Mike Stewart, Downtown Vancouver Real Estate Specialist: An attack from the Left on EcoDensity

EcoDensity won't cut house prices

Straight Issues By Pieta Woolley

Publish Date: November 29, 2007

Mayor Sam Sullivan and his NPA colleagues want to bring densification to more neighbourhoods. Pieta Woolley photo.

Real-estate agent Richard Morrison, who specialized in investment properties, thinks the city's EcoDensity initiative is a great way to keep property values from skyrocketing in Vancouver. He just sold a single-family home, worth nearly a million dollars, to an investor, who then tore it down and built eight 1,000-square-foot units that will sell for between $400,000 and $500,000.

"Way more density is the only way I see a softening of the market," Morrison told the Georgia Straight on November 27. "$450,000 is very affordable. Much more than buying an average home in that neighbourhood for $800,000."

The problem is that $450,000 is still double what the average Vancouver family can afford if the home doesn't have a secondary suite. With a median household income of about $56,200, according to Statistics Canada, most families max out at a $300,000 mortgage if they pay 30 percent of their incomes over a 25-year term.

According to www.mls.ca/ , $300,000 will still buy a two-bedroom condo in some parts of East Vancouver. It will also buy a three-bedroom townhouse or a small, single-family home in Maple Ridge–a long commute and the opposite of EcoDensity's goal.

Vancouver, you are my density

> For the 15 years between 1991 and 2006, the city grew by about 106,000 people.

> The city also grew by about 69,000 housing units.

> At 2.2 people per unit, that should have accommodated 151,800 more people, which could have created the conditions for a housing glut and falling housing prices.

> Instead, housing prices doubled over that time period.

> In 2006, there were 4,736 new housing units completed in Vancouver–the most in a single year since 1995.

> The vast majority of those were in eastern downtown and the East Side.

> Strathcona, Kitsilano, and Kerrisdale received the fewest number of new housing units.

> In 2007, 3,294 new condo units will have been completed in downtown alone.

Sources: City of Vancouver Housing Centre; Statistics Canada; Canada Mortgage and Housing Corporation

At City Hall on November 27, Vancouver's director of planning, Brent Toderian, told councillors that EcoDensity won't provide housing that meets average incomes. He said that the initiative is really about keeping the market softer than it would be with less density.

"I don't think we could affect [housing] supply to the point that prices would go down," said Toderian. "Especially at the mid level."

Toderian was presenting his department's draft charter and draft initial actions on EcoDensity. It's the mayor-driven "acknowledgement that high quality and strategically located density can make Vancouver more sustainable, livable and affordable", according to www.vancouver-ecodensity.ca/ .

EcoDensity has been billed as supplying more housing through densification–laneway homes, condos on top of stores, rezoning sprawling house-oriented neighbourhoods to accommodate low-rise apartments–and prices would drop into the affordable zone.

Vision Vancouver councillors Heather Deal and Tim Stevenson slammed Toderian's draft for leaving out true affordability. Deal said EcoDensity, in this report, is no different from green bonuses for developers. Stevenson wanted to know if his "ordinary kids with ordinary jobs" will be able to afford to live in the city.

"What is ordinary may change in the future," Toderian responded.

Vancouver's developers have, in fact, been densifying Vancouver swifter than the population has grown for 15 years. And, instead of prices dropping, they've soared since 1991.

Morrison told the Straight that the rush to buy condos in Coal Harbour and Yaletown is fuelled by investors, rather than folks seeking out a primary residence. He would like to know who owns the condos downtown, and who is living in them. No one seems to know.

Vancouver senior planner Rob Whitlock told the Straight his department plans to study that as part of a rental survey in 2008-09.

"Empty housing stock is very difficult to estimate," he said. "BC Stats has previously undertaken some analysis based on hydro usage, which indicated that four percent of all downtown apartments were identified as unoccupied in 2003, with eight to nine percent of condo apartments included in that number." In addition, he said, the 2001 census found that 2,600 downtown apartments were unoccupied.

Whitlock defended the idea that building more homes leads to a softer market, if not affordability. "If the number of units had not occurred, housing prices in the city generally would have escalated at an even faster rate," he said, echoing the EcoDensity draft report. "The more difficult objective for EcoDensity will be addressing housing costs for those with lower incomes, working poor, families, and others who are unable to compete in the current market."

As Deal pointed out, there's nothing in the report that requires affordability. EcoDensity has gone on to another round of public consultation, and will be back before council February 24, 2008

Canadian dollar tumbles after rate cut - The Cut Works!

TAVIA GRANT

Globe and Mail Update

December 4, 2007 at 4:11 PM EST

The Canadian dollar hit its lowest level since September after the Bank of Canada cut its key lending rate Tuesday, citing a worsening U.S. housing market and turmoil in credit markets.

