Realtor with RE/MAX in Winnipeg, Manitoba, Canada <p class="byline first_byline">OTTAWA - The Bank of Canada hiked short-term interest rates for the second time in as many months on Tuesday in what analysts called an attempt to slow down household borrowing in the face of less rapid economic growth.</p> <div class="article"> <p>As expected, the central bank raised it's trendsetting policy rate a quarter point to 0.75 per cent, following a similar increase in June,.</p> <p>But the central bank did provide a mild surprise by acknowledging the economic recovery will unfold more slowly than it previously thought, scaling back the growth forecast by two-tenths of a point for this year and next to 3.5 per cent and 2.9 per cent respectively.</p> <p>And it moved back the projection for the economy returning to full capacity from the spring of 2011 to the last quarter of the year.</p> <p>The rate hike will likely have an impact on variable mortgages as the big commercial banks usually adjust their prime rates shortly after the Bank of Canada adjusts its key lending rates.</p> <p>But with household debt continuing to rise, BMO Capital Markets economist Michael Gregory said governor Mark Carney was clearly concerned about Canadians getting in over their heads.</p> <p>&quot;There are risks posed by rates being too low for too long and I believe those risks are beginning to crystallize. When credit is cheap, people consume more of it than perhaps is optimal over the long haul,&quot; Gregory said.</p> <p>Stephen Lingard of Franklin Templeton Managed Investment Solutions said the bank had also given itself more room to cut rates in the future if the economy turns sour.</p> <p>&quot;What central bankers don't want is a situation like Japan where policy rates are at zero and they have no ammunition left to stimulate the economy, so the governor is trying to normalize rates at a period when the economy is doing well,&quot; he said.</p> <p>The market appeared to react more to the dovish tone of the bank statement than to the rate hike, with the loonie falling slightly on the news.</p> <p>Market expectations of a rate increase at the next announcement date in September dropped from 65 per cent to 45 per cent, Gregory said.</p> <p>In addition, CIBC chief economist Avery Shenfeld said yields on longer-term bonds had actually fallen following the announcement because of Carney's dovish tone, meaning longer-term borrowing costs may come down.</p> <p>The weaker growth trajectory has essentially given the bank an additional six months to get interest rates back to more normal levels, Shenfeld said.</p> <p>In an accompanying statement, the central bank's governing council flagged several downside risks, including sovereign debt issues in Europe, &quot;uneven&quot; private demand in the United States, and a global recovery that is not yet self-sustaining.</p> <p>In Canada, the council said the recovery is still being led by government and consumer spending, but noted housing has slowed, and while employment growth remains strong, business investment is being held back by global uncertainties.</p> <p>&quot;This revision reflects a slightly weaker profile for global economic growth and more modest consumption in Canada,&quot; the bank said.</p> <p>&quot;Given the considerable uncertainty ... any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments,&quot; it added.</p> <p>The next scheduled interest rate announcement is Sept. 8.</p> <p>The central bank's governing council did not expand on its reasoning for the rate hike other than to say it is consistent with achieving its two per cent inflation target, and noting that at 0.75 per cent, it considers monetary policy to be considerably stimulative.</p> <p>Although growth will be slower in the next two years, the bank did lift its projection for 2012 to 2.2 per cent from the 1.9 per cent it had earlier forecast.</p> </div> http://www.randyleopold.com/blog.page?ArticleID=52276 2010-07-31T09:20:17.6485139Z <h1 class="top_head"><span style="font-size: smaller">The province unveiled a new $1.4-million program today to help families build more granny suites in new and existing homes.</span></h1> <div class="article"> <p>Housing and Community Development Minister Kerri Irvin-Ross said the program will help address the shortfall of low-rent housing in the city.</p> <div class="special"> <div id="factbox"><b>Secondary suites</b> <p>A secondary suite is considered secondary to a primary residence. <br /> It normally has its own entrance, kitchen, bathroom and living area. Such a suite is often one of the following types: <br /> . a suite below the main floor of a single-detached dwelling (a basement suite); <br /> . a suite attached to a single-detached dwelling; or <br /> . a suite detached from the principal dwelling such as a guesthouse.</p> <p><br /> &nbsp;</p> </div> </div> <!-- End Related Items --> <p>Homeowners are eligible for a forgivable loan up to $35,000 to cover up to 50 per cent of the cost of constructing&nbsp; self-sufficient suites, which can be added to existing homes or created within an residence, like a basement suite.</p> <p>Under the program loans will be limited to one secondary suite per principle residence. Property owners will be responsible for any costs over the maximum forgivable loan.