“The decline in housing starts in September is attributable to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “However, starts of single homes, which are a barometer of the trend in housing markets, climbed in September to reach their highest level so far this year. The rebound in existing home sales and the upward trend in new home construction, support our expectation that housing demand has strengthened and that housing starts will be stronger in the second half of 2009.”

The seasonally adjusted annual rate of urban starts declined by 5.2 per cent to 131,500 units in September. Urban multiple starts decreased by 21.4 per cent to 62,700 units, while urban single starts moved up 16.8 per cent to 68,800 units in September.

September’s seasonally adjusted annual rate of urban starts increased by 11.8 per cent in Ontario, decreased by 20.2 per cent in Quebec, by 18.1 per cent in British Columbia, and by 4.7 per cent in the Atlantic, and was unchanged in the Prairies.

Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units in September.

Housing Starts YouTube Video

The home will be designed by Habitat Design + Consulting Ltd. and constructed by Insightful Healthy Homes Inc. as part of Canada Mortgage and Housing Corporation’s (CMHC’s) EQuilibrium™ Sustainable Housing Demonstration Initiative, which encourages designers, builders and developers to design and build the next generation of sustainable housing in Canada.

Senator Yonah Martin, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for CMHC, was joined today by Chris Mattock, President, Habitat Design + Consulting Ltd. and Arthur Lo, President, Insightful Healthy Homes Inc., along with sponsors and supporters in the ground-breaking of one of two EQuilibrium™ demonstration homes to be constructed in British Columbia.

“The Government of Canada is pleased to work with the private sector to develop such innovative homes. We congratulate Habitat Design + Consulting Ltd. and Insightful Healthy Homes Inc. on their winning design/concept and commitment to environmental responsibility,” said Senator Martin. “Harmony House is another example in British Columbia of how beautiful and healthy homes can also conserve energy and resources, and reduce pollutant emissions.”

The Harmony House team will integrate optimal solar orientation, energy efficiency and renewable energy systems into the design and construction of the home, in addition to using natural materials with low levels of pollutants. Photovoltaic panels will supply all the electrical energy needs of the home on an annual basis. Excess electrical energy produced during the day will be fed into the power grid. A “green switch” will turn off all unnecessary circuits at night and when the occupants are out. To reduce water use, landscaping will incorporate indigenous plants which will be irrigated with captured rainwater.

“We are very pleased to collaborate with CMHC and are extremely excited about how this project has come together,” said Mr. Lo. “Thanks to our dedicated team of experts and materials suppliers in fields such as solar energy, ventilation and indoor air quality, we are showcasing not just leading-edge design and construction, but what we believe is the future of healthy living.”

”Having the owners on board from the design stage has really helped shape this project,” said Mr. Mattock. “We have designed a live/work space for increased density living that will enable the owners to operate a complementary health care practice from a separate office space, cutting down on commuting and energy costs.”

Harmony House is one of 15 projects that have won CMHC’s national EQuilibrium™ sustainable housing competitions since the initiative was launched in 2006. All EQuilibrium™ projects will be open to both the general public and professional audiences for tours, and then monitored for performance by CMHC for one year, once occupied.

The home will be constructed by the Canadian Home Builders’ Association Central Interior (CHBA CI), in partnership with Thompson Rivers University (TRU), as part of Canada Mortgage and Housing Corporation’s (CMHC’s) EQuilibrium™ Sustainable Housing Demonstration Initiative, which encourages builders and developers to build the next generation of sustainable housing in Canada.

Cathy McLeod, Member of Parliament for Kamloops – Thompson – Cariboo, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for CMHC, was joined today by Darryl Caunt, President, CHBA CI, and Dr. Ulrich Scheck, Provost and Vice-President Academic, TRU, along with sponsors and supporters in the ground-breaking of the first demonstration home of its kind in British Columbia.

