Source: Manitoba Chambers of Commerce

Manitoba’s housing affordability improved in the third quarter of 2010 and housing resales picked up in September and October, swiftly turning the page on a particularly weak summer period, according to the latest Housing Trends and Affordability report released today by RBC Economics Research.

“Any concerns that housing demand in Manitoba would slip into a slump dissipated in recent months as homebuyers took advantage of fairly attractive affordability, which improved for all housing types in the third quarter,” said Robert Hogue, senior economist, RBC. “Lower mortgage rates were particularly helpful in bringing down homeownership costs in the province, although some price declines, particularly for two-storey homes, also contributed.”

According to the RBC report, third quarter measures fell between 0.9 and 2.3 percentage points, reversing one-half to three-quarters of the increase that occurred since spring of 2009. Manitoba is one of two provinces where the measures for all housing types are currently below long-term averages. This will be a supportive factor for housing demand going forward.

The RBC Housing Affordability Measures for Manitoba, which capture the province’s proportion of pre-tax household income needed to service the costs of owning a home, decreased among all housing types in the third quarter of 2010 (a decline in measure means homes are more affordable). The measure for the benchmark detached bungalow moved down by 1.4 percentage points to 34.7 per cent, the standard condominium decreased slightly to 20.7 per cent (down 0.9 of a percentage point) and the standard two-storey home moved down to 37.1 per cent (a decrease of 2.3 percentage points).

All provinces saw improvements in affordability in the third quarter, particularly in British Columbia where elevated property values amplified the effect of the decline in mortgage rates on monthly mortgage charges. Ontario also experienced some notable drops in homeownership costs, pushing down the RBC Measures below their long-term average in the province for bungalows and condominiums. Alberta and Manitoba are the only two provinces where the RBC Measures stand below their long-term average in all housing categories, indicating little stress in these markets.

RBC’s Housing Affordability Measure for a detached bungalow in Canada’s largest cities is as follows: Vancouver 68.8 per cent (down 5.4 percentage points from the last quarter), Toronto 47.2 per cent (down 3.0 percentage points), Montreal 41.7 per cent (down 1.3 percentage points), Ottawa 38.2 per cent (down 2.9 percentage points), Calgary 37.1 per cent (down 2.0 percentage points) and Edmonton 32.7 per cent (down 2.0 percentage points).

The RBC Housing Trends and Affordability Measure, which has been compiled since 1985, is based on the costs of owning a detached bungalow, a reasonable property benchmark for the housing market in Canada. Alternative housing types are also presented including a standard two-storey home and a standard condominium. The higher the reading, the more costly it is to afford a home. For example, an affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household’s monthly pre-tax income.

Highlights from across Canada:

British Columbia: Lower home prices and declining mortgage rates brought the B.C. housing market some welcomed reprieve in the third quarter from the significant deterioration in affordability recorded since the middle of 2009. Amid much cooler resale activity through the spring and summer and greater availability of properties for sale, home prices either fell, particularly for bungalows, or remained stable in the case of condominium apartments. The RBC Housing Affordability Measures for B.C. dropped between 1.8 and 5.0 percentage points, representing the largest declines since the first quarter of 2009; however, all remained significantly above long-term averages. Poor affordability is likely to continue to weigh on housing demand in the province in the period ahead.

Alberta: Despite recording substantial affordability improvements since early 2008, housing demand in Alberta is still a shadow of its former self from just a few years ago and there are few signs that it is picking up meaningfully. The RBC Measures eased between 0.8 and 1.8 percentage points, more than reversing modest rises in the second quarter. Homeownership is among the most affordable in Canada both in absolute terms and relative to historical averages. RBC notes such a high degree of affordability bodes well for a strengthening housing demand once the provincial job market sustains more substantial gains.

Saskatchewan: Saskatchewan home resales rebounded since August and reversed most of their slide in the first half of this year; however, the earlier softening of activity had a lingering effect on home prices which fell across all housing types relative to the second quarter. RBC’s Affordability Measures dropped between 1.8 and 2.2 percentage points, the most since early 2009 but still modestly above their long-term average, suggesting that current market conditions might be stretching Saskatchewan homebuyers’ budgets to a degree.