The currency shed more than a cent, trading at 98.80 cents (U.S.) from Monday's close of 99.98 cents, to its lowest level in two-and-a-half months. It closed Tuesday's session at 98.78 cents, down 1.20. Lower interest rates tend to diminish the allure of a country's currency.

The loonie has tumbled 11 per cent from last month's peak as a growing number of Canadian economic reports have highlighted a slowdown in exports and consumer spending.

“Overall sentiment certainly seems to have changed over the last few weeks, moving against the Canadian dollar,” said Camilla Sutton, currency strategist at Bank of Nova Scotia. She sees the loonie staying below parity for the rest of this month before appreciating again in the first quarter.

Videos

Loonie correction

Scotia Capital's Camilla Sutton looks into the market reaction to the Bank of Canada's rate cut decision

What the interest rate cut means

Economist Patricia Croft discusses the Bank of Canada's interest-rate cut on CTV's Canada AM

Several factors have influenced the central bank's views since its last policy meeting in October. Inflation has drifted lower, the Canadian dollar spiked, credit has tightened and the U.S. housing market has deteriorated.

“The bank judges that there has been a shift to the downside in the balance of risks around its October projection for inflation through 2009,” the bank said. “In light of this shift, the bank has decided to lower the target for the overnight rate.”

Traders betting in futures markets are pricing in an 80-per-cent chance of a 25 basis-point rate cut in the first quarter, and are fully pricing in a second such cut in the second quarter of next year, according to Ideaglobal.

“We expect this to continue weighing on the Canadian currency moving forward,” said David Powell, Ideaglobal's currency analyst in New York, in a note.

Most strategists still believe the Federal Reserve will be more aggressive in cutting rates than the Bank of Canada though -- and that may be limiting the loonie's decline. Almost half of traders now believe the Fed will cut 50 basis points at its meeting next week.

The Canadian dollar had soared as high as $1.10 in early November before settling around the parity mark – one of the most turbulent months for the currency in at least a decade – something the bank noted in today's statement.

“In the context of exceptional volatility in global financial markets, the Canadian dollar spiked well above parity with the U.S. dollar in November,” though it has recently moved to where the central bank had expected it would be, the bank noted.

Tuesday's statement gave little indication of whether interest rates will fall further. The central bank next meets on Jan. 22 in what will be Governor David Dodge's last decision before Mark Carney assumes the mantle.

“The door is open to further rate cuts although it is not a fait accompli at this particular point in time,” said Stewart Hall, market strategist at HSBC Securities (Canada).

Interest Rates Fall! More good news for Vancouver's Property Market! Central bank cuts interest rates as high loonie, credit turmoil raise fears

Pressure on the Central Canadian manufacturing sector from the high loonie has prompted the Bank of Canada to reduce rates.

This great for Vancouver's real estate market.

We don't have Central Canada's problems with the high loonie stemming from being integrated with US manufacturing. BC's & Vancouver's economy are some of the strongest in Canadeqa. Lower interest rates make real estate more affordable by giving buyers more spending power.

Keep you fingers crossed for more good news from the Bank of Canada!

HEATHER SCOFFIELD

Globe and Mail Update

December 4, 2007 at 10:20 AM EST

OTTAWA — The high Canadian dollar and turmoil in credit markets have prompted the Bank of Canada to cut its key interest rate by a quarter point.

Just months after the central bank indicated that it was on a course of hiking interest rates, it announced Tuesday it has changed direction, lowering its target rate to 4.25 per cent.

The move indicates that the central bank fears the Canadian economy is about to be sideswiped by a rapidly slowing U.S. economy and tighter credit conditions caused by financial market turmoil.

While Canada's economy is growing steadily right now, inflation is much softer than the central bank had projected earlier this fall. Total inflation was 2.4 per cent in October, and core inflation (which excludes the most volatile items) was 1.8 per cent, on a year-over-year basis.

Bank of Canada Governor David Dodge is seen leaving the central bank in Ottawa in this file photo. (Reuters)

Plus, the Canadian dollar unexpectedly spiked well above parity in early November, hurting exports and pushing down domestic prices, further taking the steam out of inflation, the bank said.

At the same time, financial markets around the world are struggling to come to terms with the U.S. sub-prime crisis, and have not been able to re-evaluate structured financial products, the central bank said in a statement.

Following the rate cut, the Canadian dollar fell more than a full cent, trading at 98.74 cents (U.S.) from Monday's close of 99.98 cents. Lower interest rates tend to diminish the allure of a country's currency,

The headwinds facing the Canadian economy have worsened since October and will likely drag on, pushing up bank funding costs, tightening credit conditions, and punishing the U.S. economy, the Bank of Canada noted.

“All of these factors considered, the bank judges that there has been a shift to the downside in the balance of risks around its October projection for inflation through 2009,” the bank's statement concludes. “In light of this shift, the bank has decided to lower the target for the overnight rate.”

A rate cut acts as an insurance policy, said Jacqui Douglas, economic strategist at TD Securities.