“The Government of Canada is pleased to work with the private sector to develop such innovative homes. We congratulate CHBA CI and TRU on their winning design/concept and commitment to environmental responsibility,” said MP McLeod. “The Kamloops Green Dream Home gives people in this region an opportunity to see first-hand how we can create beautiful, healthy homes, conserve energy and resources, and reduce pollutant emissions.”

The Kamloops Green Dream Home will integrate optimal solar orientation, energy efficiency and renewable energy systems into its design and construction, in addition to using natural materials with low levels of pollutants. To reduce water use, rainwater will be captured and drought-resistant native plants will be used on the site. The Green Dream Home will be built primarily by TRU students as part of their training program.   Once completed, the home will be open for public tours and then raffled off to raise funds for a local charity.

“We are proud that this project will showcase leading innovations in home energy efficiency and environmental responsibility for our local community, and serve as an example for similar projects across the country,” said Darryl Caunt.

“The Green Dream Home is an amazing opportunity for Thompson Rivers University students and faculty to be involved in a project that integrates all the elements that define TRU as the university of choice for environmental sustainability, career success and student engagement,” said Dr. Scheck. “The practical experience gained by participating in this initiative will enable our graduates to pursue careers as future leaders who will help Canadians develop and live in sustainable communities.”

The Green Dream Home is one of 15 projects that won CMHC’s national EQuilibrium™ sustainable housing competitions since the initiative was launched in 2006. All EQuilibrium™ projects will be open to both the general public and professional audiences for tours, and then monitored for performance by CMHC for one year, once occupied.

CMHC’s EQuilibrium™ Sustainable Housing Demonstration Initiative provides a new approach to housing in Canada, representing a fundamental change in the way Canadians think about their homes. It strives to balance our housing needs with environmental concerns. It brings together — under one roof — the principles of occupant health and comfort, energy efficiency, renewable energy production, resource and water conservation, and reduced environmental impact.

A worker constructs a new home in Geneva, Illinois, June 23, 2009. REUTERS/Jeff Haynes

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The National Association of Home Builders said its preliminary NAHB/Wells Fargo Housing Market Index was 17 in July, up from 15 in June.

Readings below 50 in the index, which was launched in January 1985, indicate more builders view market conditions as poor rather than favorable. The July index was above expectations of 16, based on a Reuters survey of economists.

“In an encouraging sign, the improvement was driven by a 3 point gain in the index of present conditions to 17, implying a pickup in new home sales,” said Michelle Meyer, an economist at Barclays Capital in New York.

“The fact that the gain was driven by current conditions is a positive sign, suggesting home buyer interest increased despite the rise in mortgage rates over June,” she said.

The rise in home builder sentiment is a positive for the U.S. housing market, which has been showing some signs of stabilization, with sales rising and home price declines moderating in many regions of the country.

“Builders are seeing slightly better sales conditions this month as consumers take advantage of the first-time buyer tax credit, low interest rates and attractive home prices,” NAHB Chairman Joe Robson, a home builder from Tulsa, Oklahoma, said in a statement.

The government’s $8,000 tax credit for first-time home buyers, part of the economic stimulus package, is helping boost sales.

But there is concern about what lies ahead, Robson added.

“A true recovery in the housing market and overall economy cannot take place until the continuing foreclosure crisis is abated and a decent flow of credit is restored to housing production,” Robson said.

“Meanwhile, the stalled jobs market is a major concern to builders and potential home buyers alike,” he said.

The gauge of current single-family homes sales rose to 17 from 14. The index of sales expected in the next six months, however, was unchanged at 26. But the measure of prospective-buyer traffic climbed, rising to 14 from 13, the group said.

The U.S. housing market is suffering the worst downturn since the Great Depression as a huge supply of unsold homes, tighter lending standards and record foreclosures push down home prices.

HOME BUILDERS ARE HURTING

U.S. home builders, struggling under sinking demand and a credit crisis, have faced a flood of homes in foreclosure.

But, interest rates on mortgages have fallen in recent weeks, a key development that could help turn the hard-hit housing sector around.

