoutimi-Sud market. Still, this last market remained the tightest in the area, with a vacancy rate that reached 1.3 per cent in October 2009, versus 1.0 per cent in October 2008. In La Baie, the proportion of vacancy units remained relatively stable, reaching 2.2 per cent in the fall of 2009, compared to 2.1 per cent a year earlier. Lastly, the vacancy rate in the Chicoutimi- Nord sector rose to 2.1 per cent in October 2009 from 0.7 per cent in October 2008.

The estimated change in the average rent was 3.4 per cent between October 2008 and October 2009. The tighter rental market conditions are certainly not unrelated to this situation. However, the size of the changes varied with the sectors. The sector with the tightest market conditions and the strongest demand in the area, Chicoutimi-Sud, also posted the greatest estimated change in the average rent (+4.6 per cent). The Jonquière sector, for its part, showed the smallest change in the average rent (+1.7 per cent) and a tighter market. This less significant change possibly attracted more households to this sector. As for the other two sectors of the Saguenay CMA, the changes in the average rents were 3.2 per cent in La Baie and 4.4 per cent in Chicoutimi-Nord.

In 2009, the Saguenay CMA had the most affordable rental market among all the Canadian metropolitan areas targeted by the rental affordability indicator. With this indicator at 152, Saguenay came in just ahead of Sherbrooke (151). The more rapid growth in the median income than in the median rent helped make housing more affordable in the area.

The rental affordability indicator is a gauge of how affordable a rental market is for those households who rent within that market. The rental affordability indicator examines a three-year moving average of median income of renter households and compares it to the median rent for a two-bedroom apartment in the centre in which they live. More specifically, the level of income required for a household to rent a median priced two-bedroom apartment, using 30 per cent of its income, is calculated. The three-year moving average of median income of households in a centre is then divided by this required income. The resulting number is then multiplied by 100 to form the indicator. An indicator value of 100 indicates that 30 per cent of the median income of renter households is necessary to rent a two-bedroom apartment going at the median rental rate. A value above 100 indicates that less than 30 per cent of the median income is required to rent a two- bedroom apartment, conversely, a value below 100 indicates that more than 30 per cent of the median income is required to rent the same unit. In general, as the indicator increases, the market becomes more affordable; as the indicator declines, the market becomes less affordable.

The seasonally adjusted annual rate of housing starts reached 158,500 units in November. This is an increase from 157,400 units started in October, according to Canada Mortgage and Housing Corporation (CMHC).

“The improvement in housing starts continued in November,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite a small decline in November’s multiple home construction, overall starts numbers were up due to a solid increase in singles starts.” The November total is the highest of the year.

The seasonally adjusted annual rate of urban starts increased by 0.7 per cent to 141,100 units in November. Urban multiple starts decreased slightly from 72,500 units in October to 71,300 units in November. Single urban starts increased by 3.4 per cent to 69,800 units in November.

November’s seasonally adjusted annual rate of urban starts increased by 10 per cent in Quebec, by 8.2 per cent in the Prairies and by 6.2 per cent in British Columbia. The rate of urban starts decreased by 8.3 per cent in Ontario and by 9.8 per cent in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in November.

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.

After near record years in new home construction, 2009 residential new home construction will grow below demographic needs in Ottawa Census Metropolitan Area. Total housing starts will close this year at 5,125 units or 27 per cent lower than in 2008 and well below the ten year average for the region. Tight credit conditions for high density development will delay construction in the Capital, particularly for condo apartments. However, increasing strength is expected next year as construction responds to growing demand for housing. In 2010 foundations will rise, growing slightly above population needs with 5,900 new units. Spill-over demand coming from the existing home market combined with low levels of construction this year and declining new home inventories will set the foundations for a strong rebound in New Home construction in the coming year.

Although total starts are expected to soften in 2009, single-detached homes will be declining the least. Single- detached starts will remain at close to 40 per cent of total construction or 2,250 units. The lowest interest rate seen in almost 60 years coupled with more affordable dwellings in Ottawa’s outskirts will result in decreasing monthly mortgage payments.
Single-detached new construction will pick up slightly through 2010. The Monetary and Fiscal stimulus coming from Canada’s Economic Action Plan will further boost the purchase of big ticketed items in the Capital City. Ottawa’s home market continues to be strong, as single-detached starts remain a good barometer of the strength of the new residential construction market.

The average price for new single- detached homes in 2009 will post a similar level of growth to last year and will stand at around $418,400 for a 2.3 per cent increase. Although the underlying increase in price in 2010 will be flat, a greater proportion of more expensive homes will drive the average price higher by 5.7 per cent.

Semi-detached and townhomes will provide an alternative to the single- detached home dwellings when their price increases in 2010. As a result, expect semi-detached and townhomes sales to increase by 10 and 11 per cent next year respectively.

Canada Mortgage and Housing Corporation (CMHC) today announced the six winners of CMHC’s Housing Studies Achievement Award. Six prizes of $10,000 — three at a master’s level and three at a doctoral level — were presented by Mr. Douglas Stewart, CMHC’s Vice President, Policy and Planning, at an awards event held today in Ottawa.

“CMHC is proud to honour Canadians whose work is at the forefront of helping us foster a better future for quality, affordable housing in this country. I want to congratulate this year’s winners of the CMHC Housing Studies Achievement Award for their important contributions,” said Mr. Stewart.