“While the Canadian economy is not yet showing any significant signs of strain, it's unlikely that it can keep growing at an above-potential rate for much longer, given the headwinds that it's encountering,” she wrote in a commentary.

It was no doubt a tough call for the central bank. Markets and economists have been divided on whether the central bank should stand pat or cut its key rate. The so-called shadow monetary policy council, run by the C.D. Howe Institute, recommended no cut, although the call was by no means unanimous.

“We think the Bank of Canada is at a difficult crossroads, and a mistake at this juncture could prove costly in the medium term,” foreign exchange analysts at the Bank of Nova Scotia said Tuesday.

Economists believe generally that if central banks wait too long to respond to a slowdown, they will be forced to make radical rate cuts to put the economy back on track.

Political pressure on the central bank to cut rates has been rising. The premiers of Ontario and Quebec have complained loudly that the high Canadian dollar is putting too much strain on their export-oriented economies.

Monday, organized labour and company executives in the manufacturing sector took the rare step of issuing a joint press release to urge the central bank to cut rates.

But at the same time, the Canadian economy is still in overdrive, the central bank says, and the job market is booming – posing risks for inflationary pressure.

In its statement, the Bank of Canada did not give many hints about whether it would continue to cut rates next year. Rather, it said it would take stock of the economy and financial market conditions again in January to make a new assessment.

Tuesday's announcement is the first time since April 2004 that the central bank has cut its key interest rate. After that time, the Bank of Canada gradually raised rates from a low point of 2 per cent, reaching all the way up to 4.50 per cent by July 2007. Rates have been on hold since July, until now.

With a file from Tavia Grant.

West at West Point Grey by MAC Real Estate

Click here for the website or email me for a price list and suite availability.

An attack from the Left on EcoDensity

EcoDensity won't cut house prices

Straight Issues By Pieta Woolley

Publish Date: November 29, 2007

Mayor Sam Sullivan and his NPA colleagues want to bring densification to more neighbourhoods. Pieta Woolley photo.

Real-estate agent Richard Morrison, who specialized in investment properties, thinks the city's EcoDensity initiative is a great way to keep property values from skyrocketing in Vancouver. He just sold a single-family home, worth nearly a million dollars, to an investor, who then tore it down and built eight 1,000-square-foot units that will sell for between $400,000 and $500,000.

"Way more density is the only way I see a softening of the market," Morrison told the Georgia Straight on November 27. "$450,000 is very affordable. Much more than buying an average home in that neighbourhood for $800,000."

The problem is that $450,000 is still double what the average Vancouver family can afford if the home doesn't have a secondary suite. With a median household income of about $56,200, according to Statistics Canada, most families max out at a $300,000 mortgage if they pay 30 percent of their incomes over a 25-year term.

According to www.mls.ca/ , $300,000 will still buy a two-bedroom condo in some parts of East Vancouver. It will also buy a three-bedroom townhouse or a small, single-family home in Maple Ridge–a long commute and the opposite of EcoDensity's goal.

Vancouver, you are my density

> For the 15 years between 1991 and 2006, the city grew by about 106,000 people.

> The city also grew by about 69,000 housing units.

> At 2.2 people per unit, that should have accommodated 151,800 more people, which could have created the conditions for a housing glut and falling housing prices.

> Instead, housing prices doubled over that time period.

> In 2006, there were 4,736 new housing units completed in Vancouver–the most in a single year since 1995.

> The vast majority of those were in eastern downtown and the East Side.

> Strathcona, Kitsilano, and Kerrisdale received the fewest number of new housing units.

> In 2007, 3,294 new condo units will have been completed in downtown alone.

Sources: City of Vancouver Housing Centre; Statistics Canada; Canada Mortgage and Housing Corporation

At City Hall on November 27, Vancouver's director of planning, Brent Toderian, told councillors that EcoDensity won't provide housing that meets average incomes. He said that the initiative is really about keeping the market softer than it would be with less density.

"I don't think we could affect [housing] supply to the point that prices would go down," said Toderian. "Especially at the mid level."

Toderian was presenting his department's draft charter and draft initial actions on EcoDensity. It's the mayor-driven "acknowledgement that high quality and strategically located density can make Vancouver more sustainable, livable and affordable", according to www.vancouver-ecodensity.ca/ .

EcoDensity has been billed as supplying more housing through densification–laneway homes, condos on top of stores, rezoning sprawling house-oriented neighbourhoods to accommodate low-rise apartments–and prices would drop into the affordable zone.

Vision Vancouver councillors Heather Deal and Tim Stevenson slammed Toderian's draft for leaving out true affordability. Deal said EcoDensity, in this report, is no different from green bonuses for developers. Stevenson wanted to know if his "ordinary kids with ordinary jobs" will be able to afford to live in the city.

"What is ordinary may change in the future," Toderian responded.