Home builders have curbed their new construction. They have also been reducing their inventories of unsold homes by slashing prices at the expense of profits to pay off debt and keep afloat.

“Although today’s HMI is positive news that helps confirm the market is bouncing around a bottom, the gain was entirely contained in the component gauging current sales conditions, while the component gauging sales expectations for the next six months remained virtually flat for a fourth consecutive month,” NAHB Chief Economist David Crowe said in a statement.

“Builders recognize the recovery is going to be a slow one and that we are facing a number of substantial negative forces,” he said.

On a regional basis, the housing market index declined in only one of the four regions in July. The Midwest was unchanged at 14 and the South posted a five-point increase to 20. The Northeast posted a three-point decrease to 16. The West was unchanged at 15 this month.

http://www.newsdaily.com/stories/tre56f599-us-usa-housing-homebuilders/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

Things are looking up for the market and by the end of ‘09 we should see properties start rising again. Property owners will love hearing this as some weren’t sure it would ever happen. Once the market hits rock bottom, it will start gaining steam and you will see pricing start to rise.

Knowing how the crash originally crashed is the only way you will be able to comprehend how there will ever be a rise again. Different components can easily be fingered as the market down fall. In 2000 the housing market starting a price rise that would last until 2006, in this time most communities would see their property price double.

As prices were rising at amazing rates, potential buyers acknowledged that they weren’t making enough money to purchase a home. There started to be a lot of houses on the market but no suitable buyers, this meant values had to come down in order for people to be interested in them.

Most people have seen all the news about how sub-prime mortgages played a big role in the crash of the market. Although this wasn’t a direct factor in the Kamloops real estate market, we were still affected, along with other cities in Canada.

Loans were being applied for by potential purchasers that knew they couldn’t handle the payments. Loans were still being approved for these buyers with little to no down payments and extended years on their mortgage terms.

Mortgage payments could not be met due to insufficient funds, so loan company’s pressed the home owners. People were beginning to lose there houses to foreclosure. The more foreclosures happen the more houses starting coming on the market. Prices would fall because there were not enough buyers for all of the houses. It was no longer a sellers market.

Faulty loans was a monster of a problem in America, but as we know, whatever happens usually affects us too. Their markets are now close to their ultimate low point. This is solid news for us because that means we will start seeing a rise.

The majority of large cities are already seeing a rise in real estate prices, meaning that a rise in the little communities shouldn’t be far behind. Also now that with the down trend in real estate pricing, you will see more people can afford to buy again. You will start to see how this will affect us in a positive way. It had to happen sooner or later.

http://www.real-estate-news-articles.com/real-estate-market-will-start-to-rise/

reviewed by Moishe Alexander, CFC moishe alexander CEO

The total number of houses sold rose by an amazing 27% in June while the average sale price rose 2%. Keep in mind that these statistics include all of the GTA from the Hamilton/Wentworth townline in the west to the Durham/Northumberland townline in the east and from Lake Ontario north into Lake Simcoe. Of course not all areas experienced the same amount of growth, however, Durham Region (on the most part) is in line with these increases. To see a 3 year comparable market evaluation for South Pickering, North Pickering, Ajax, Whitby, Oshawa and Courtice/Bowmanville click on Durham Region.

The other statistic to take notice of is the number of homes for sale this year as compared with last year. While sales have increased 27% this June, the number of new listings has decreased by 17% and the number of active listings has decreased by 30%. What does this mean for sellers and buyers? There is a lot less inventory to choose from and a lot more people who are looking to buy. This would explain the rise in the number of multiple offers we have been seeing over the past several weeks as well as the increase in prices.

Who knows where all of this will end up in the next several months. There is still some speculation in the economic circles that the “worst is yet to come” and yet others have changed their predictions to an earlier anticipated recovery.

http://getmovingwithkaren.blogspot.com/2009/07/june-housing-statistics-are-in.html

reviewed by Moishe ALexander, CFC  canadian funding corp CEO

Ordinarily, one would think that chattels are not included in an agreement of purchase and sale concerning real estate. And, most of the time they would be right.

