Senator Daniel Lang (Yukon), on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), along with the Honourable Jim Kenyon, Minister responsible for Yukon Housing Corporation, announced today the construction of new affordable townhouses in the Ingram subdivision of Whitehorse, in addition to renovation funding for existing social housing.

The $5.4 million federal contribution to the 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 construction of new social housing units. Additionally, CEAP provides $850 million to provinces and territories for the renovation and retrofit of existing social housing. 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.

“Our Government is taking action to help ensure our economic recovery and create the conditions for long-term growth,” said Senator Lang. “Year 2 of Canada’s Economic Action Plan will continue to create jobs and stimulate the economy here in Yukon and in all corners of the country, while also supporting Canadian workers and families.”

“Yukon Housing Corporation is pleased about this new housing project,” said Minister Kenyon. “Six Yukon families will find affordable and comfortable homes here, and the project is providing beneficial SuperGreen training to the construction industry. Investing in our existing social housing stock helps extend the life of the buildings and the retrofits will result in better, more comfortable housing for our clients.”

With some $2.1 million in federal stimulus funding, the new construction project in the Ingram subdivision of Whitehorse will be a 6-unit townhouse complex with two 4-bedroom units and four 3-bedroom housing units for eligible social housing clients. These barrier-free units are being built to meet Yukon Housing Corporation’s Super GreenHome standards. The Kwanlin Dün First Nation Development Corporation 42135 is constructing the project for Yukon Housing Corporation. Completion is anticipated for Fall 2010.

Stimulus funding has also contributed to various retrofits throughout Yukon communities. The federal government is contributing $3.3 million and the Yukon government is contributing $430,000 to these projects. In addition to adding more insulation to some units, Yukon Housing Corporation has also replaced 16 older furnaces with more efficient models, made upgrades to three boiler systems and installed 12 Heat Recovery Ventilation (HRV) systems. Forty-two steel fuel tanks were replaced with dual containment fiberglass tanks. Other retrofits include insulation and lighting upgrades, and attic air sealing. Two Yukon Housing Corporation apartment buildings in Whitehorse will be receiving major exterior retrofits, including superinsulating the building envelope.

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

Funding of $420,000 for six new affordable housing rental units for seniors living on low income was announced today in Glencoe.

Bev Shipley, Member of Parliament for Lambton – Kent – Middlesex, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and Maria Van Bommel, Parliamentary Assistant to the Minister of Children and Youth Services and Member of Provincial Parliament for Lambton – Kent – Middlesex, on behalf of the Honourable Jim Watson, Ontario’s Minister of Municipal Affairs and Housing; along with Doug Reycraft, Mayor of the Municipality of Southwest Middlesex made the announcement.

“The Government of Canada is helping Canadians during these tough economic times and giving hope to seniors who need quality, affordable housing that meets their needs,” said MP Shipley. “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 add significant support to the McGuinty government’s Poverty Reduction Strategy,” said MPP Van Bommel. “We will continue to work with our municipal partners to ensure more units are built during the life of this program.”

“The six new affordable housing units in this eight-unit building are a welcome addition to our rental stock in Southwest Middlesex,” said Mayor Reycraft. “I have heard from several seniors who are eagerly awaiting the completion of the apartment building. The investment by the federal and provincial governments, and by Sundip and Melissa Bajaj, in these affordable units is great news.”

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 funding for six new affordable rental units at 173 Main Street in Glencoe. The project is sponsored by Sundip and Melissa Bajaj.

The Government of Canada announced today that the County of Oxford has been approved for seven infrastructure loans as part of Canada’s Economic Action Plan.

The announcement was made by Dave Mackenzie, Member of Parliament for Oxford, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

The County of Oxford has been approved for more than $12 million in low-cost loans from CMHC’s Municipal Infrastructure Lending Program (MILP):

• The Town of Ingersoll will see $1.7 million put to work for the reconstruction of Clark Road East and Wonham Streets,
• The Township of East Zorra – Tavistock will see an investment of $3 million for wastewater servicing in Innerkip,
• The Township of Blandford – Blenheim will benefit from $3.17 million for upgrades to the Wastewater Treatment Plant/Sewage Pump station in Platsville,
• The City of Woodstock is investing $200,000 to upgrade its Thames Valley Sewage Pump Station, and
• The Township of Zorra is investing $4.3 million for the Embro Wastewater Servicing Program.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Mackenzie. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for Oxford, but also for Ontario.”

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.

“Oxford County is very happy to partner with all levels of government,” said Oxford County Warden Paul Holbrough. “Residents in Oxford will benefit for many years as a result of the funding being made available for these critical infrastructure projects”.