</p> <p>Homeowners must demonstrate that the main dwelling meets minimum health and safety standards before funding is approved.</p> <p>Manitoba Housing must approve the project before work is started.</p> <p>Forgiveness is earned over a 10-year period on a pro-rated basis.</p> <p>Homeowners can rent out the suite to a relative, nanny or caregiver, and there must be a legitimate rental relationship under the Residential Tenancies Act.</p> <p>The rent for the secondary suite must be set at or below the Median Market Rent for the area the dwelling is located and must remain affordable to 10 years. The loan must be paid back on a pro-rata basis if the homeowner sells the house, stops renting out the suite, or rents it out above the maximum allowable rent.</p> <p>The loan does not cover bringing existing secondary suites up to minimum standards.</p> <p>It's expected most of the uptake for the program will be from residents in municipalities that already allow secondary suites, including Winnipeg.</p> <p>Construction of a secondary suite must follow proper zoning regulations and building codes.</p> <p>The program is based on legislation introduced this spring by NDP Maples MLA Mohinder Saran.</p> <p>Saran said the program extended families around the province the chance at spending more time together.</p> <p>&nbsp;</p> </div> http://www.randyleopold.com/blog.page?ArticleID=51677 2010-07-31T09:20:17.6485139Z <div class="editorialTxt"> <p>&nbsp;</p> <p>It&rsquo;s bemusing, while at the same time rather sad, to know that 55 years ago Winnipeg had a perfectly &ldquo;modern&rdquo; transit system that was thought to be antiquated by the people who were blessed by its presence. Today, we cast a wistful gaze back to that bygone era and imagine the benefits that could be derived if only the powers-that-be hadn&rsquo;t decided fossil-fuel-burning, pollution-spewing buses were the future instead of electric-powered, pollution-free streetcars.&nbsp;</p> <p>It&rsquo;s fitting that the WREN has been running a Heritage Highlights four-part series on the end of streetcars (We&rsquo;ve Had It, begun on May 28 with part 3 in this issue), especially when Mayor Sam Katz has recently been musing aloud about a light rail transit (LRT) system for the Southwest Rapid Transit Corridor running from the downtown to the University of Manitoba. The corridor is now in its $138-million first phase as a bus rapid transit (BRT) route. The next phase is a $210-million extension, but the city has reallocated these funds to other infrastructure projects to the chagrin of the province.</p> <p>Katz said the city has been told LRT is more cost-efficient than originally believed due to a scaled-down price tag of $50 per kilometre &mdash; a mere 32 per cent more expensive than BRT. While LRT basically uses the same type of infrastructure employed to operate the old streetcars in Winnipeg, such as overhead electric wires and rails, there are some differences. Not surprisingly, technological advancements have expanded the scope of LRT systems. For example, what Katz desires is a &ldquo;flexible&rdquo; streetcar which combines the ability to travel on rails embedded in streets and rails on dedicated corridors. A sharper turn radius makes the new streetcars able to better negotiate urban traffic than the old-style streetcars.&nbsp;</p> <p>As the champion of LRT, Katz has finally convinced city council to commission a new $100,000 study by city staff to investigate the technologies available. If the mayor gets his way, the BRT corridor will become a LRT corridor. But Katz isn&rsquo;t without his critics, including the provincial government which wants the city to complete the BRT corridor and forget about LRT.</p> <p>In a 2008 report, Dillon Consulting concluded converting busways to LRT is possible in Winnipeg as long as the original design features included station platform heights and turning radii that are necessary for LRT. A 2009 report, which was compiled by the consulting firm HDP and included input from other sources such as WinnipegREALTORS&reg;, concluded both BRT and LRT offered clear financial benefits. While BRT was deemed a safer financial alternative, the report said LRT created more transit-oriented development.</p> <p>Historically, transit reports have been innumerable. Unfortunately, the contents of reports often reflect what is wanted rather than what is actually needed. Although to be fair, there is no real evidence to suspect that the most recent transit reports were intentionally skewed in any specific direction.</p> <p>In the past, short-term goals rather than the big picture seem to have been the motivating factor. When transit made the changeover from electric streetcars to electric trolleys on rubber wheels and diesel buses in 1955, transit and city authorities had essentially made up their minds that streetcars were pass&eacute;. In the 1960s, other reports said the same of the trolleys, so they ceased running in 1970.