CMHC Canadian Housing Market Q1

February 19, 2009

Housing starts in Canada major cities have trended down.

In BC, the MLS average price is predicted to drop 10% in 2009.

Markets which are energy related (oil, uranium) have experienced weakening in labour demand and real estate market, particularly St. Johns, Calgary and Edmonton.

Winnipeg and Sudbury are relative stable and strong, in terms of pricing and rental demand.

Regina and Sasketoon, though home price have escalated in the past 3-4 years, the supporting economy is not as cylicable compared to only oil based cities in Alberta.  Demand for potash remains healthy and local real estate expects to outperform in Canada.

For Full Report, Download Free Here CMHC 2009 Q1 Report.


GDP Canada and US toward Worst Slowdown since 1991

February 15, 2009

New gross domestic product reports show Canada and the U.S. are moving towards the worst recession since at least 1991. In a report released Friday, Statistics Canada said gross domestic product fell 0.7 per cent in November as major sectors across the board reduced production.

The reduction in output of manufacturing, wholesale trade, construction and real-estate agents and brokers were the main factors in the drop. BNN’s Michael Kane said the figures are slightly worse than the 0.5 per cent decline analysts were predicting.

He said the economy will likely contract by about 3 per cent annualized in Q4, which he called “the sharpest decline since the 1991 recession.” Meanwhile, in the U.S., the economy shrank by 3.8 per cent in the fourth quarter of 2008.

Kane said that number was stronger than the 5.4 per cent contraction that experts had predicted. “Although it’s still causing pain, the situation in the United States is a more steady decline rather than a plunge,” Kane said Friday.

However, Scotia Capital economist Derek Holt cautioned that the report included US$6.2 billion in inventory buildup (unsold production). “The (inventory) gain is most assuredly undesired and waiting to be burned off in future quarters. Rising inventories will amplify the production cutbacks going into 2009,” Holt said.
Read the rest of this entry »

2009 Federal Budget: Housing Sector

February 6, 2009

Support for Home Ownership and the Housing Sector

  • Implementing a temporary Home Renovation Tax Credit that will provide up to $1,350 in tax relief, reduce the cost of renovations for an estimated 4.6 million Canadian families, and provide needed stimulus to the economy.
  • Providing an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.
  • Providing first-time home buyers with additional access to their Registered Retirement Savings Plan savings to purchase or build a home by increasing the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000.
  • Assisting first-time home buyers by providing up to $750 in tax relief to help with the purchase of a first home.

Investments in Housing for Canadians

Social housing provides many Canadians with quality housing at affordable rates. Budget 2009 will invest in social housing by:

  • Providing a one-time federal investment of $1 billion over two years for renovations and energy retrofits for up to 200,000 social housing units on a 50–50 cost-shared basis with provinces.
  • Investing $400 million over two years for the construction of social housing units for low-income seniors.
  • Investing $75 million over two years for the construction of social housing units for persons with disabilities.
  • Dedicating $400 million over two years to new social housing projects and to remediation of existing social housing stock on First Nations reserves.
  • Supporting social housing in the North with an additional $200 million over two years

Source: Federal Budget 2009