However, this is not the case when we are talking about the sale of a business. Under the Real Estate and Business Brokers Act the term “real estate” is defined to include real property, leasehold and business whether with or without premises, fixtures, stock-in-trade, goods or chattels in connection with the operation of the business.

Bob operated a small electrical contracting company. After 25 years in the business, he felt that it was time to retire. In addition to the 10 trucks all clearly marked “Bob’s Electric”, he had recently purchased a minivan. Bob used this vehicle to get to work. He acquired it right at the end of the year so that he could maximize the depreciation. Bob listed the business and negotiated an excellent price.

You might imagine his surprise when it came to the day of closing and his lawyer had prepared a Transfer of the minivan for him to sign. Bob said it was not part of the deal. There was nothing about the minivan in the agreement of purchase and sale. This was true!

His lawyer reviewed the agreement and said that the definition of “real estate” when it concerned the sale of a business included chattels. Since the minivan had been acquired and used in connection with the business, no matter how remote this connection might be, the minivan was deemed to be part of the deal. The obligation rested upon Bob to clearly exclude it, if that was his intention. It did not have to be written into the agreement to become part of the deal. Silence meant the minivan was part of the deal.

So, on closing the purchaser received an assignment of the lease, the stock-in-trade, the fixtures, the 10 trucks, and to his surprise, Bob’s brand new minivan that he drove to work.

In addition, there is one more little problem here worth mentioning. Bob was attracted to the minivan because of the zero percent financing spread out over five years. You guessed it! The agreement of purchase and sale conveyed the title to the assets “free and clear of all encumbrances”. So, out of the funds due on closing, Bob had to pay off the loan on the minivan in order that the purchaser would get clear title.

This little glitch arises in many business transactions, but most of the time neither the buyer nor the seller are aware, and no one asks about the minivan that the owner uses to get to work. There was some good news however. Bob had been thinking about buying a Mercedes.

http://ontariorealestatesource.blogspot.com/2009/07/dont-sell-minivan-by-mistake.html

reviewed by Moishe Alexander, canadian funding corp CEO

The credit crisis has shifted the balance of power. Not since the days of the conquistadors has there been such an imbalance. Back then the Pope was the ultimate power and carved the New World in two between Spain and Portugal. Now it’s the split between old and new economies.

The levels of debt raised by the developed nations to bail out their banking systems is crippling compared to the emerging nations.  According to recent International Monetary Fund forecasts by 2014 the debt of economies in the developed world are expected to be more than 114% of GDP (up from 78% in 2006).  The forecasts for the emerging economies (including China) is just 35% (down from 38% in 2006).

With most of the developed nations in the worst economic condition since the second world war, the balance of power is clearly shifting in favor of the large emerging nations. China and India in particular.

Added to their new found lack of financial flexibility, the G-8 nations have another major problem: a lack of harmony in their thinking. Germany and Canada have been calling for a steady wind down of the emergency liquidity measures while the UK and US continue to favor pumping cash into the economies.

On the other hand the leaders of 5 major developing Economies (China, India, Brazil, Mexico and South Africa) are holding their own parallel meeting. This follows on from the first ever BRIC (Brazil, Russia, India, China) summit held last month in Russia. The developing powers are quickly putting in place their own structures and the old world is in danger of being left out of the new world order. The closer these developing powers become politically the less likely the dollar is to remain as the world’s reserve currency. Remember the BRIC nations currently hold some US$1.1 trillion of US government debt. At the BRIC summit Russia was calling for a move away from the US dollar.  It feels more and more like a whenrather than an if situation.

As investors, we are often faced with difficult decisions, especially those which involve putting cold hard facts ahead of personal feelings. We are entering such a phase now. We need to put aside our personal nationalism in the face of an obvious global power shift. Jim Rogers said in an interview last year that the best investment you could give your kids today is to buy them Chinese lessons. We agree.