&nbsp;</p> <p>Until 1953, Winnipeg transit was owned and operated by the privately-held Winnipeg Electric Company. The city&rsquo;s only interest in the company was the five-per-cent tax it earned on all &nbsp;passenger fares and whether the company fulfilled its agreement to provide sufficient routes and schedules (the city had the power to fine the company if there were transgressions).&nbsp;</p> <p>But by the late 1940s, transit systems across North America were undergoing a transition from private to public ownership, which companies, such as the WEC willingly accepted due to declining revenues generated. In the autumn of 1951, city council hired Norman D. Wilson, a nationally-renowned consulting engineer, for advice on public ownership of &nbsp;the transit system. It was Wilson who recommended that the provincial government initiate the process to establish &ldquo;an intermunicipal commission to take over and operate the transit system.&rdquo;</p> <p>According to the Wilson report, a publicly-run transit could pay its way, &ldquo;given reasonable stabilization of traffic and of costs.&rdquo; The report contained a number of &ldquo;big ifs&rdquo; that assumed declining ridership would &nbsp;level out and maintain a sustainable level, but it did not.</p> <p>Wilson outlined a program of &ldquo;modernization&rdquo; that would eliminate streetcars from the city&rsquo;s streets. Wilson reasoned that the high cost of operating streetcars made them a liability to a publicly-owned transit system, and cutting costs by eliminating streetcars and their infrastructure would make city-run transit successful. Buying larger buses to seat more passengers would also be a cost-saving measure, according to the Wilson report.</p> <p>Following the recommendations in a 1947 report, the process of removing streetcars and their infrastructure &ldquo;to permit freer traffic flow (for automobiles) and speed up service&rdquo;was begun, resulting in streetcars only running on Portage Avenue and Main Street.</p> <p>When streetcars were removed from service, no one really shed a tear. They were extremely old, with many dating back to the early 1900s, and as such rattled and shook as they made their way down the equally old tracks. The streetcars were extremely cold in the winter and unbearably hot in the summer. As the operator of the city&rsquo;s very last regularly scheduled passenger streetcar told me, the coal stoves were lit before each run, but by the time the cars hit the outside frosty air, they immediately became icy cold due to the many drafts originating from the loose window panes and slats in the wooden frame.</p> <p>The path to obsolescence was assured, as the WEC, followed by the Greater Winnipeg Transit Commission (today&rsquo;s Winnipeg Transit), made little effort to modernize the streetcars or upgrade the necessary infrastructure. One Free Press editorial said it was &ldquo;absurd&rdquo; to be sentimental about the demise of the city&rsquo;s streetcars, while another said the cars &ldquo;can be consigned without remorse or tears or pity to the junk heap.&rdquo;</p> <p>Ironically, as shown by today&rsquo;s renewed interest in streetcars, the so-called &ldquo;modernization&rdquo; of transit in 1955 was not so modern an idea after all.</p> <p>&nbsp;</p> </div> http://www.randyleopold.com/blog.page?ArticleID=51255 2010-07-31T09:20:17.6485139Z <img title="A home in Van Hull Estates listed in February." height="397" alt="A home in Van Hull Estates listed in February." src="http://media.winnipegfreepress.com/images/648*396/new-home1.jpg" width="648" border="0" /><br /> <p>WINNIPEG &mdash; Upper-end homes are back in big demand in Winnipeg, with a record 23 selling in the city in the first three months of this year, according to a new market report from RE/MAX.</p> <p>The real estate company said this year&rsquo;s first-quarter sales tally was a 155 per cent increase over the nine upper-end homes that sold in the first three months of last year, when the world was in the throes of recession.</p> <p>It also easily shattered the previous first-quarter record of 16 sales recorded during the resale-housing boom of 2008.</p> <p>RE/MAX defines the upper-end-homes market for Winnipeg as homes valued at $500,000 or more.</p> <p>It said the local surge in sales was part of a national trend which saw double and triple-digit sales increases in nearly all of the 13 cities and five sub-markets included in its RE/MAX Upper End 2010 Report.</p> <p>Kelowna, B.C. led the way in terms of percentage increase at 700 per cent, followed by Montreal at 300 per cent and Victoria at 275 per cent.</p> <p>It said improved economic conditions, rising personal wealth, immigration and foreign investment all contributed to the dramatic upswing in luxury-home sales in Canada.</p> http://www.randyleopold.com/blog.page?ArticleID=49198 2010-07-31T09:20:17.6485139Z <p><img height="412" hspace="10" width="646" border="0" alt="" src="/_mndata/randy/uploaded_images/924263.jpg" /><br /> OTTAWA - The Canadian dollar jumped nearly 1.5 cents Tuesday after the Bank of Canada issued its first unambiguous warning that it is preparing to raise interest rates.</p> <p>The central bank's policy statement Tuesday surprised no one by keeping the trend-setting interest rate at the record low 0.25 per cent for another announcement date, but it was clear about where it was heading next.