WINDSOR, ON, August 19, 2009 — Habitat for Humanity Windsor – Essex Inc. (HFHWE), Canada Mortgage and Housing Corporation (CMHC) and Can-Am Urban Native Non-Profit Homes (Can-Am) joined together to break ground on a new home for a First Nations family today.

Today’s groundbreaking marks an important milestone for Habitat for Humanity Windsor – Essex. They are also celebrating 50 builds in the City of Windsor. Since 1994, HFH Windsor – Essex been coordinating volunteers and collecting building materials and funding to help families secure a home.

This build is the first Ontario partnership between an urban First Nation organization and Habitat to build a home specifically for a First Nations family under Habitat’s Aboriginal Housing Program that aims to help more Aboriginal families access homeownership. The Government of Canada, through CMHC, is a gold sponsor for Habitat for Humanity Canada and the lead national sponsor for Habitat for Humanity Aboriginal Housing Program.

“I would like to congratulate Habitat Windsor – Essex on this important milestone event,” said Jeff Watson, Member of Parliament for Essex, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for CMHC. “Affordable housing is an important part of our government’s commitment to build stronger, healthier and more sustainable communities. We are dedicated to working in partnership with organizations like Habitat to address housing needs in Ontario and across the country.”

All Habitat homes are built by volunteers and the successful applicant families under the supervision of professionals. This is a cost-effective way of producing a home while giving families the opportunity to participate in the construction of their own residence.

“It’s my great honour to work for this organization and its committed donors, partners, volunteers and staff on this landmark build,” says Laura Gould, Executive Director of HFHWE. “Seeing the difference these homes have made in the lives of children, is heart warming and visible proof that Habitat is indeed building hope.

“I’m elated to see that, in their 15^th year, Habitat Windsor – Essex is completing their 50^th partner home and building their first home for First Nations family,” says long-time supporter and past HFHWE President, Rick Farrow. “I applaud their continued efforts to address the ongoing housing concerns in our community.”

Also partnering on this project is Can-Am Urban Native Non-Profit Homes, which was started in 1988 by a group of volunteers who recognized an urgent need for affordable housing for First Nations people in the Windsor area. Currently, Can-Am has 81 single family homes, the Nash Kanonhsa Home and the Biimskiinodin Transitional House.

“As a Habitat supporter and build participant in previous years, we’re delighted to have assisted with the recruitment of a local First Nations family. The family is so grateful for this opportunity to reach their dream of home ownership,” says Margaret Messenger, Executive Director of Can-Am.

Overall, Can-Am strives to improve the socioeconomic well-being of First Nations residing in Windsor through various housing initiatives and provides leadership and involvement on various activities and projects.

As Canada’s national housing agency, CMHC has over 60 years experience helping Canadians access a variety of quality, environmentally sustainable and affordable homes. For more than seven years, CMHC Ontario Region has supported Habitat through staff support and charitable activities. CMHC has supported this build with a $10,000 Seed funding commitment, as well as a $10,000 donation from staff charitable activities and its contributions through Habitat’s Aboriginal Housing Program.

Habitat for Humanity Windsor – Essex is a non-profit, faith-based organization working for a world where everyone has a safe and decent place to live. Their 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.

Tight conditions in the mortgage world should normally mean lower rates, since banks would have to lower rates in order to attract customers with good credit ratings. But it sems that banks are actually raising rates, in the hope that will improve their revenue.

Under other circumstances, this would seem like a bad choice since the usual route to increased earnings is to lower prices. This shortsightedness is not limited to the home loan industry; credit card companies are doubling and even tripling their rates in reacton to defaults on the part of customers in this depressed economic environment.

It used to be that when the economy slowed down, banks would lower their interest rates and this would give an incentive to borrowers. But with the lending industry in turmoil, it seems like none of the old rules count.

So what is the solution for a potential homebuyer with the right credit score to borrow? Wait for this phase to pass and for rates to come down or grab a loan now, while there is still some credit around, or wait for the fallout from the recession?

Not only is there a current, there are many who even believe there is a depression coming, which will surely lead to deflation. Normally, deflation will in turn lead to lower interest rates, so this indicates a wait and see attitude is the best to take right now.

