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Vancouver and Abbotsford CMAs

Comments: 0January 4th, 2010 by admin

Posted by Moshe Alexander

Renters had an easier time finding rental accommodation in Vancouver this fall, compared to last year. Higher rental apartment vacancy rates have meant that renters have more choice. Although higher than last year, Vancouver’s vacancy rate is still below the national average and among the lowest in the country.

A slowdown in employment sent Vancouver’s rental apartment vacancy rate higher in 2009. The vacancy rate increased to 2.1 per cent, after sitting below one per cent for three consecutive years. Unemployment in the Vancouver Census Metropolitan Area (CMA) for the first ten months of 2009 increased to seven per cent from 4.3 per cent for the same period last year. Although employment has been gradually improving since the spring of this year, it has only been in the last couple months that full-time employment has grown.

A shift to homeownership also contributed to higher rental vacancy rates in 2009. A combination of low mortgage rates and home prices off their peak value has meant that monthly mortgage payments are lower. As of September 2009, the average monthly mortgage payment for an apartment condominium was approximately ten per cent less than it was one year ago3. Although the average mortgage payment is still higher than the average monthly rental payment, some renters have chosen to take this opportunity to enter homeownership.
Virtually all communities in the Metro Vancouver area saw an increase in vacancies in 2009. The only exception to this was the University Endowment Lands (UEL). The vacancy rate in the UEL, along with several areas of Vancouver City and North Vancouver, remained tight, below one per cent in October 2009.Vancouver City, with its educational infrastructure and job opportunities in the business centre, and the lifestyle communities of West Vancouver and White Rock recorded vacancy rates just over one per cent.Vacancies increased in all other municipalities, with suburban communities north of the Fraser River near three per cent, and communities south of the Fraser, in the 4-6 per cent range.

The rental availability rate4 for private rental apartments moved higher in 2009. The availability rate increased to 2.8 per cent in October 2009, from 1.1 per cent a year earlier. The vacancy rate for investor-owned rental condominiums increased in 2009, but to a lesser extent than that for purpose-built rental units. The rental condominium vacancy rate moved up to 1.7 per cent from 0.6 per cent last fall. The stock of rental condominiums is generally newer and features more amenities than their purpose-built rental counterparts. These benefits shore up demand for rental condominiums.

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Posted in CMHC, Canada, affordable housing

Local Families the Big Winners in CMHC’s Charity Gingerbread House Competition for Habitat for Humanity, NCR

Comments: 0December 11th, 2009 by admin

Posted by Moishe Alexander

The competition was spirited, friendly and all for a good cause today as teams from across the region squared off at the Rideau Centre in Canada Mortgage and Housing Corporation’s (CMHC) eighth annual gingerbread house build in support of Habitat for Humanity National Capital Region (NCR).

Several prizes were awarded, but the main winners will be local families whose dreams of homeownership will move closer to reality because of the event.

“Habitat for Humanity is a great organization that does amazing work here in Ottawa, across Canada and around the world,” said Ed Komarnicki, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour. “I am delighted that CMHC is working with the local organization again this year to help raise money to build homes for families in the National Capital Region.”

In the competition’s professional category, local restaurants, bakeries and culinary schools competed to design and decorate gingerbread houses that evoke the holiday spirit. The top prize of $1,000 went to a stunning creation made by Fairmont Château Laurier. The second place prize of $500 was awarded to Cité collégiale, and third place went to Decadent Cakes with a $250 prize.

New to this year’s competition was an amateur category, which saw teams of families, friends and other ‘rookies’ compete to come up with the most tantalizing creation. The first prize of $500 went to Intempo Design Studio; second prize ($250) was awarded to Design First Interiors; and third prize ($100) went to Erskine Dredge & Associates Architects Inc.

A highlight of the annual event is the media competition, in which local media personalities compete against each other — and against the clock — in a live gingerbread house build. This year, teams from Virgin Radio, the Ottawa Citizen, the Ottawa Sun, 24 Hours Ottawa, A-Channel and CJOH CTV – Ottawa participated, and were presented with a certificate of appreciation by MP Komarnicki.

“CMHC has a special relationship with Habitat for Humanity, and we are pleased to be supporting them with today’s event,” said Karen Kinsley, President and CEO of CMHC. “This is a time of year when Canadians are looking to share their good fortune with others. Proceeds from CMHC’s gingerbread house competition will enable Habitat for Humanity to continue building safe and affordable homes for low-income working families in the National Capital Region.”

“Habitat for Humanity NCR is proud to partner with CMHC again this year for another excellent community event,” said Donna Hicks, Habitat NCR’s CEO. “Everyone is a winner in this event, especially the local families who will be helped by your generosity.”