</p> <p>The bank's governing council declared that with the economy and inflation growing faster this year than had been previously thought, there was no need to stay with its &quot;conditional commitment&quot; to leave rates unchanged until the end of the second quarter, or after June 30.</p> <p>&quot;This unconventional policy provided considerable additional stimulus during a period of very weak economic conditions,&quot; the council wrote.</p> <p>&quot;With recent improvements in the economic outlook, the need for such extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus.&quot;</p> <p>Hence, the council went on, it was withdrawing the conditional commitment.</p> <p>The bank also said it was ending its key emergency lending instrument that helped inject liquidity in money markets during the crisis, which economists called a clear signal about the central bank's future intentions.</p> <p>&quot;Removing the conditional commitment to keep rates on hold until July and ending purchase and resale agreements are as good as cementing a June 1 hike,&quot; said economists Derek Holt and Karen Cordes Woods of Scotia Capital.</p> <p>&quot;That leaves open the debate over whether (a hike of) 25 basis points or 50 basis points is likely.&quot;</p> <p>The loonie soared immediately after the 9 a.m. EST release, rising 1.52 cents to slight above parity with the American greenback.</p> <p>Markets had already been planning for the central bank to move off emergency rates and in the past few weeks had begun raising fixed, longer-term mortgage rates.</p> <p>Once the bank does act, short-term rates and variable mortgages are also likely to be increased.</p> <p>But the dollar's strong move suggests the hawkish tone in the statement was not all priced in.</p> <p>&quot;Simply put, this statement marks a dramatic change in tone by the bank, and doesn't rule out possible 50 basis point moves,&quot; said Douglas Porter, deputy chief economist with BMO Capital Markets.</p> <p>Several economists had been urging governor Mark Carney to move early on interest rates, but the vast majority felt the bank would lose credibility if it did so without a clear indication that inflation was getting out of control.</p> <p>A small minority, however, argued that the economy was still too weak to warrant any increase in interest rates this year, and that doing so could stall the recovery.</p> <p>Economists also feared that an early signal from the bank, ahead of the U.S. Federal Reserve, would light a fire under the loonie and make life even more difficult for Canada's battered manufacturing and export sector.</p> <p>The bank gave at most a mixed signal that it believes inflation is getting out of hand, however, it said it was more lively than it had expected.</p> <p>Nor is the economy in danger of overheating, judging by the bank's new forecasts for 2010, 2011 and 2012.</p> <p>The bank said the economy will advance 3.7 per cent this year, 3.1 per cent next year and 1.9 per cent in 2012. In January, its last forecast, it had growth at 2.9 this year, 3.5 next and gave no estimate for 2012.</p> <p>In essence, the bank has moved up its estimate for growth in the near term but left it relatively unchanged in the aggregate.</p> <p>&quot;This profile reflects stronger near-term global growth, very strong housing activity in Canada, and the bank's assessment that policy stimulus resulted in more expenditures being brought forward,&quot; it said.</p> <p>&quot;At the same time, the persistent strength of the Canadian dollar, Canada's poor relative productivity performance and the low absolute level of U.S. demand will continue to act as significant drags on economic activity,&quot; it added.</p> <p>As for inflation, the council said core prices have been firmer than projected, but that they were expected to ease slightly in the second quarter of this year and remain near the bank's two per cent target over the next two years.</p> <p>Total headline inflation, which includes volatile items such as gasoline prices, was expected to be higher than two per cent this year, but returning to target in the second half of 2011.</p> <p>The sum of the parts, the bank said, is that the economy will return to full capacity one quarter sooner than it had previously thought in the second quarter of 2011.</p> <p><br /> OTTAWA - The Canadian dollar jumped nearly 1.5 cents Tuesday after the Bank of Canada issued its first unambiguous warning that it is preparing to raise interest rates.</p> <p>The central bank's policy statement Tuesday surprised no one by keeping the trend-setting interest rate at the record low 0.25 per cent for another announcement date, but it was clear about where it was heading next.</p> <p>The bank's governing council declared that with the economy and inflation growing faster this year than had been previously thought, there was no need to stay with its &quot;conditional commitment&quot; to leave rates unchanged until the end of the second quarter, or after June 30.</p> <p>&quot;This unconventional policy provided considerable additional stimulus during a period of very weak economic conditions,&quot; the council wrote.</p> <p>&quot;With recent improvements in the economic outlook, the need for such extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus.&quot;</p> <p>Hence, the council went on, it was withdrawing the conditional commitment.</p> <p>The bank also said it was ending its key emergency lending instrument that helped inject liquidity in money markets during the crisis, which economists called a clear signal about the central bank's future intentions.</p> <p>&quot;Removing the conditional commitment to keep rates on hold until July and ending purchase and resale agreements are as good as cementing a June 1 hike,&quot; said economists Derek Holt and Karen Cordes Woods of Scotia Capital.</p> <p>&quot;That leaves open the debate over whether (a hike of) 25 basis points or 50 basis points is likely.&quot;</p> <p>The loonie soared immediately after the 9 a.m. EST release, rising 1.52 cents to slight above parity with the American greenback.</p> <p>Markets had already been planning for the central bank to move off emergency rates and in the past few weeks had begun raising fixed, longer-term mortgage rates.</p> <p>Once the bank does act, short-term rates and variable mortgages are also likely to be increased.</p> <p>But the dollar's strong move suggests the hawkish tone in the statement was not all priced in.</p> <p>&quot;Simply put, this statement marks a dramatic change in tone by the bank, and doesn't rule out possible 50 basis point moves,&quot; said Douglas Porter, deputy chief economist with BMO Capital Markets.</p> <p>Several economists had been urging governor Mark Carney to move early on interest rates, but the vast majority felt the bank would lose credibility if it did so without a clear indication that inflation was getting out of control.</p> <p>A small minority, however, argued that the economy was still too weak to warrant any increase in interest rates this year, and that doing so could stall the recovery.</p> <p>Economists also feared that an early signal from the bank, ahead of the U.S. Federal Reserve, would light a fire under the loonie and make life even more difficult for Canada's battered manufacturing and export sector.</p> <p>The bank gave at most a mixed signal that it believes inflation is getting out of hand, however, it said it was more lively than it had expected.</p> <p>Nor is the economy in danger of overheating, judging by the bank's new forecasts for 2010, 2011 and 2012.</p> <p>The bank said the economy will advance 3.7 per cent this year, 3.1 per cent next year and 1.9 per cent in 2012. In January, its last forecast, it had growth at 2.9 this year, 3.5 next and gave no estimate for 2012.</p> <p>In essence, the bank has moved up its estimate for growth in the near term but left it relatively unchanged in the aggregate.</p> <p>&quot;This profile reflects stronger near-term global growth, very strong housing activity in Canada, and the bank's assessment that policy stimulus resulted in more expenditures being brought forward,&quot; it said.</p> <p>&quot;At the same time, the persistent strength of the Canadian dollar, Canada's poor relative productivity performance and the low absolute level of U.S. demand will continue to act as significant drags on economic activity,&quot; it added.</p> <p>As for inflation, the council said core prices have been firmer than projected, but that they were expected to ease slightly in the second quarter of this year and remain near the bank's two per cent target over the next two years.</p> <p>Total headline inflation, which includes volatile items such as gasoline prices, was expected to be higher than two per cent this year, but returning to target in the second half of 2011.</p> <p>The sum of the parts, the bank said, is that the economy will return to full capacity one quarter sooner than it had previously thought in the second quarter of 2011.</p> http://www.randyleopold.com/blog.page?ArticleID=49042 2010-07-31T09:20:17.6485139Z <div id="maintext"><!-- CONTENT PLACEHOLDER MAIN --> <div style="padding-bottom: 5px; text-align: right"><a href="javascript:history.go(-1)"><span style="color: #a76d23; text-decoration: underline">Back </span></a></div> <table width="100%" style="padding-right: 40px; padding-left: 40px"> <tbody> <tr> <td> <div class="editorialTxt"> <p>&nbsp;</p> <p>A new city and province three-year program will provide up to $20 million in incentives to spur further downtown residential development and affordable urban lifestyles to more Winnipeggers.</p> <p>&nbsp;The program is being hailed as a significant step in revitalizing the city&rsquo;s downtown, making it a more people-friendly place by increasing housing opportunities for all income levels.&nbsp;</p> <p>Premier Greg Selinger and Mayor Sam Katz said the program will result in up to 800 new residential units in the downtown.</p> <p>Stefano Grande, executive director of the Downtown BIZ, said housing is the most critical element in downtown mixed-use and compact development.</p> <p>&ldquo;Downtown Winnipeg has a lot to offer residents and we want to be sure that we are using the tools we have to encourage the growth and development of the downtown,&rdquo; said Selinger. &nbsp;</p> <p>He said the program will build on downtown redevelopment success by creating a flexible incentive for developers to create a variety of urban housing options for people of many different income levels.