The CMHC Housing Studies Achievement Award program, held every second year, was originally created to commemorate CMHC’s 60^th anniversary in 2006 and the first winners were announced in November 2007. The academic work of the 2009 award recipients contributes to housing research and policy development in Canada, whether in social, economic, design or technical aspects of housing. In addition to paying tribute to the work of the award winners, CMHC is also acknowledging the work of four “honourable mentions” singled out for recognition by the expert panel of jurors reviewing submissions. Attached is a backgrounder profiling the work of the 2009 CMHC Housing Studies Achievement Award winners and Honourable Mentions.

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 across the country. For more information, call 1-800-668-2642.

The Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), along with Jim Kenyon, Minister Responsible for the Yukon Housing Corporation, today launched the construction phase of two new housing projects for seniors in Faro and Teslin.

The $4.7 million federal contribution to these projects comes through Canada’s Economic Action Plan, the government’s plan to stimulate the economy and create jobs during the global recession. Recognizing the distinctive needs of the North, Canada’s Economic Action Plan provides $200 million, over two years, including $50 million for Yukon, to support the renovation and the construction of new social housing units. 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 Government of Canada is committed to providing Canadians a hand up to those who need it the most,” said Minister Finley. “Through this investment we are helping make an important difference in the lives of individuals and families in Faro and Teslin who are trying to build a better future for themselves.”

“With funding from Canada, Yukon government is launching several important housing projects in the territory,” said Minister Kenyon. “Access to affordable and accommodating housing gives seniors the option of staying in their community as they grow older. Faro and Teslin will benefit from retaining this important generation within their population.”

Canada’s Economic Action Plan (CEAP) will provide $2 million to construct a seniors’ residence in Faro, which has one of the highest ratio of seniors and near-seniors among Yukon’s municipalities. The residence will contain six 1-bedroom suites.

CEAP funding of $2.7 million was approved for seniors’ residence in Teslin. The residence will contain seven 1-bedroom suites and one 2-bedroom suite. Two of the seven units are for seniors with a disability.

Construction in both communities is underway and will continue throughout the winter, generating employment for trades. Completion is anticipated for the fall of 2010.

Both buildings are wood frame construction and feature SuperGreen energy efficiency standards and Accommodating Home standards for a barrier-free living environment.

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.

Resilient consumer spending, large capital projects
and improved employment will continue to support the St. John’s region housing market
throughout the remainder of 2009 and in 2010, according to Canada Mortgage and
Housing Corporation’s (CMHC’S) Housing Market Outlook – St. John’s report released
today.
Housing starts are expected to end 2009 at 1,675 units, with 1,800 starts forecast for
2010. The resale or MLS®1 market will post 3,450 sales by the end of this year and reach
the 3,575 level in 2010. The average MLS® house price is expected to end 2009 at
$215,500 compared to $187,571 in 2008 and increase to $225,500 in 2010.
“Despite the recent global economic uncertainty, strong fundamentals will continue to
support demand for housing throughout the remainder of 2009 and in 2010,” said Chris
Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Overall, the
positive outlook for the St. John’s area housing market will be reinforced by favourable
trends in demographic and economic fundamentals, as well as on-going economic
momentum fuelled by a lengthy list of major capital projects,” added Janes.
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.

Home sales will continue at a brisk pace through the remainder of this year and into 2010. More sales combined with fewer active listings will push the average MLS® home price higher in 2010.

Home starts will pick up over the next 15 months, but remain below levels recorded in recent years. The upturn in the resale market will contribute to an increase in home starts as builders see demand returning to the market. New and resale home inventories are being absorbed, providing an incentive to start new residential projects.

Steady population growth through migration, an improving job market and low mortgage rates will provide support for homeownership demand through 2010.

Housing market conditions in Greater Vancouver1 will favour home sellers into the first half of next year. The recovery of home sales that began during the spring and summer months will continue into 2010. Home sales ramped up during the past few months due to lower home prices and low mortgage rates. These two factorscombined with increasing real wages, have meant improved affordability for home buyers. While home prices are rising, continued low mortgage rates into mid 2010 will keep home buyers active. Home sales in the first few months of 2010 may be below average, as transportation route changes associated with the Olympic Games hamper mobility.

The number of active resale listings will be near the five-year average level next year. After peaking in fall 2008, active listings have trended lower. While the flow of new listings entering the market has been increasing, high sales levels have kept the total stock of active listings dwindling in recent months. The recent upturn in home prices may draw more sellers to the marketincreasing the supply of homes for sale. Look for more balanced market conditions to prevail in the second half of 2010.
Home prices in most Vancouver

municipalities will continue to trend up in 2010, but at a modest pace of two to four per cent. Home prices hit their lowest point in March of 2009, having fallen 17 per cent from their peak level. In just six months, thaverage price in Greater Vancouver saapproximately two per cent below thpeak value. However, the recovery in home prices has been uneven across the region. While prices in the City of Vancouver have already surpassed the previous peak, prices in other centres remain well below peak levels(see figure 2). These centres with prices still below peak, will see prices trending up over the next 15 months, as buyers take advantage of lower prices and favourable mortgage interest rates.