Vancouver's developers have, in fact, been densifying Vancouver swifter than the population has grown for 15 years. And, instead of prices dropping, they've soared since 1991.

Morrison told the Straight that the rush to buy condos in Coal Harbour and Yaletown is fuelled by investors, rather than folks seeking out a primary residence. He would like to know who owns the condos downtown, and who is living in them. No one seems to know.

Vancouver senior planner Rob Whitlock told the Straight his department plans to study that as part of a rental survey in 2008-09.

"Empty housing stock is very difficult to estimate," he said. "BC Stats has previously undertaken some analysis based on hydro usage, which indicated that four percent of all downtown apartments were identified as unoccupied in 2003, with eight to nine percent of condo apartments included in that number." In addition, he said, the 2001 census found that 2,600 downtown apartments were unoccupied.

Whitlock defended the idea that building more homes leads to a softer market, if not affordability. "If the number of units had not occurred, housing prices in the city generally would have escalated at an even faster rate," he said, echoing the EcoDensity draft report. "The more difficult objective for EcoDensity will be addressing housing costs for those with lower incomes, working poor, families, and others who are unable to compete in the current market."

As Deal pointed out, there's nothing in the report that requires affordability. EcoDensity has gone on to another round of public consultation, and will be back before council February 24, 2008.

A Link to Vancouver's EcoDensity Website - An Initiative Transforming the City

Click here for more info

New Gastown Development at 62 East Pender

Email me for details!

Mantra in Kitsilano Coming to Market Soon!

Click here for the website or email me at mike@mikestewart.ca for floor plans. Sales should begin for this project in January.

More on Mantra!

Mantra boasts a geothermal heating and air conditioning system. Unlike conventional heating and cooling systems which create heat by burning fuel or powering an electric element, this technology relies on the constant ground temperature the earth maintains throughout the year. In winter, the geothermal system transfers heat from the earth to an environmentally friendly fluid which flows through pipes installed under the earth’s surface and into the building into each suite. This heat is also used to heat the domestic hot water for the building. In summer, the system is reversed so that heat from each suite is absorbed by the earth thereby cooling each home. By using this technology, Mantra will save an estimated 52 tonnes of greenhouse gas emissions per year which is equivalent to planting 1,318 trees!*

While geothermal systems clearly help reduce the amount of greenhouse gas emissions in the air, the use of less energy also means you get the benefit of saving money! With a 650 sq.ft. home at Mantra, a geothermal heating and cooling system will be approximately a quarter of the cost of conventional systems.**

Mantra also uses a green roof system which beyond protecting the roof's membrane, this lush covering of plants improves air quality, provides sound insulation, and naturally shades and insulates the building which in turn helps save heating and cooling costs. Green roof systems also help to ease the burden on municipal stormwater systems as rain is absorbed by the plants rather than drained into our city pipes.

*Source: Tree Canada Foundation
**Source: Canada Geoexchange Colation

EcoDensity and Small Scale Development Projects on Vancouver's West Side

The City of Vancouver will launch their Ecodensity Initiative in the New Year. The intention is to increase density throughout Vancouver without disrupting the character and altering the scale of the City's neighbourhoods. A prime example of this is Art Cowie's Fee Simple Row House Demonstration Project (Click on article 122) where he is taking a low density mid-century bungalow on a large corner lot and building three Row Houses that have fee simple ownership.

Such projects are great for three reasons.

First, from an environmental standpoint increased density in Vancouver takes development pressure off green field lands throughout the region that both feed us and acts as the regions environmental sinks.

Increased density allows public transit projects such as the RAV line to operate efficiently and gets people out of their single occupant cars which are huge contributors to greenhouse gases.

Second, from a social perspective such projects offer both more housing options for area residents while creating housing for wider range of income groups.

One of the criticisms of the low density single family neighbourhood is that it only offers one housing option - large houses for families. Such neighbourhoods do not provide housing options for people throughout their life span. Young people who want to leave the family home only have basement suites to choose from. Single young professionals can rarely afford single family homes and are forced to leave the area. Empty Nesters who raised families up in the area also have to leave to find low maintenance housing to retire to.

Increased density gives all of these groups viable options to stay in their neighbourhoods. Projects such as the Fee Simple Row Houses use carriage houses to offer housing options for the young or for low income people. Busy young professionals get smaller more affordable row houses or townhouses that are new and require no renovations. Empty Nesters can downsize and stay in their neighbourhoods in low maintenance homes.

Third, such projects offer both area property owners and small scale developers a great opportunity to profit from increasing density.

The Fee Simple Row House Project is illustrative. A 3100sf house sitting on a 10,000sf lot is redeveloped into three 3000sf row houses for a total square footage of 9000sf. Factor in an estimated lot price of $1.3 million, building costs of $200/sf gives you a total cost of $3.1 million.