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.

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.

Net migration is forecast to be negative in 2009 in the Windsor CMA. More people have moved away from the area each year since 2004 than have relocated to Windsor. This is expected to continue in 2010 with a net loss of nearly 1,400 people. The first impact can be seen in the rental market as renters are more mobile than owners.

In the rental market the average apartment vacancy rate in Windsor was 14.8 per cent in October 2008 and is expected to remain high in 2009. Contributing to the high vacancy rate are several factors such as higher unemployment among youth, out-migration in search of employment, and competition from homeownership. The average two bedroom apartment rent is forecast to remain flat in October 2009, as landlords refrain from raising rents in an effort to retain existing tenants.

The Windsor-Essex area is marketing the region abroad to boomers and retirees as an exceptional place to live. Visitors and residents extol the many recreational opportunities, affordable housing and temperate climate of the area in the hopes of attracting new residents.

Employment is a key factor supporting housing demand. Windsor’s employment levels have not dropped as sharply as anticipated. The area may be able to get through 2009 with less than a five per cent decline in jobs. However, combined with losses over the past couple of years the workforce has shrunk by almost eight per cent since 2006. Continuing economic weakness in the U.S. and the appreciating value of Canadian dollar are ongoing challenges for the manufacturing and tourism sectors. In turn this has had a detrimental affect on local consumer spending.

The economy has been slow to diversify, however some inroads are appearing. Interest in alternative green energy such as wind and solar are providing new manufacturin opportunities.Non-residential construction employment will grow in 2010 due to investment in major capital projects in the area.

Economic growth in New Brunswick was limited in 2009 as exporters in the province continued to face a decline in global demand for commodities. Fewer exports have also had a negative impact on the manufacturing and transportation sectors in the province. No significant increase in economic growth is expected until a global recovery begins to take hold in 2010.

Despite economic uncertainty, the long term outlook for New Brunswick contains positive elements which will serve to support housing demand. For example, the last provincial budget for 2009-2010 focused on job creation, with $1.2 billion set aside for infrastructure programs and support to New Brunswick businesses. Notwithstanding, the return of sustained economic expansion will rely heavily on capital investment.

Employment in New Brunswick’s three large urban centres has been stable in 2009. As a result, positive net-migration continued in both Moncton and Fredericton, as each centre benefited from solid service, retail and construction sectors. Conversely, in-migration in Saint John, which has been muted in recent years, is not likely to change during the remainder of this year and in 2010. Reduced housing demand in all three centres has led to a lower level of activity in both the new home and resale markets. Employment levels are expected to remain flat in 2010; however, this should not significantly affect the housing market.

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.

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.

Welcome to the HomeZilla Real Estate Trends. As in previous months, we list the most searched provinces, top 10 most searched cities and top 10 most searched amenities.

HomeZilla’s Most Searched Provinces

1			Ontario
2			British Columbia
3	(+1)		Nova Scotia
4	(-1)		Alberta
5			Manitoba
6	(+1)		New Brunswick
7	(-1)		Quebec
8	(+2)		Newfoundland
9	(-1)		Saskatchewan
10	(-1)		Prince Edward Island

HomeZilla’s Most Searched Cities

1			Toronto
2	(+1)		Ottawa
3	(+1)		Mississauga
4	(-2)		Vancouver
5	(-)		Quesnel
6	(-)		Oshawa
7	(-2)		Calgary
8			Brampton
9	(-)		Winnipeg
10	(-)		Whitby

HomeZilla’s Most Searched Amenities

1			Schools
2	(-)		elementary schools
3	(-1)		grocery stores
4	(+3)		child care services
5	(-1)		coffee shops
6	(-)		high schools
7	(+2)		banks
8	(-3)		pubs
9	(-6)		parks
10	(-)		jr high schools

We hope you enjoy these March 2009 real estate trends and we look forward to your feedback!

Interesting report added by Moishe Alexander, CFC CEO

Housing Steady Through to 2009

Hamilton, Ontario - Credit D. Searles, Flickr

The Hamilton Census Metropolitan Area’s (hereafter referred to as Hamilton) housing market has performed relatively well, in both the resale and new home markets. A growing population thanks in part to a resurgence in net migration last year, and a growing job sector in emerging industries will keep the housing market healthy. However, the resale market is expected to trend towards the lower end of a sellers’ market this year as listings move higher and sales moderate in pace. As a result of more choice in the resale market, fewer new home starts are expected in Hamilton next year. The average price of both resale and new homes are expected to continue rising, though at a modest rate.