Some lenders are still actively seeking borrowers. Many small lenders never had the capital to delve into the giant home loan programs that many of the larger banks did. In this case, being small was an advantage, since many of them were insulated from the problems now haunting most of the credit industry.

A second good argument for waiting is that home prices continue to plummet, with predictions of futher price cuts of as much as 35%, even after the 20 to 25% decreases already seen. The Case-Schiller study published in November of 2008 reported year on year decreases of 17% nationally, with 25% in some areas. If the scenario is set not only for decreased rates, but also for lower home prices, it would seem wise to wait until more of the credit crisis fallout can be judged.

http://www.classic-realestate.com/term-life-insurance-canada-the-news-in-the-interest-rate-world.html

reviewed by Moishe Alexander, CFC canadian funding corp CEO

In Ottawa, housing sales jumped 12.5% in June to 1,895, also a new record for the month.
The average sale price in the GTA last month $403,972, up 2% from a year earlier. In Ottawa, the average sale price rose 3% annually to $306,925.

“I think the next stage” might be price pressure, said Doug Porter, deputy chief economist at BMO Capital Markets. “The moderation we have seen in prices may not last long if this kind of sales and listing balance remains in place.”

Porter said the mad scramble to buy a house is playing out across the country, as consumers wade back into the market tempted by interest rates the lowest they’ve been in 50 years.
Five-year fixed rate mortgages were as low as 3.75% last month, though they’ve nudged back up to about 4.5% since.

“Vancouver sales were up about 76% from a year ago, the second best June ever for them. Calgary sales were up 27%, and Edmonton sales were up 38%,” said the economist. “A lot of people emerged from their foxholes over the winter and have been brought in by low mortgage rates or a belief the economy is going to improve.

“There was some pent-up demand, things almost froze over solid over the winter.”

http://ontariomortgageinfo.blogspot.com/2009/07/housing-sales-soar-in-ontarios-biggest.html

brought by Moishe Alexander, CFC canadian funding corp CEO

Potential buyers were asked to rank their top incentives for purchasing a first property. While home prices and interest rates took the number one and two rankings, respectively, the third most popular incentive was the First-Time Home Buyers’ Tax Credit. The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.

“When first time buyers stepped out of the market in the fourth quarter of 2008, at the height of the global recession, their absence was profoundly felt.  Without significant volumes of entry-level homes trading hands, the entire market limped through the winter months.   First time buyers are back in force this spring, and with them the beginnings of a market recovery.  While these consumers appreciate government incentives such as tax credits, greater RSP deduction limits and rebates on home renovations, it is markedly improved affordability that is proving to be the powerful drawing card,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.”

Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. In provinces such as British Columbia where high housing prices have kept some buyers out of the market in recent years, 92 per cent of potential first-time buyers are now motivated by low interest rates and 96 per cent say lower home prices are likely to prompt them to buy.

In Atlantic Canada, where local economies have been resilient in the face of a worldwide recession and housing markets remain stable, 43 per cent of first-time buyers say they that job security is a factor in their decision to buy, while 84 per cent of buyers in British Columbia and Alberta said job security will influence them.

Atlantic Canadians were less motivated than other Canadians by declining interest rates, with only 72 per cent saying it will likely prompt a buying decision, compared to 86 per cent of Canadians overall. Buyers in Ontario and Quebec rated the Home Renovation Tax Credit as a bigger factor in their buying decision, compared to the Canadian average.

Mr Soper continued, “The significant response differences from region to region show how closely the residential real estate market is tied to broader economic trends and consumer confidence. Buying your first home is a major life decision, and people are more likely to purchase a home if they feel comfortable about the state of the economy and confident that they will have a job to support their new mortgage obligation.”

Top Incentives for First-Time Buyers across Canada
Potential first-time buyers were asked to choose their number one incentive for purchasing a first property. The table shows the percentage of respondents who selected each factor as their top incentive.