Such a development could conservatively sell for $500/sf, but will more realistically sell for around $600/sf. This gives a sales price of between $4.5 million and $5.4 million with costs of $3.1 million and a potential profit in the range of $1.4 million to $2.3 million.

For local homeowners options for staying in the neighbourhood and profiting from the changes are great. For example, a homeowner could strike a deal whereby they agree to sell their land at a discount in return for one of the finished row houses. Local homeowners could partner up with a developer and participate directly in the redevelopment process.

For further information about this process or to discuss the options and possibilities feel free to call me at 604-763-3136 or email me at mike@mikestewart.ca

A Direct Link to All City Development Proposals

This link here provides a a comprehensive list of every development proposal the City of Vancouver is dealing with.

More Good News for Western Canada's Economy!

Canada-U.S. income gap narrows

ROMA LUCIW

Globe and Mail Update

November 22, 2007 at 10:28 AM EST

Growth in Canadians' real income has outpaced the U.S. rate of expansion in the last six years, a sharp reversal of fortune from the 1990s that stems largely from the boom in resources.

Statistics Canada said Thursday that per capita real income grew by 15.5 per cent between 2000 and 2006, nearly two-thirds faster than the 9.1 per cent growth in the U.S. Real income growth is a way to measure changes in a person's purchasing power that takes into consideration returns from international investment and capital consumption.

“In three short years, real income relative to the United States returned toward levels not seen since the mid-1980s,” said Ryan Macdonald, the author of the report. “And much of this has been due to the much maligned resource economy.”

Prior to 2000, the resource economy was waning, commodity prices were weak and the loonie was depreciating. The earnings foreigners received from their investments in Canada were larger than those that Canadians earned from their foreign investments. As a result, real income growth failed to keep pace with real GDP growth.

Various economic indicators, including income measures, pointed to a long-term decline in the Canadian economy relative to its U.S. counterpart.

“All that has changed with the commodity boom that Canada experienced after 2000,” Mr. Macdonald said.

Since then, export prices have jumped relative to the prices of imports and the loonie has surged. Income flowing from abroad into Canada has increased dramatically, relative to payments abroad.

“At the same time, China and India emerged as important players in the world economy, contributing to a dramatic increase in real income growth in Canada relative to GDP growth,” Mr. Macdonald said.

Rising commodity prices, a skyrocketing loonie and falling prices for manufactured goods has improved Canada's terms of trade in the last four years, while U.S. measures of real income were far less impacted by these factors.

“The performance of the Canadian economy post 2000 has shown the advantages of having a diversified economy with a not-insignificant resource base,” Mr. Macdonald said. A diversified economy has some of the same advantages of a diversified stock portfolio, with some sectors declining gradually for long periods of time, only to have a sharp and sudden change in fortune.

Some reference articles and interesting websites on Inflation and its effect on investment

http://www.bankofcanada.ca/en/rates/investment.html

http://www.socialstudieshelp.com/Eco_Inflation.htm

Lower interest rates coupled with low inflation should put upward pressure on prices in Vancouver's real estate market.

Loonie nibbles away at inflation

TAVIA GRANT

Globe and Mail Update

November 20, 2007 at 10:30 AM EST

A strong dollar put the brakes on Canada's inflation rate last month as retailers began to cut prices, underscoring expectations that the Bank of Canada will cut interest rates.

Both core and overall consumer prices came in below expectations. The consumer price index slowed to a 2.4-per-cent pace in October, dipping from the 2.5-per-cent pace in September, Statistics Canada said Tuesday.

Core prices, which strip out the most volatile prices in the index, hit a 16-month low of 1.8 per cent amid discounts for buying and leasing cars. Car makers such as BMW Canada and Mercedes-Benz Canada started issuing rebates last month as the dollar traded above parity. Retailers such as Zellers and Canadian Tire also cut prices in October as Canadians increasingly shopped across the border.

“There will likely be more price damping in November's consumer price index and beyond, as the loonie's flight above parity caused a ‘social epidemic' of cross-border price comparisons and much less willingness to accept the large discrepancies between Canadian and U.S. prices,” said Michael Gregory, senior economist at BMO Capital Markets in a note.

A strong dollar put the brakes on Canada's inflation rate last month as retailers like book sellers began to cut prices. (Fernando Morales/The Globe and Mail)

Evidence of more price chopping came Tuesday, with Shoppers Drug Mart and Pharmaprix saying they dropped prices on greeting cards and books at all of their 1,040 stores nationwide.

“It's looking more likely that [Bank of Canada Governor] David Dodge's swan song will be rate cuts,” Mr. Gregory added.

Economists had expected the overall rate last month would be 2.8 per cent and the core rate 2 per cent.

“Inflation pressures in Canada have clearly come off the boil,” said Jacqui Douglas, economics strategist at TD Securities. “The odds are certainly tilted towards rate cuts in Canada, and possibly as soon as the next fixed-announcement date on Dec. 4.”

