Posted: October 13, 2009 at 7:18 am | Tags: Action, Alexander, canada, CMHC, Colborne, Cramahe, Diane Finley, Economic, government, Housing Market, Infrastructure, loan, Marc Coombs, MILP, Minister Responsible, MP Norlock, Northumberland, Ontario, Plan, Rick Norlock, Township, wastewater
Posted by Moishe Alexander
The Government of Canada announced today that the Township of Cramahe has been approved for an infrastructure loan as part of Canada’s Economic Action Plan.
The announcement was made by the Rick Norlock, Member of Parliament for Northumberland – Quinte West, 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 Township of Cramahe has been approved for more than $1.3 million in a low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP) for the expansion of the existing wastewater treatment system in the community of Colborne.
“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said MP Norlock. “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 the Township of Cramahe and the Village of Colborne, 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 will 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 to cost-shared federal infrastructure programming.
“Receiving financing from CMHC for the Colborne Wastewater Treatment Plant upgrades is an extremely important part of the success and implementation of this project in that it provides an affordable option for the municipality to contribute our 1/3 of the $6.3 million dollar project,” stated Marc Coombs, Mayor of Cramahe Township. “The upgrades to the plant will ensure the future sustainability of the Township of Cramahe as a strong community, with a clean and healthy environment and a strong economy.”
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.
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 — homes that will continue to create vibrant and healthy communities and cities across the country.
Posted: February 24, 2009 at 7:18 pm | Tags: activity, Alexander, canadian funding corp, canadian funding corporation, cent, construction, demand, economy, employment, growth, home, Housing Market, market, Moishe, moishe alexander, North Monaghan, Ontario, Peterborough, Peterborough City, price, region, review, South Monaghan, Toronto, Township, US
February 24, 2009 — Moishe Alexander’s review on how the current world economy and Canadian economic turndown is affecting Peterborough Housing Market
Moishe Alexander’s Review
New Home Market
Slowdown of New Housing Market
Peterborough - Credit Bobolink, Flickr Creative Commons
Moishe Alexander says Activity in the new housing market in Peterborough will moderate over the remainder of 2008 and in 2009. This pullback will be due to past price gains, an abundant selection of homes for sale in the resale market, and to some extent the economic slowdown. Though Peterborough’s economy is not as export-dependent as other regions, it will be somewhat affected by the strong Canadian dollar and trends in the U.S. economy. Starts will total 430 units by the end of 2008 and 410 units in 2009. Single-detached homes will continue being the pillar of home construction, with dominant shares of 74 percent and 76 percent over 2008 and 2009 respectively. Meanwhile, rowhouses will account for 14 per cent of total starts and will register total of 65 units and 56 units in 2008 and 2009 respectively. Apartment construction will remain stable at 40 units for both 2008 and 2009. While the Peterborough Metropolitan Area (CMA) covers the regions of Peterborough City, Otonabee-South Monaghan Township, Cavan-Millbrook-North Monaghan Township, Douro-Dummer Township and Smith-Ennismore-Lakefield Township, Peterborough City accounts more than two thirds of new construction in the area.
Moishe Alexander says The average price of single-detached homes increased rapidly in the past several years, pulled up by the construction of more high value homes. In 2009, the average price of a newly absorbed single-detached home is expected to rise to $362,000, 2 per cent up from an estimated $355,000 in 2008.
Resale Market
Resale Market Cooling Off
Moishe Alexander says Sales of existing housing are expected to moderate by 5 per cent in 2008, to 2,750 units and by another 7 per cent in 2009. Demand will soften as employment growth slows.
Sales will decrease because fewer renters will make the move to ownership. The average price has increased quite strongly over the last few years. At the same time, part-time employment has increased faster than full-time job creation.
Moishe Alexander says This has made the decision to rent more attractive than home ownership for some households. With fewer renters becoming owners, the vacancy rate will decrease and rental costs will inch higher over the next two years.
Moishe Alexander says The strong increase in prices has drawn more sellers to the market. As a result, new listings will reach 5,300 units in 2008 from 5,085 in 2007, before declining to 5,200 units in 2009. The decrease in sales of existing homes and the increase in the listings will push the sales to new listings ratio downward, indicating balance between demand and supply in this market.
Moishe Alexander says Overall, despite the slowdown in activity, the housing market in this region is still healthy, in part, because housing prices in Peterborough continue to be much lower than in surrounding markets. The price differential continues to attract people to the region.
Economic Trends
Healthy Local Economic Conditions
Moishe Alexander says The majority of the population growth in Peterborough is occurring in two age groups: 20-24 and 45-64. In years to come growth in these significant age cohorts will continue to bolster housing demand as these two groups are associated with firsttime or repeat home buying.
Moishe Alexander says The Peterborough region is expected to benefit from several projects financed by the public and private sectors. The projects will have a positive impact on job growth, especially in the construction and service sectors. As the biggest employer in the region with more than 2000 employees, the health centre, which moved to a new facility in June 2008, is expected to increase its number of workers over the next two years. Furthermore, Peterborough will benefit from the financial contribution from three levels of the government to help with different projects for infrastructure needs and businesses growth, including projects such as the proposed rail transportation link from Peterborough to Toronto. Nearly 80 per cent of employment in Peterborough is in the services sector. The services sector will continue to expand, taking advantage of the high investment in support of the aging population and the increased hiring of mature part-time employees. Yet, this strength in the services industry will not completely offset changes in full-time employment in the goods-producing sectors. Therefore, employment is expected to grow modestly by 0.3 per cent to 56,800 and by 0.5 per cent to 57,100 in 2008 and 2009 respectively.
Mortgage Rates
Moishe Alexander says 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/65716/65716_2008_B02.pdf