REGIONAL SUMMARIES

Atlantic
Overall activity in the housing market has remained steady in the Atlantic region with first-time homebuyers continuing to enter the market.  Low interest rates and recent government incentives, such as the Home Renovation Tax Credit, greater RSP deduction limits and the First-Time Homebuyer’s Tax Credit speak to affordability.  Buyers in this area are entering the market that would not have a few years ago, due to these influencing factors. Entry-level buyers in Newfoundland, Prince Edward Island, New Brunswick and Nova Scotia continue to search for detached bungalows, with the average price ranging from $157,000 in Charlottetown to $215,667 in Halifax during the first quarter of 2009.

Quebec
First-time buyers continue to pursue the dream of home ownership in Montreal, as the number of entrants to the housing market has remained relatively stable. Low interest rates are contributing to increased market entry with 41 per cent of first-time buyers suggesting this is the key incentive driving the purchase of their first property, followed by 13 per cent who suggest lower housing prices might influence their buying decision. With 47 per cent of new buyers in Quebec planning to settle in urban areas, buyers are planning to invest and live in their first home for ten or more years.  Fifty-six per cent of first-time buyers hope to purchase a property in the $150,000 to $300,000 price range.

Ontario
Encouraged by recent government initiatives, home ownership in Ontario is becoming a reality for an increasing number of younger purchasers.  Across Ontario, 36 per cent of potential first-time buyers are most likely to purchase property in an urban setting.  Condominiums continue to attract first-time buyers in the Greater Toronto Area with urban communities at accessible price points appealing most to market newcomers. In addition to affordability, location is a leading factor dictating condominium appeal. Neighbourhoods in Toronto’s east and west downtown core are popular with first-time buyers. In Ottawa, affordability continues to drive activity and most first-time buyers are opting to purchase in suburban areas where properties typically cost $50,000 to $75,000 less than in the city centre. Active first-time buyer markets include Orleans, Barrhaven and Kanata.

Manitoba & Saskatchewan
Thirty per cent of Prairie buyers planning on purchasing their first home in the next three years will choose a detached bungalow. The second-most popular choice for first-time buyers is condominiums at 21 per cent, followed by detached two-story homes at 15 per cent. In Winnipeg, up-and-coming neighbourhoods for first-time buyers include River Heights – which has traditionally been attractive for people entering the market – Fraser’s Grove and East / North Caldonin. With a good selection of older bungalows and two story homes, Broders Annex is the hottest neighbourhood for first-time buyers in Regina.

Alberta
Alberta’s urban centres continue to be popular with first-time buyers, who make up nearly a third of home sales in both Calgary and Edmonton. Condominiums and detached bungalows are the most popular choices for first-time buyers in Edmonton, where lower housing prices and low interest rates are the biggest incentives for buyers entering the market for the first time. Popular areas for new buyers include the suburbs, where a new condominium may be within budget, the university area, where many parents are buying for their kids, Allendale and McKernan. In Calgary, new buyers are most interested in inner city condominiums and detached houses in the suburbs, with many seeking new or renovated homes.

British Columbia
With home prices either flat or declining in many communities in British Columbia and with interest rates at record lows, first-time buyers are taking advantage of greater affordability, with female buyers leading the trend. Sixty per cent of the buyers getting into BC’s housing market for the first time are women. In British Columbia, 40 per cent of prospective first-time buyers intend to purchase a ‘fixer-upper’ while 80 per cent would take advantage of the Federal Government’s Home Renovation Tax Credit in making upgrades to a home. First-time buyers in Vancouver are favouring condominiums and townhomes, however an increasing number of entry-level buyers are finding affordable detached homes outside the city in the Fraser Valley suburbs.

The survey portion of the Royal LePage First-Time Homebuyers’ Report was conducted by Pollara from April 29, 2009 to May 8, 2009 among 474 first-time homebuyers in Canada. The online survey was conducted among a randomly-selected sample of 474 adult Canadians who are likely to purchase their first home in the next 3 years.  A probability sample of this size with a 100% response rate would have an estimated margin of error of +/- 4.5 %, 19 times out of 20. The data was statistically weighted to ensure the sample’s regional and age/gender composition reflects the actual Canadian population according to the most recent Census data.

http://torontorealestatetrends.com/royal-lepage-first-time-home-buyers-report/

reported by Moishe Alexander, CFC CEO

Following gains in April, employment decreased by 42,000 in May, led by further manufacturing losses in Ontario. The unemployment rate rose by 0.4 percentage points to 8.4%, the highest rate in 11 years. Since the employment peak of last October, employment has fallen by 363,000 or 2.1%.