The cost of buying and leasing a car fell 2.4 per cent “the main factor in dampening the rise in consumer prices,” Statscan said, noting that manufacturers offered more discounts on 2007 models.

The strong dollar may be keeping a lid on import prices. Prices for fresh vegetables tumbled 14.6 per cent in October — the largest annual drop in 11 years, following a 9.2-per-cent decline in September.

Prices for computer equipment and supplies also cooled inflation.

Upward pressure on inflation still exists. Gasoline, mortgage interest costs and homeowners' replacement cost were the main sources of October's increase, Statscan said. Prices at the pump rose 13.5 per cent compared with the same month in 2006, mostly because of a drop in prices last year.

Mortgage interest cost inflation hit a 16-year high of 6.7 per cent, “more a reflection of increases in amounts borrowed because of higher new housing prices than of increases associated with the renewal of mortgage loans at higher rates,” the government agency said.

Higher property taxes also weighed on inflation, along with restaurant meals, which are rising amid higher minimum wages and rising dairy costs.

Among provinces, inflation remains high in Alberta, at 5 per cent. Higher gasoline prices also put pressure on the Atlantic provinces. In Quebec, Manitoba and B.C., however, annual consumer prices are running below 2 per cent.

The Canadian dollar was little changed Tuesday after sliding more than a cent a day earlier, trading at $1.0157 (U.S.). The U.S. dollar, meantime, slid to a fresh low against the euro and declined against the Swiss franc and the pound sterling, amid concern over the U.S. economy.

While the Canadian currency has weakened over the past week, it has still risen 18 per cent this year.

Lower Interest Rates will fuel to Vancouver's Real Estate Market.

Interest rate-cut chorus grows

TAVIA GRANT

Globe and Mail Update

November 16, 2007 at 2:49 PM EST

A growing number of economists now expect the Bank of Canada to cut interest rates in the coming months as a strong dollar takes a bite out of trade.

Weaker-than-expected reports on international trade and manufacturing over the past week show the Canadian economy likely withered in the third and fourth quarters, they say.

At the same time, the strong currency is reducing import prices and causing retailers to cut prices on their goods — putting a damper on inflation.

“We now expect that the Bank of Canada will need to cut its policy rate by 25 basis points on each of its next four decision dates through April,” said Ted Carmichael, chief economist at J.P. Morgan Securities Canada on Friday. That would bring the rate to 3.5 per cent from the current 4.5 per cent.

oking to get their hands on some cheap U.S. dollars to make their purchases, experts say

Previously, most economists had expected the central bank would stand pat for the foreseeable future. But opinion started to shift last week, with Merrill Lynch Canada saying the probability of a rate-cut in December had tilted to a greater than 50-per-cent chance.

Royal Bank of Canada and UBS AG were the latest to weigh in on Friday, predicting lower interest rates in the next months.

“Net trade, thanks in part to the past decline in U.S. dollar versus the Canadian dollar, is going to weigh heavily on Canadian gross domestic product growth in the second half of this year and beyond,” it said in a note.

“With that in mind, the BoC is laying the foundations for an eventual rate cut by steadily increasing the concern over the impact of Canadian dollar strength on output and inflation.”

UBS strategists, meantime, expect the central bank to reduce rates by 50 basis points next year.

Their predictions come in the same week that Bank of Canada deputy governor Paul Jenkins warned that if the dollar stays high, economic output and inflation would be “significantly” lower.

The Canadian dollar traded at $1.0301 Friday in the most volatile week the currency has had in at least a decade.

The central bank's next meeting is Dec. 4.

A Video of the Freesia's Condo Roof Gardens

The Freesia's Rooftop Garden Video at 1082 Seymour Street in Downtown Vancouver

For more information on 1082 Seymour Street or to see all active and sold listings at the Freesia, or to see floor plans for 1082 Seymour Street please go to www.freesiavancouver.com

Introducing www.freesiavancouver.com Your Best Source to New Listings, Past Sales, and Correct Building Information at The Freesia 1082 Seymour Street

I am proud to announce the launch of www.freesiavancouver.com, your best source for up to date listings, past sales, and building information for The Freesia 1082 Seymour.

We are still developing the site and adding features and contents so stay tuned!

How Assignments Work.

An "Assignment" is a term that is much bandied about in Vancouver's property market these days. This is a result of the large volume of suites sold by Developers prior to the construction of the suites (pre-sales) caused by the rise in Vancouver's urban property market. Investors and pre-sale buyers have been buying and selling i.e. "assigning" these suites before they are completed.

What is an Assignment?

An Assignment in the real estate context is when the rights under a contract are transferred from one party to another.

When you buy a pre-sale suite from a Developer, you sign a contract where you promise to pay a deposit by a set time and then the balance of the purchase price upon completion of the building. Under this same contract, the Developer promises to build you a suite by a set time.

It is also possible to assign a contract on a property which is built. I will describe this in another post.

How do Assignments Work?