&nbsp;</p> <p>&nbsp;&ldquo;In order for our downtown to remain a vibrant choice destination, we need to ensure we are providing an attractive strong residential component that will keep feet on the street long after the storefronts close,&rdquo; said Katz. &nbsp;</p> <p>&ldquo;More people downtown means a safer downtown, and with the commitment from the province ... we are a step closer to increasing the capacity of the residential component that will allow those who want to live downtown a viable option.&rdquo;</p> <p>&nbsp;The Downtown Residential Development Grant Program is supported by &nbsp;the Community Revitalization Tax Increment Finance Act and will provide up to $20 million in incentives to developers over the next three years. Under the plan, developers will receive a grant that is equal to the incremental taxes on improved property for up to 15 years. Developers could be eligible for grants of up to $40,000 for each rental or condominium housing unit built or renovated in Winnipeg&rsquo;s downtown. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p> <p>The new program will build on the success of the city&rsquo;s current Downtown Multi-family/Mixed-use Building Grant Program by expanding the grant to include all of the incremental tax generated by new development. It will target the maximum grants to new condominiums with assessed values of $250,000 or less, and to new apartments with rents at or below the average rent levels for&nbsp;</p> <p>Winnipeg.&nbsp;</p> <p>A minimum of 10 per cent of the new housing units supported under this program will be for low-income individuals and families as well as people with disabilities. Rents for the units will range&nbsp;</p> <p>between $500 and $975 per month.</p> <p>&nbsp;&ldquo;We are pleased that this important revitalization tool is finally in place and look forward to the long-term benefits of increased residential development in the downtown,&rdquo; said Ross McGowan, president and CEO of CentreVenture, the city&rsquo;s arm&rsquo;s-length agency charged with promoting downtown revitalization.</p> <p>&nbsp;&ldquo;An increase in downtown residential population is the single most important long-term strategy to creating a safer and even more vibrant downtown that will draw more commercial activity, making it the place to live, work, shop and play,&rdquo; said Grande.</p> <p>The new downtown residential program will be officially launched in May.</p> <p>&nbsp;</p> </div> </td> </tr> </tbody> </table> </div> http://www.randyleopold.com/blog.page?ArticleID=48597 2010-07-31T09:20:17.6641144Z <p class="byline first_byline">WINNIPEG &mdash; The cost of buying a new home in Winnipeg edged a little higher for the second month in a row in December, according to new Statistics Canada figures issued today.</p> <div class="article"> <p>The agency said Manitoba&rsquo;s new housing price index rose by 0.3 per cent from November to December. That followed a 0.1 per cent increase from October to November.</p> <p>StatsCan said 19 of the 21 Canadian cities it surveyed saw an increase in new-home prices in December. The only exceptions were Calgary and Victoria, which both posted a 0.2 per cent decline.</p> <p>Nationally, the new housing price index rose by 0.4 per cent &mdash; the same increase as in November.</p> <p>Year-over-year, new-home prices in Winnipeg at the end of 2009 were 1.5 per cent higher than they were in December 2008, the figures show. Nationally, they were 0.9 per cent lower.</p> </div> http://www.randyleopold.com/blog.page?ArticleID=45557 2010-07-31T09:20:17.6641144Z <h2 class="subtitle">Surge in multi-family starts credited</h2> <!--endclickprintexclude--> <div class="article">A shortage of listings sucked the wind out of the resale-homes market in January, while the new-homes market was steaming to a 94 per cent increase in starts, according to new figures issued Monday. <p>For the first time in six years, fewer than 500 properties -- 487 -- sold during a single month through the WinnipegREALTORS (WR) Multiple Listing Service, the association said.</p> <p>The main reason for that was a shortage of listings in a number of areas of the city, including parts of East and North Kildonan, St. James and St. Vital, according to the association's residential market analyst, Peter Squire.</p> <p>The new-homes market saw foundations poured on 248 new residential units during the month, which was a 93.8 per cent increase over January 2009, Canada Mortgage and Housing Corp. said.</p> <p>The reason for the big increase was a surge in multi-family starts to 132 units.</p> <p>&quot;Typically, multi-family starts take a break during the winter months, so to see more than 100 units started in January is unusual,&quot; said Jeff Powell, the agency's senior market analyst for Manitoba. Powell noted the 10-year average for January is less than 42 multi-family starts.</p> <p>It was a different story with single-family starts, with 116 begun -- six fewer than in January 2009. But there were reasons for optimism, according to Manitoba Home Builders Association president Mike Moore.