While there were pronounced losses in Ontario in May, employment increased in Manitoba, Nova Scotia and Saskatchewan, and was little changed in all other provinces.

In addition to manufacturing losses in May, transportation and warehousing also declined. Public administration was the only industry with a notable employment increase.

Employment declines in May affected mostly men and women aged 25 to 54, while there were employment increases among women aged 55 and over.

There were large declines in full-time employment (-59,000) in May, bringing total full-time losses since October to 406,000 (-2.9%). Over the same period, part-time employment has continued to trend up, increasing by 44,000 (+1.4%).

The average hourly wage for employees was 3.4% higher in May compared with the same month a year earlier, the lowest year-over-year increase in two years.

Continued employment losses in Ontario

Ontario was the only province to experience a substantial employment decline in May, down 60,000, bringing total losses since last October to 234,000 or 3.5%. While Ontario accounts for 39% of the total working-age population, it has experienced 64% of overall employment losses since the start of the labour market downturn.

Ontario’s unemployment rate in May rose by 0.7 percentage points from the previous month to 9.4%, the highest in 15 years.

In May, both manufacturing and construction employment continued their downward trend in Ontario. Since October, the number of workers in manufacturing has fallen by 14.0%, while it has decreased by 9.3% in construction.

Employment in Quebec was unchanged in May. An increase in labour force participation pushed the unemployment rate up to 8.7%. Since last October, employment is down by 0.7% in Quebec.

Manitoba and Saskatchewan added employment in May with gains of 3,900 and 3,100 respectively. Both provinces had an unemployment rate of 4.9%, the lowest in the country, and are the only two provinces with an increase in employment since last October.

Following declines in the two previous months, employment increased by 3,600 in Nova Scotia in May.

Sharp decline in manufacturing employment

Manufacturing employment continued on its downward trend with a decline of 58,000 in May, mostly in Ontario. This brings losses since October to 186,000 or 9.4%, with the largest decline in transportation equipment manufacturing. Ontario has experienced the brunt of overall manufacturing losses over this period.

In May 2009, there were 778,000 factory workers in Ontario, the lowest level since comparable data became available in 1976. Manufacturing employment in Ontario reached a peak in November 2002 with 1,115,000 workers.

There was also a decline in transportation and warehousing (-16,000) in May, bringing total losses in that industry to 48,000 (-5.5%) since October. Public administration was the only industry with notable gains in May, up 19,000.

Self-employment fell by 32,000 in May, offsetting the gain in April. The number of private sector employees continued to decline, down 36,000 in May, while public sector employment was up 27,000, largely driven by the gains in public administration.

Since October, the number of private sector employees has fallen by 2.9% and public sector employment has declined by 1.3%. Over the same period, the number of self-employed has shown little change.

Fewer people aged 25 to 54 working

Employment fell by 50,000 in May for persons aged 25 to 54, with losses of 28,000 among men and 22,000 among women. Since the start of the labour market downturn, however, it is men in this age group who have experienced most of the losses, down 3.4%, while employment among core-age women has fallen by 1.1% over the same period.

Employment for women aged 55 and over increased in May, up 16,000. Since last October, employment among older women has risen by 3.1%, while employment for older men has shown little change.

Although employment edged down among youths aged 15 to 24 in May, losses for this group have been substantial during the current labour market downturn, with losses since last October totalling 134,000 or 5.1%. In May, the unemployment rate for youths climbed to 14.9%, the highest rate since 1999.