If the Developer agrees (This is critical) you, as the buyer of the pre-sale, may then sell the rights under the contract for your pre-sale to another person.

When the buyer of the pre-sale sells and transfers the rights under the contract between the buyer and Developer is called an Assignment of Contract. Its called this because when you sell an Assignment you as the seller assign your rights under the contract with the Developer to the buyer of the Assignment.

The buyer of the Assignment (henceforth the Assignee) reimburse the seller of the Assignment (Assignor) any deposits the Assignor has with the developer. The Assignee then gives the Assignor the profit (or 'lift") they agree on. When and how this "lift" is paid is completely negotiable.

How they REALLY work!

This all may sounds quite straightforward and easy (if my explanation doesn't make sense call me and I can explain). In practice Assignments are not.

The Developer has to agree to the Assignment for a legal transfer to occur. In many cases the Developer may even require you get their permission to even advertise your suite. Developers strictly control how assignments are marketed and sold and have all the documents required to assign your suite. Most important of these is the actual contract you will need to transfer ownership.

A good relationship with the Developer is key in selling an Assignment as the Developer is under no obligation to consent to an assignment. A bad relationship with the Developer can result in expensive delays at best and your inability to sell your pre-sale at worst.

A strong grasp of contracts is also very important in either buying or selling Assignments. When buying an assignment it is critical that the contract contains subjects and clauses that ensure the buyer receives all of the documentation on the Assignment as well as an escape hatch if it turns out the documentation is not available or not satisfactory.

Strong negotiating skills are also a must to get the best deal when buying or selling Assignments. All of the variables, vagaries, and details inherent in Assignments are all critical to getting you the best deal possible. Don't leave any detail out or once again you can be out of pocket huge amounts of money or face possible legal action.

I hope this post sheds light on this topic. Feel free to post your comments or drop me a line if you have any questions.

Unemployment rates by province and city

Canadian Press

OTTAWA — Statistics Canada said Friday that the national unemployment rate was 6.2 per cent in January. Here's what happened provincially (previous month in brackets):

• Newfoundland 15.4 (13.8)

• Prince Edward Island 10.7 (12.4)

• Nova Scotia 7.8 (7.3)

• New Brunswick 8.1 (8.5)

• Quebec 7.7 (7.5)

• Ontario 6.4 (6.1)

• Manitoba 4.6 (4.1)

• Saskatchewan 4.1 (4.0)

• Alberta 3.3 (3.3)

• British Columbia 4.3 (5.2)

Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities but cautions the figures may fluctuate widely because they are based on small statistical samples. (Previous month in brackets.):

• St. John's, N.L. 7.7 (7.5)

• Halifax 4.4 (4.6)

• Saint John, N.B. 5.9 (5.6)

• Saguenay, Que. 9.4 (8.9)

• Quebec 5.8 (6.0)

• Trois-Rivieres, Que. 5.3 (4.9))

• Sherbrooke, Que. 7.4 (7.5)

• Montreal 7.5 (7.6)

• Gatineau, Que. 6.3 (6.3)

• Ottawa 5.6 (5.5)

• Kingston, Ont. 5.1 (5.2)

• Toronto 6.6 (6.6)

• Hamilton 6.4 (6.1)

• Kitchener, Ont. 5.7 (5.4)

• London, Ont. 6.1 (6.2)

• Oshawa, Ont. 6.5 (6.7)

• St. Catharines-Niagara, Ont. 6.3 (6.3)

• Sudbury, Ont. 5.9 (6.2)

• Thunder Bay, Ont. 6.6 (6.7)

• Windsor, Ont. 9.7 (9.0)

• Winnipeg 5.1 (4.8)

• Regina 4.3 (4.4)

• Saskatoon 3.4 (3.3)

• Calgary 2.6 (2.6)

• Edmonton 3.8 (3.7)

• Abbotsford, B.C. 4.2 (4.4)

• Vancouver 4.8 (4.7)

• Victoria 3.2 (3.6)

For More Raw Data Check out the link below -

http://www.statcan.ca/english/Subjects/Labour/LFS/lfs-en.htm

Red-hot job market raises eyebrows

TAVIA GRANT

Globe and Mail Update

Canadian companies continue to hire workers at a surprisingly rapid pace, driven by strong labour demand in the country's westernmost provinces, Statistics Canada said Friday.

The latest jobs report, however, further illustrates the stark contrast between employment growth and Canadian economic growth, which has been stuck in the doldrums in recent months.

The Canadian economy added 88,900 jobs in January and for the second month in a row the labour market far exceeded forecasts. Economists had expected just 13,000 new jobs last month, after the economy added a revised 52,500 positions in December alone. The number of employed Canadians now sits at a record high, Statscan said.

“Jobs are on fire while GDP growth is on ice,” said Douglas Porter, deputy chief economist at the Bank of Montreal. Still, “the really good news for the Bank of Canada is that the economy is essentially at full employment and yet wage growth is if anything moderating.”