As far as our financial portfolios are concerned we need to make sure we are having our piece of the emerging pie. There are unique risks to investing in the emerging world (e.g. political instability, weak legal systems etc) and you really have to do your homework. I would recommend keeping your exposure to less than 10% of your total portfolio. Also stick to highly liquid assets, like stocks and bonds. You don’t want to wake up finding that you never really owned that real estate you bought in China and it has been bulldozed to build a sports stadium, now do you?

http://www.contrarianprofits.com/articles/could-a-bric-alliance-crash-the-dollar/18846

reviewed by Moishe Alexander, CFC CEO

I do not know whether it has anything at all to do with my profession, or if it is the series of books that lawyers are so fond to prominently display behind their desks. Those old, conspicuous textbooks with ominous titles written in gold Gothic characters on yellowish or greenish hardbound covers, barely readable, much less understandable. I noticed that no matter whether the law office is located in Canada or in the United States, those textbooks look exactly alike. I still have to see a single lawyer actually reading one of them, however, so my personal theory is that those books are hollow inside and used to conceal who knows whatever arcane secret items or, perhaps, just unsavory culinary recipes. In real estate too we are fast approaching the time when our shelves are going to be filled with all sorts of books. Yellow, red and blue, with manuals covering all sorts of topics from Ethics in Real Estate to How to Write a Contract And Not Go To Jail. I have been tinkering with the idea of writing a manual myself – just a small pocketbook entitled “Top 10 Successful Strategies To Defuse Sellers Armed With Pitchforks”, which I figure would be an instant hit with many of us.

With the ever-advancing technology of our times fields of expertise that are crowd-oriented, such as the legal and real estate professions, are poised to experience dramatic changes in the forthcoming years. As it relates specifically to real estate, to be sure, technology has had already a great impact but innovation is not over yet and it is not confined merely to the use of sophisticated hardware. There is on the horizon a new conceptualization of professionalism, an absolutely novel way to haess individual resources for the common good of all. It is called ‘collective intelligence’, a techno-jargon concept that will revolutionize the way we – the professionals – think, act and interact among ourselves as well as with the communities we serve. Collective intelligence tinkers with the way cognition and information processing are structured and relayed to consumers, especially when they involve knowledge, expertise and leaing. It also delves into methods of gathering and sharing information and resources that bind different groups, or associations, or disciplines. Real estate is, of course, intertwined with banking, law, economics, marketing and urban sciences and collective intelligence links and bind together different networks or resources to coordinate a more efficient and comprehensive response to ever- sophisticated demands.

Real estate professionals are called more and more to field questions that go over and beyond the mere act of selling. In fact, it can be said that selling in real estate already represents the last stage when the professional is finally compensated. But before that there is an array of issues that must be confronted and answered, ranging from understanding regional economics such as, for instance, local job environments and trades to proficiency in specific areas such as cultural orientation and demographic diversity to acquaintance with well-defined facets of disciplines the likes of architectural styles, land-assembly and development, and contract law. This radicalization of the real estate business to come is in response to the evolution of choices of market participants. Although singular consumers do not have more power over market events than before, they certainly have improved their chances of getting what they want because they have a greater variety of choices. We are, in essence, entering an era where the professional leas and stores information gathered from a group or organization and is ready to deliver it to a consumer, or another group or organization, on demand for the purpose of enhancing choices through expertise.

Sharing information is of paramount importance in real estate, since there is not a ‘national’ market per se. Real estate is made of a compilation of local economies, each abiding to a set or sets of local inputs and variables. What is happening in Toronto does not directly affect what is happening in Vancouver. And yet, there is a common thread shared in the needs of individual expressions of market participants, no matter where they are located. The Realtor, as an integral part of his function and purpose, is going to be required to contribute to the building of a consensus decision-making process that involves meeting everyone’s needs and which is intended to promote and enhance the decision-making process of each individual consumer, whether a person, a group of persons or an organization.

http://realestatesold.blogspot.com/2009/07/tinkering-with-cognition.html

viewed by Moishe Alexander, CFC CEO