Posts Tagged ‘Mortgage’

Posted by Moshe Alexander

The rental market eased in the Trois- Rivières CMA this year. According to the results of the Rental Market Survey conducted in October by Canada Mortgage and Housing Corporation (CMHC), the proportion of unoccupied units reached 2.7 per cent, compared to 1.7 per cent in the fall of 2008. In so doing, the vacancy rate surpassed the 2-per-cent mark for the first time since 2002. This increase, the third in as many years and the largest, reflects a certain easing of the market. In fact, since 2003, rental market conditions had been particularly tight in the Trois- Rivières area, with the proportion of vacant units hovering around 1.5 per cent. It should be noted however average for the last 20 years (5 per cent). In the fall of 2009, 435 units were vacant (compared to 273 in October 2008) out of a total stock of 16,276 apartments contained in privately initiated buildings with three or more housing units. Many new units and a

The low vacancy rates registered in the area for the past several years greatly stimulated rental housing construction. Until now, this additional supply had been just counterbalanced by the strong demand, which was attributable to the dynamic migration. In 2009, however, rental housing construction maintained the same pace, but demand declined slightly. The weaker job market in the Trois- Rivières area therefore removed the upward pressure on rental housing demand. For one thing, the economic uncertainty that has been looming over Trois-Rivières for several quarters has forced some workers to leave this area for another. At the same time, this economic environment has made the area less attractive in the eyes of job seekers from other areas. Consequently, the supply of housing units exceeded demand, which pushed up the vacancy rate. In addition, financing conditions, which have rarely been so favourable, prompted a few renter households to access homeownership. Given the low mortgage rates, some may even have moved up their decision to buy, which, in turn, vacated a few rental dwellings.

In October 2009, stable rental market conditions were noted in four of the six CMAs in the province, as the Québec, Gatineau, Montréal and Saguenay areas did not register any significant change in their vacancy rates compared to October 2008. This past October, the Sherbrooke CMA had the highest vacancy rate in the province (3.9 per cent), followed by Trois-Rivières (2.7 per cent), Montréal (2.5 per cent), Gatineau (2.2 per cent), Saguenay (1.5 per cent) and Québec (0.6 per cent).

While the vacancy rates went up in all sectors of the CMA, Downtown and Bécancour stood out. In fact, these two zones, which had the highest vacancy rates in the CMA, were responsible for the increase in the overall vacancy rate. In October 2009, the proportions of unoccupied units reached 5.0 per cent in the Downtown zone and 9.1 per cent in Bécancour. When the market eases, the Downtown zone is quite often the first to see its vacancy rate rise. This is due to the fact that its housing stock is older. It has been noted that, as units are vacated in other sectors of the CMA, tenants leave their Downtown dwellings for these units, which are often newer and more modern. In Bécancour, the market seems to have been experiencing difficulties since the closing of a plant in this zone. However, the upcoming commissioning of the Twin Rivers Technologies oilseed crushing plant and the construction of a complex for the production of polycrystalline silicon for the solar panel industry in the industrial and harbour park should give a boost to this zone and put upward pressure on housing demand there.

Elsewhere in the CMA, the vacancy rates remained relatively low. The proportions of unoccupied units reached 2.5 per cent in Cap-de-la- Madeleine and Saint-Louis-de-France and 2.1 per cent in the Université du Québec à Trois-Rivières sector, where demand for rental housing stays relatively constant in any given year, thanks to the presence of the university and the Cegep. Lastly, the vacancy rates attained 2.0 per cent in the North sector and 1.6 per cent in Trois-Rivières-Ouest.

Posted by Moishe Alexander

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.

Posted by Moishe Alexander

Innovative approaches developed by the private sector, not-for-profit sector and all levels of government are increasingly driving the production of affordable housing, particularly for low-income households, reports the 2009 Canadian Housing Observer, released today by Canada Mortgage and Housing Corporation (CMHC).

“The 2009 Canadian Housing Observer is unique in providing a comprehensive annual examination of the key factors influencing the development of housing, a vital sector for Canada,” said Karen Kinsley, President of CMHC.

The 2009 Observer, CMHC’s flagship publication, details the private sector’s innovations in producing affordable housing, including providing direct support to tenants or homeowners through interest-free loans and measures to reduce housing costs through creative approaches to design, construction and renovation.

For their part, not-for-profit organizations are finding ways to provide affordable housing without on-going government support. For example, the Habitat for Humanity model is based on the concept of “partnership housing” where the potential homeowners contribute sweat equity and work alongside community volunteers and businesses to build homes.

Some municipal governments are also adopting new housing policies, including housing trust funds, donating land for affordable housing and reducing or waiving municipal fees.

Underpinning these efforts is support from federal and provincial/territorial governments, through flexible agreements that allow for innovative ideas, as well as financial and in-kind contributions.

Other key findings in this year’s Observer include:

* Nationally, the incidence of core housing need decreased from 13.7 per cent in 2001 to 12.7 per cent in 2006, with most regions in the country following the national trend;
* The effects of the aging of Canada’s population over the next three decades and the important implications this will have on homebuilders, mortgage lenders and policy makers;
* The effect of immigration on population and household growth will become increasingly important;
* Housing starts were above the 200,000 unit level for the seventh consecutive year and housing-related spending contributed just over $300 billion to the Canadian economy in 2008;
* A water-sensitive approach to urban design is an important part of efforts to encourage the development of healthy, energy-efficient sustainable homes and communities.

In addition to the Observer, CMHC offers detailed online statistical housing information and analysis. This includes CMHC’s Housing in Canada Online interactive tool.