He doesn't expect the central bank to cut interest rates and sees the next move as a hike, some time next year.

The currency markets seemed to share that view Friday as the Canadian dollar sailed past 85 cents (U.S.) on the strength of jobs numbers and the reduced odds that interest rates will be cut.

Canadian companies have been hiring over the past year amid buoyant Western economies, a robust housing market and strong consumer spending. More evidence of that came Friday, with The Home Depot Canada saying it plans to add more than 7,000 part-time, seasonal and full-time people for its busy spring period.

But, despite the number of jobs added, January's jobless rate rose a notch to 6.2 per cent as more people looked for work, today's report showed.

Looking at the provinces, employment rose by about 32,000 in British Columbia and by 24,000 in Alberta, sending their employment rates to record highs in January, Statscan said. Manitoba and Saskatchewan also posted record employment rates.

January's growth was equally split between full-time and part-time positions.

Most job gains over the past year have been full-time, though in recent months that's shifting to part-time work.

Among industries, gains came mostly from four industries: information, culture and recreation; professional, scientific and technical services; accommodation and food services as well as natural resources.

The manufacturing sector, which has shed hundreds of thousands of jobs in recent years, was unchanged in January as weakness in Ontario was offset by gains in Alberta and Manitoba.

In January, the share of the working-age population who were employed across Canada hit a record 63.4 per cent.

Housing starts strong in January

OTTAWA, Feb. 8 /CNW Telbec/ - The seasonally adjusted annual rate(1) ofhousing starts was 249,300 units in January, up from 212,600 units in

December, according to Canada Mortgage and Housing Corporation (CMHC).
   "Historically low mortgage rates, solid employment and income growth, and
a high level of consumer confidence continue to support residential
construction activity," said Bob Dugan, Chief Economist at CMHC's Market
Analysis Centre. "The volatile multiples segment bounced back in January,
accounting for most of the growth this month. Although housing starts are
expected to ease to 209,500 units in 2007, they will remain above the
200,000 mark for the sixth consecutive year."
   January's seasonally adjusted annual rate of urban starts of
216,300 units was up 19.2 per cent from December. Urban multiples surged
31.4 per cent to 124,300 units in January, while singles jumped 5.9 per cent
to 92,000 units.
   Urban starts in January rebounded in all regions, with urban multiple
starts growing at a double-digit pace. Urban singles starts were up overall,
but declined in Quebec and British Columbia. The Atlantic region experienced
the largest percentage increase in urban starts at 36.2 per cent
   Rural starts in January were estimated at a seasonally adjusted annual
rate of 33,000 units.
   Compared to January 2006, actual starts in both rural and urban areas
increased an estimated 12.2 per cent in January 2007 while actual starts in
urban areas only were up an estimated 11.9 per cent. Actual single starts in
urban areas were 14.3 per cent lower in January 2007 than they were a year
earlier, with all regions showing a decline. Actual urban multiple starts in
January 2007 were up 37.7 per cent over January 2006.

   Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for more than 60 years. CMHC is committed to helping Canadians
access a wide choice of quality, affordable homes, while making vibrant,
healthy communities and cities a reality across the country. For more
information, visit www.cmhc.ca or call 1-800-668-2642.

   <<
   ----------------------------------
   (1) All starts figures in this release, other than actual starts, are
       seasonally adjusted annual rates (SAAR) - that is, monthly figures
       adjusted to remove normal seasonal variation and multiplied by 12 to
       reflect annual levels.

   (Ce document existe également en français)


                    Housing Starts, Actual and SAAR(*)
   ------------------------------------------------------------------------
   ------------------------------------------------------------------------
                                     Actual                    SAAR
                             ----------------------------------------------
                             January      January     December      January
                                2006         2007         2006         2007
   ------------------------------------------------------------------------
                               Final  Preliminary        Final  Preliminary
   ------------------------------------------------------------------------
   Canada, all areas          13,379       15,009      212,600      249,300
     Canada, rural
      areas                    1,275        1,465       31,100       33,000
     Canada, urban
      centres(xx)             12,104       13,544      181,500      216,300
       Canada, singles,
        urban centres          6,002        5,143       86,900       92,000
       Canada, multiples,
        urban centres          6,102        8,401       94,600      124,300

       Atlantic region,
        urban centres            548          495        6,900        9,400
       Quebec, urban
        centres                2,237        2,391       40,200       42,200
       Ontario, urban
        centres                4,538        4,438       61,100       76,700
       Prairie region,
        urban centres          2,624        3,609       43,400       52,700
       British Columbia,
        urban centres          2,157        2,611       29,900       35,300
   -------------------------------------------------------------------------



   Source: CMHC
   (*)  Seasonally adjusted annual rates
   (xx) Urban centres with a population of 10,000 persons and over.
   Detailed data available upon request.