New Home Market – Fewer Starts in 2009

New home starts this year will climb nine per cent to 3,285 starts, due to increases in semi-detached, townhouse and apartment starts. Single-detached starts are expected to remain at the same level as last year. New home starts will decline next year to 3,045 starts, slightly above last year’s total. The change in the selling price of new homes as measured by the New Housing Price Index (NHPI) has grown by more than four percent annually in Hamilton since 2002. The rising cost of development is one factor that has forced prices up. Consequently, builders are adjusting by constructing less expensive homes to keep home prices affordable for homebuyers. This will include building smaller single-detached homes and more multiple-family home types – semi-detached homes, townhouses and apartments. This inclination toward more construction of higher density home types is supported by recent demographic trends from the latest census, which revealed a sharp shift in housing type preference by all age groups, away from single-detached houses to other dwelling types. This trend is expected to continue, particularly since empty nesters, who are interested in downsizing, will increase from just under a quarter of all households currently to over a third in the next 25 years. Starts are still ahead of household formation, which indicates some slowdown in starts is likely over the next five years. By the end of this period, the echo-boomers (children of the baby-boomers) will begin to buy their first homes, leading to a partial rebound in starts. In Brantford, total home starts will reach 600 this year, an increase of two per cent from last year. However, a drop in single-detached starts in the third quarter has contributed to fewer starts for the year thus far. Over the same period, semi-detached, townhouse, and apartment starts jumped 61 per cent. The average price of a new single-detached home is expected to reach $252,000 in Brantford next year.

Resale Home Market -Sales to Ease From Record Levels

Despite moderating economic conditions in Hamilton and in the broader Canadian economy this year, the resale market in Hamilton has performed relatively well. Just under 13,000 sales are expected in Hamilton this year – a decrease of 7.7% – and the average price of an existing home is forecast to reach $280,000 – a four per cent increase from last year. It is important to note that 2007 was a peak year in the Hamilton resale market and thus most other years pale in comparison. In 2009, the resale market will become more balanced. Listings will fall slightly to 19,200 and sales will drop to 12,000. More choice in the resale market will translate into more moderate price growth for next year at just under three percent. Price growth that falls in line with the level of targeted inflation will encourage buyers to continue purchasing homes in the resale market next year. More moderate price growth expected next year will help support housing demand going forward. Still, there will be some pull back from first time buyers coming from the rental market who generally have lower household incomes than owners. Some of these would-be buyers may choose to remain in the rental market. The vacancy rate is forecast to be 3.6 per cent in 2009. In Brantford, 2,000 sales of existing homes are expected in 2009 and the average price will rise 2.8 per cent to reach $224,000. Less expensive homes in Brantford as compared to the surrounding area will drive some buyers to this market, though moderate employment growth will put downward pressure on sales.

Local Economy -Local Job Market Diversifying

Manufacturing employment in Hamilton has eased off its peak in 2004, when jobs in this sector represented 21 per cent of all jobs. Today, manufacturing employment represents just 14 per cent of all jobs in Hamilton. Despite the drag from manufacturing employment, total employment in Hamilton is at a record level. Also, full-time jobs – a key driver of ownership housing – remain at a steady high. This means that employment in sectors other than manufacturing continues to keep the total unemployment rate in Hamilton under 6.5 percent. In addition, targeted growth in employment sectors such as health sciences, biotechnology and advanced manufacturing, coupled with public investment in local research institutes has contributed to the diversification of Hamilton’s job market. Innovation and developing new industries will help sustain economic growth in Hamilton, and allow it to continue competing in the global economy. Nevertheless, total employment is expected to increase by less than one per cent per year in 2008 and in 2009 in Hamilton.

Long Term Economic – Growth in Brantford

In Brantford, employment is also growing, especially in full-time jobs. Brantford continues to attract business investment through incentive programs and thus is able to retain and create more jobs. Also, Brantford’s post-secondary institutions are expanding and thus are expected to attract more people to the area. Long-term growth is expected in Brantford given the provincial plans to intensify certain areas of Southern Ontario. Although the closure of the Daimler AG plant in St. Thomas is expected next year, overall employment is expected to grow modestly in Branford at approximately one per cent per year in each of 2008 and 2009.

Mortgage Rates

Mortgage rates are expected to be relatively stable throughout the last quarter of this year, remaining within 25-50 basis points of their current levels. Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases. Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009. For the last quarter of 2008 and in 2009, the one year posted mortgage rate will be in the 6.00-6.75 per cent range, while three and five year posted mortgage rates are forecast to be in the 6.50-7.25 per cent range.

You can find the entire report in PDF format through the following link:

http://www.cmhc-schl.gc.ca/odpub/esub/64303/64303_2008_B02.pdf