The gingerbread homes will be on display at the Rideau Centre in the West Bay Bridge (near Grand & Toy) all weekend. Visitors are invited to tour the gingerbread village and bid on their favourite homes in a silent auction. All proceeds from the silent auction will go to support the home building programs of Habitat for Humanity NCR.

Habitat for Humanity NCR’s mission is to mobilize volunteers and community partners in building affordable housing and promoting home ownership as a means to breaking the cycle of poverty. Habitat has built 35 homes in the National Capital Region since 1993.

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Posted in CMHC, Canada, Ontario

HOUSING MARKET OUTLOOK Greater Sudbury

Comments: 0November 9th, 2009 by admin

Posted by Moishe Alexander

The slackness in the resale market coupled with the slowing economy will directly impact the new home market. Single-detached starts will fall to 190 units in 2009 and 180 in 2010, as the market comes more into line with long-term demographic requirements. CMHC expects 210 row, condominium and apartment starts in 2009 and another 160 in 2010.

After rising 4.3 per cent and 5.5 per cent respectively in 2007 and 2008, the New Home Price Index for Sudbury-Thunder Bay will rise in 2009 and 2010 but only modestly given the slowdown in demand.

Developers have plans for condominium development in 2010. Pricing will be very important as this product is primarily targeted at empty nesters who do not typically want to pay more for a condo that what they obtain from the sale of a homeownership unit.

As is well known, the vacancy rate has fallen from a peak of 11.1 per cent in 1999. A tight market partially brought on by a lack of new rental construction and demand pressure has finally resulted in some development of rental housing in Greater Sudbury. Vacancy rates rose slightly in April and will also increase this October before falling again to 1.3 per cent in 2010 as the economy begins improving. Strong enrolment figures at the three Sudbury-based post-secondary institutions will contribute to the tight market conditions. Rents should continue to escalate in 2009 and 2010 given continued strong demand for rental accommodation.

After plateauing in 2006-2007, Sudbury sales fell 13 per cent in 2008 and have fallen a further 26 per cent to the end of September. Sales will certainly continue this downward trend in 2009. Given the buyer’s market conditions, CMHC estimates a 27 per cent drop in existing home transactions when the year is complete. Sales will drop a further six per cent in 2010 as the market moves towards a balanced position.

The sale to new listings ratio, an indicator of the existing home market behaviour, is improving. After growing in the third quarter, Sudbury’s market will keep an upward trend, increasing its temperature. CMHC expects this ratio to end the year approaching 50 per cent, indicating that prices will adjust all the way into next year.

According to local sources, demand is greatest in the price ranges under 200,000 while the upper end of the market (>$400.000) has not been greatly affected. Prices have been falling since mid-year 2008 after rising to unsustainably high levels over the prior four years. The price decrease will continue into 2010 but will be tempered by falling listings. Watch for average prices to fall 5.5 per cent in 2009 and level off in 2010.

Given the adjustment in home prices, there has been improvement in required income to purchase a home. Unfortunately, with the slowing economy, the adjustment to incomes has been stronger. As a result the net impact on affordability will decrease somewhat in 2010 after improving in 2009. Nonetheless, there are buyers in the market searching for lower priced homes.

Greater Sudbury has experienced a strike at Vale Inco, one of the biggest mining companies in the community. Consequently employment will decline 1.2 per cent in 2009 and recover only slightly, 0.5 per cent in 2010. The combination of job loss and labour force growth have caused the unemployment rate to head north, and will approach on average nine per cent this year and next.

After an increase of nearly nine per cent in 2008, average weekly earnings will drop this year declining three per cent and fall a more modest 0.5 per cent in 2010. Removing a relatively high proportion of mining and mining- related incomes from the mix would have had a downward impact on average weekly earnings over the course of this year.

In the short term local economic uncertainty will impact housing demand. However, the current commodity price rebound will form a solid long term foundation for growth in the broader Sudbury economy. Despite the current weakness in the Sudbury economy, some economic development plans are still moving ahead.

Migration has been positive of late, while natural increase is trending down. In-migration will trend downward in 2009 and 2010 prior to recovery in 2011. Mining workers affected by work stoppages may contemplate relocating if the national economy begins to improve, generating opportunities elsewhere.

The Bank of Canada cut the Target for the Overnight Rate in the early months of 2009. The rate was 1.50 per cent at the start of 2009 and has since fallen to 0.25 per cent. The Bank has committed to keeping this rate at 0.25 per cent through the middle of 2010 unless inflationary pressures warrant an increase.

Mortgage rates have fallen over the course of 2009, but are now expected to remain relatively stable for the rest of the year. Posted mortgage rates will gradually increase through 2010, but will do so at a slow pace. For 2010, the one-year posted mortgage rate will be in the 3.50-4.25 per cent range, while three and five-year posted mortgage rates are forecast to be in the 4.50-6.00 per cent range.

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Posted in CMHC, Canada, New Home Starts, Sudbury

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