A difficult start to the summer for students aged 20 to 24

From May to August, the Labour Force Survey collects labour market information about young people aged 15 to 24 who were attending school full-time in March and who intend to return to school in the fall. The May survey results provide the first indicators of the summer job market, especially for students aged 20 to 24, as students aged 15 to 19 were not yet out of school for the summer. The data for June, July and August will provide further insight into the summer job market. The published estimates are not seasonally adjusted; therefore comparisons can only be made from one year to another.

The summer job market started in May for students aged 20 to 24. The number of employed students fell by 59,000 compared with a year earlier, all in full time. At the same time, their participation in the labour force fell substantially from 75.2% to 68.6%. May’s unemployment rate was 18.3% for this group of students, compared with 15.4% in May 2008.

Full Report Available here:

http://www.statcan.gc.ca/daily-quotidien/090605/dq090605a-eng.htm

Canada Mortgage and Housing released its Spring Rental Market Report today. Highlights:

• The average apartment vacancy rate in Alberta’s urban centres increased from 2.9 per cent in April 2008 to 4.6 per cent in April 2009. All centres except Grande Prairie reported a higher vacancy rate in 2009.
• The 2009 vacancy rates ranged from a low of 1.2 per cent in Cold Lake to a high of 8.5 per cent in Grande Prairie.
• Calgary and Edmonton, the two largest urban centres, reported vacancy rates of 4.3 and 4.7 per cent, respectively.
• The provincial average rent for all unit types was $962 per month in April. At $2,088, Wood Buffalo had the highest average monthly rent amongst all urban centres in Alberta, while Medicine Hat had the lowest average rent at $654 monthly.

Brought by Moishe Alexander, CFC CEO.

Residential home values and monthly trends for Montreal Metro Area, Quebec Canada, report from Moishe Alexander

Home Values Service © 2009 Homes-Market.com – Real Estate Search

Home Values Service © 2009 Homes-Market.com – Real Estate Search

All the Canadian newspapers are aflutter because the Canadian Real Estate Association released their monthly report today, with positive news. I think people tend to get over excited about these releases whether positive or negative, but, here is the gist of it.

Resales of existing Canadian homes showed continuing improvements in in May, with both the number of transactions and the national average price on the rise. The national average sale price in May hit the highest monthly level on record, at $319,757, which was up four-tenths of a percentage point from the previous record in May 2008.

The real-estate association said the dollar value of sales through its members reached $11.4 billion in May, up 10 per cent from the previous month and more than 50 per cent above the low of $7.5 billion in January.

The association said the the rebound in activity was led in some of the most expensive local markets in Canada and that had the effect up pushing the national average price upward.

Seasonally adjusted sales were up on a monthly basis in about 70% of local markets. Monthly activity gains in Toronto (9%), Calgary (25%), Montreal (10%), Vancouver (8%), and Edmonton (12%) contributed most to the overall increase in monthly activity.

“Inventory levels are still high in many markets, but fewer new listings and rising sales activity suggests that the selection of homes available for sale may shrink as the year progresses. The supply of homes up for sale needs to be drawn down further before average price increases become more widespread among local markets,” said CREA economist Gregory Klump.

http://www.edmontonrealestateblog.com/my_weblog/2009/06/edmonton-brings-up-the-national-average.html

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage.

“The survey results are encouraging and provide insightful information, indicating that Canadians feel positive about Canada’s housing market. As well,  Canada’s Economic Action Plan’s home purchase and renovation incentives, and CMHC’s recent outreach campaign to help Canadians who may be facing difficulties with their mortgage payment, are clear actions to support homeowners and the housing market.” said Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “

Canadian mortgage consumers recognize the benefits associated with mortgage loan insurance (MLI). According to the survey, 80% of recent buyers believe that MLI provides an important benefit to the financial system. Similar to CMHC’s last Mortgage Consumer Survey, the 2009 survey also indicates that Canadians continue to be well served by the mortgage industry, with 77% of recent mortgage purchasers expressing satisfaction with the service received from their lender or broker.

http://montrealrealestateblog.com/canadian-home-buyers-savvy-and-optimistic/

reported by Moishe Alexander, CFC CEO

This case involves violation of several rules under the RECO Code of Ethics regarding ethical behaviour, misrepresentation, competence, and unprofessional conduct.