</p> <p>Moore said January 2009's single-family starts were based almost entirely on sales from the first half of 2008, before the global recession started to take hold. By January of last year, most prospective buyers had already fled the market.</p> <p>But by January of this year, many had returned, Moore said.</p> <p>&quot;We had excellent sales periods from the Fall Parade of Homes on, and those are the starts we're seeing now. So we're seeing positive starts numbers based on positive sales numbers.&quot;</p> <p>Squire and WR president Claude Davis expect the shortage of listings in resale homes to ease by spring.</p> <p>&quot;I think over the longer term, we're going to be looking at a fairly strong market this year,&quot; Davis said.</p> <p>He said January's weaker sales also could be due in part to the record number of MLS sales in December. He said some buyers may have bought sooner than planned because they thought there would be fewer buyers in December and therefore less competition for homes.</p> <p>Despite the seven per cent decline in units sales, the WR still set a new record last month for the highest dollar volume of sales in a December, at $102.1 million.</p> <p>That was due in part to a million-dollar-plus sale, and to the fact 35 per cent of homes that sold went for more than the list price. That's more than double the number in January 2008, although still well below the 50-per-cent plus that sold for above list during the spring of 2007.</p> <p>The high percentage of above-list sales boosted the average selling price for January to $223,000 from $219,000 in December.</p> <p>Nationally, Canadian real estate sales and prices are poised to set records this year, according to a new forecast that is bound to reignite calls in some quarters for tighter lending rules.</p> <p>murray.mcneill@freepress.mb.ca</p> <p>-- With files from Canwest News Service</p> <p>January numbers</p> <p>HERE'S how the local housing market performed in January:</p> <p>&nbsp;</p> <p>Resale homes:</p> <p>&quot;&ouml; Unit sales were down seven per cent from a year earlier -- 487 vs. 524 -- but the dollar volume jumped by six per cent to a new January record of $102.1 million.</p> <p>&quot;&ouml; 35 per cent of homes sold for more than the list price.</p> <p>&quot;&ouml; The average selling price for a detached home was 17 per cent higher than in January 2009, at $223,000.</p> <p>&quot;&ouml; Homes sold an average of 10 days faster.</p> <p>&nbsp;</p> <p>New homes:</p> <p>&quot;&ouml; Starts soared by 93.8 per cent to 248 units from 128 a year earlier.</p> <p>&quot;&ouml; All of the gains were on the multi-family side -- 132 units vs. six in January 2009.</p> <p>&quot;&ouml; There were six fewer single-family starts -- 116 vs. 122.</p> <p>&nbsp;</p> <p>-- Sources: Canada Mortgage and Housing Corp. and WinnipegREALTORS</p> </div> http://www.randyleopold.com/blog.page?ArticleID=45348 2010-07-31T09:20:17.6641144Z <h1 class="top_head">New condos for Exchange</h1> <h2 class="subtitle">150-unit Qualico project could lure needed amenities to core</h2> <p class="byline first_byline">&nbsp;</p> <!--endclickprintexclude--> <div class="article"> <div class="large_article_img"><img title="Streetside Development Corp. manager Martin Maykut next to a row of buildings on Market Street that will be turned into affordable condos." height="425" alt="Streetside Development Corp. manager Martin Maykut next to a row of buildings on Market Street that will be turned into affordable condos." src="http://media.winnipegfreepress.com/images/648*425/1856822.jpg" width="648" border="0" />&nbsp; <div class="captioninfo"> <p>Streetside Development Corp. manager Martin Maykut next to a row of buildings on Market Street that will be turned into affordable condos.</p> </div> </div> <p>The pace of condo development in Winnipeg's Exchange District just got a lot brisker with a commitment from Qualico Developments to build up to 150 units in seven retrofitted heritage buildings.</p> <p>The project will provide the update to that section of the east side Exchange it has been expecting for several years after the former owner of the buildings, Nygard International, shelved its own plans for a condo development a few years ago.</p> <p>It will also produce more modestly priced housing options for the area compared to the 175 new condo units that have been built on Waterfront Drive over the last five years. Larger units there have averaged about $400,000 in price.</p> <p>&quot;The focus will be on delivering more affordable downtown living, which we think will be a great future area.&quot; Marty Maykut, manager of Qualico's Streetside Development Corp. division, said Tuesday.</p> <p>He said in an interview the units will range in size from 500 and 600 square feet, potentially up 1,500-square-foot penthouses Maykut said might be built on top of the buildings.</p> <p>&quot;There might be some more expensive units, but we are going to do our best to deliver units in the $160,000 to $180,000 range,&quot; he said. &quot;We think that will be a really good price point for condos in the market.&quot;</p> <p>The development will take place in four or five separate projects, marketed as one concept.</p> <p>The first phase, at 133 Market St., might be ready for occupancy at the end of 2011.