In September 2006, RECO received a complaint from a company that held a mortgage for a property located at 1-A Street.  The printout of the MLS listing which was provided to obtain the mortgage in November of 2005 showed that 1-A Street was listed at $229,000.  When 1-A Street went into foreclosure it was determined that 1-A Street was worth less than $65,000.

A review of the listing showed that 1-A Street was listed by Brokerage A with Salesperson A in November 2005 at $229,000 and the listing was set to expire on July 17, 2006.

In November 2005, 1-A Street sold for $220,000.  The Agreement of Purchase & Sale indicated that there were no real estate brokerages involved in the transaction as the acknowledgement and commission trust sections of the Agreement of Purchase & Sale were not signed.  Further, the deposit was to be held by “The Vendor.”

On inquiry into the transaction, RECO Staff met with Broker A, the Broker of Record of Brokerage A, and confirmed that 1-A Street was not sold through Brokerage A.  Further, the appointment log on file showed that 1-A Street had never been shown during the time it was listed with Brokerage A.

Salesperson A wrote to RECO Staff and stated that the Seller was introduced to him by a client in October 2005, and that a few days later, the Seller asked him to view the Seller’s property.  When Salesperson A looked at the property, he advised the Seller that the property was worth about $100,000.  A week later, the Seller contacted him and offered the listing to him but the Seller insisted that the property be listed at $229,000.

Salesperson A stated that because he did not have many listings at the time, he was excited to get one and therefore listed the property at the price suggested by the Seller.  Salesperson A also confirmed that the listing expired without any showings.

THE FINDINGS

The RECO panel determined that Salesperson A acted in an unprofessional manner when he:

a) listed 1-A Street at a price that he knew was overly inflated, and;

b) did not do what a reasonably prudent registrant would have done to avoid allowing his services, including authorizing MLS listings that included grossly inflated property value, to be used for improper purposes.

Salesperson A thereby breached the following Rules of the RECO Code of Ethics:

RULE 1(2) ETHICAL BEHAVIOUR – A Member shall endeavour to protect the public from fraud, misrepresentation or unethical practice in connection with real estate transactions.

RULE 10 – MISREPRESENTATION – A Member shall not make any statement or participate in the creation of any document or statement that the Member knows or ought to know is false or misleading.

RULE 42 – COMPETENCE – A Member shall render conscientious service with the knowledge, skill, judgement and competence, in conformity with this Code of Ethics and the standards which are reasonably expected of Members.  When the Member is unable to render such a service, either alone or with the aid of other Members, the Member shall decline to act.

RULE 46 – UNPROFESSIONAL CONDUCT – A Member shall not engage in an act or omission relevant to the practice of the profession that, having regard to all the circumstances, would reasonably be regarded by Members or the public as disgraceful, dishonorable, or unprofessional.

PENALTIES AND COSTS

Salesperson A was ordered to pay a penalty of $7,000 within 120 days of the decision of the Discipline Committee.

__________________________

My thoughts?

This is a case of blatant over-pricing; a house valued at $100,000 that eventually sold for $65,000 was listed at $229,000 and never received a single showing, and the actions of Salesperson A breached four rules of the RECO Code of Ethics.

So what then do we make about under-pricing?

How is listing a $650,000 house at $559,000 (in hopes of getting $700,000) any different from over-pricing in the above examples?

I’m playing devil’s advocate here, because I do work for sellers as often as I work for buyers, and many sellers have it in their heads that the in-thing to do is under-price and hope for a bidding war.

I have to do what my seller wants, right?

Well, in the above example, Salesperson A took the listing for a $100,000 house at $229,000 because the seller told him to!  Yet it was the salesperson that was held accountable.

So how is under-pricing different?

I just don’t know anymore.

Frustration aside, I still don’t like the practice of under-pricing.  It’s just so sleazy and fraudulent, in my humble opinion.

Holding back on offers is one thing, but deliberately under-pricing is another altogether.

Maybe I’m just becoming too honest?

http://torontorealtyblog.com/2009/06/12/overpriced/

Info brought by Moishe Alexander, CFC CEO