</p> <p>He said the project will depend on the city's tax-increment financing (TIF) plans and he's hopeful that a pending provincial TIF will also fall into place shortly.</p> <p>Bill Thiessen, a real estate agent with RE/MAX Professional Realty, has sold a lot of Waterfront Drive condos and said there is plenty of demand for less expensive condos in the area.</p> <p>&quot;I don't mean West Coast demand where they will line up around the block, but there has been so little inexpensive supply for so long that we have built up a good demand,&quot; he said.</p> <p>Thiessen said he also believes the presence of a mainstream developer in the area, as opposed to boutique projects or community-minded developers, represents an important new stage in the slow redevelopment of the Exchange District.</p> <p>&quot;When a company like Qualico has a real interest in downtown and they think it is healthy enough to plunk their money down there, then I think we have psychologically turned a significant corner,&quot; Thiessen said.</p> <p>Some say they believe the $20-million-plus project in the Market Avenue and James Avenue buildings could become the tipping point to the development of grocery stores and other residential amenities the area lacks.</p> <p>Choosing his words carefully, Maykut said, &quot;It is interesting that when Streetside shows up with Qualico's history and dollars behind you, I think rightly or wrongly it gives a great deal of reassurance about our downtown. I think it makes more people confident with it. I hope it is mutually beneficial to Streetside and our downtown that it can bring more investment dollars in there.&quot;</p> <p>Mal Anderson, executive director of the Exchange District BIZ, said the Qualico development, along with four or five other residential projects he said are in the works, gives Exchange District development an exciting kick.</p> <p>&quot;It's going to bring the critical mass up to where the grocery stores and other amenities will also come,&quot; he said. &quot;All these projects are going to draw more people to the area.&quot;</p> <p>Anderson pointed out that in the 2006 census there were only 440 residents in the area, but this project is likely to put the neighborhood over 1,000.</p> <p>The new condos will be built simultaneously with the redevelopment of the old Royal Bank tower on the west side of Main Street that will also include a Red River College residence and it is only a couple of blocks from the new Sport Manitoba building at Pacific Avenue and Lily Street.</p> <p>In addition, Anderson said the construction of a new parking structure on King Street and the new stage at Old Market Square will spruce up the west side of the Exchange District.<a href="mailto:martin.cash@freepress.mb.ca"></a></p> <!--1 $item--></div> http://www.randyleopold.com/blog.page?ArticleID=44801 2010-07-31T09:20:17.6641144Z <h1 class="top_head">Zoning memorandums to cost sellers $100</h1> <div class="article"> <p>A city council committee has approved a plan that will require homeowners to prove all additions, sheds, decks and other work complies with zoning regulations before properties are sold.</p> <p>Council's property and development committee voted 2-1 to approve a bylaw that technically requires home buyers to obtain zoning memorandums within two months of purchasing residential properties.</p> <p>But in effect, home sellers will wind up paying for the memorandums, which will cost $100 for new homes or $180 for existing homes.</p> <p>The bylaw, if approved by EPC and council, will take effect June 7.</p> <p>The city has wanted to create this bylaw for years, as existing property surveys are out of date.</p> <p>Property chairman Gord Steeves said the move will create safeguards that should prevent future lawsuits, especially as homes are often sold without inspections during the still-warm real-estate market.</p> <p>St. Vital Coun. Steeves said there will be some inconveniences, but added he believes the legal community supports the move.</p> <p>Steeves and Old Kildonan Coun. Mike O'Shaughnessy voted in favour of the plan. Transcona Coun. Russ Wyatt voted against the move because he felt it was &quot;a cash grab&quot; even though he agrees new surveying data is necessary.</p> <p>St. Boniface Coun. Dan Vandal, who has also called the new fee a cash grab, said last week that be believes Mayor Sam Katz's administration will use the proceeds to balance the operating budget this year.</p> <p>When aspects of the plan were made public in 2009, some members of the city's real-estate industry complained they were not consulted.</p> <p>The city claims it has since consulted real-estate lawyers, real estate agents and surveyors about the bylaw.</p> <p>Property department director Deepak Joshi said the fee will cover the cost of sending inspectors to see if work on properties complies with zoning regulations.</p> <p>The city plans to spend $301,000 to hire five additional inspectors to ensure the memoranda are processed quickly enough to ensure property sales are not affected.</p> </div> http://www.randyleopold.com/blog.page?ArticleID=44539 2010-07-31T09:20:17.6641144Z 7/31/2010 5:20:17 AM http://www.randyleopold.com/ 7/31/2010 5:20:17 AM randyleopold@gmail.com