Ontario: After four consecutive quarterly increases, the cost of homeownership declined in Ontario in the third quarter thanks to lower mortgage rates and some softening in property values. RBC’s Measures fell between 1.3 and 2.4 percentage points, fully reversing the increase in the second quarter. Existing home sales ended their precipitous slide confirming RBC’s earlier expectation that the slowdown in activity through the spring and summer largely reflected various transitory factors – including the HST and changes in mortgage lending rules – that spurred demand at the start of this year. With the market now back in balance, the recent softness in home prices will likely prove to be a healthy recalibrating following a strong rally.

Quebec: The Quebec housing market is making its way towards more stable activity levels after plummeting to six-year lows at the end of 2008 and then surging to all-time highs at the start of 2010. Supporting this trend in the near term is an improvement in affordability in the third quarter. Following four consecutive increases, the RBC Measures for the province fell 1.4 to 1.8 percentage points depending on the housing type, but still remain close to the pre-downturn peaks and above their long-term average, which will likely restrain growth in demand in the period ahead.

Atlantic Canada: The East Coast housing market picked up some steam early this fall following a marked cooling in activity in the spring when resales fell back to the lows reached at the end of 2008. Modest price declines and a drop in mortgage rates contributed to lower third quarter homeownership costs with RBC’s Measures moving down between 1.0 and 1.5 percentage points in the third quarter and returning roughly to the levels experienced in mid- to late-2009. Overall, housing affordability remains attractive in Atlantic Canada.

The full RBC Housing Affordability report is available online, as of 8 a.m. ET today (November 29, 2010) at www.rbc.com/economics/market/pdf/house.pdf.

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The CHBA has released its September 2010 – Canadian Housing Industry Economic Update.

Some of the highlights…

• Financial market worries have caused a search for safe-haven investments, pushing up U.S. and Canadian government bond prices.
• Downward pressure on government bond yields is pulling down residential mortgate rates.
• U.S. economy is seeing a temporary loss of momentum.
• Economic indicators suggest a true U.S. recovery in 2011.
• Credit availability is changing in the US as senior loan officers are beginning to ease standards on loans. Canada has not been held back by credit availability as much as the U.S.
• Canada’s economy is currently growing at roughly double the rate of the U.S. economy.
• Adult employment is on a sharp uptrend and is a key determinant of housing market health.
• It is believed that the July 1st implementation of the HST has affected the timing of purchases, adding impetus to the timing of these purchases.
• New house prices do not indicate a housing market downturn. Compared to the same month a year ago, the new house price index is up by 3.3%.
• June residential permit approvals were up 2.0% from the month before and 35% from June of 2009.
• Canada’s position as an international safe haven for investment is attracting foreign buyers to the condo market.

To read the full CHBA Canadian Housing Industry Economic Update, please click here…

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Photo courtesy of Cree

We are always on the prowl for news that can help save homeowners money.

USA Today Article: August 10, 2010

As competition for LED lighting expands, new Habitat for Humanity homes for the low-income are benefiting. One such house broke ground this weekend in Durham, N.C., that will have only LED fixtures.

Cree, a Durham-based manufacturer of LED lighting, is sponsoring the home’s construction to showcase its energy-efficient lighting, which it estimates will save $250 worth of electricity each year. The house, expected to be completed in October 2010, is part of Cree’s $1.5 million pledge to provide its CR6 LED downlights for the kitchens of all new Habitat homes built in the USA in the next three years.

This LED (light emitting diode) donation reflects increased competition to win market share as incandescents begin their Congress-mandated phaseout in 2012 with the 100-watt bulb, followed by the 75-watt in 2013 and the 60-watt and 40-watt in 2014.

This month, Osram Sylvania introduced a dimmable, mercury-free LED replacement for the traditional 60 watt incandescent. The company says its A-Line 12 watt LED offers up to 80% energy savings and lasts 25,000 hours, 12 times longer than traditional light bulbs.

In May, Royal Philips Electronics announced it had an LED replacement for the 60-watt incandescent, which is the biggest-selling bulb in the USA. Its 12-watt Endura light bulb, also expected to use 80% less energy, will be available to consumers later this year.

Home Depot began selling a 9-watt, $20 LED bulb in May that replaces the 40 watt incandescent. It ECOSMART bulb is mercury-free, recyclable and dimmable.

Similarly, General Electric also has a new 9-watt LED replacement for the 40-watt incandescent that’s expected to be available later this year for $40 to $50.

In June, IKEA’s announced that it will stop selling incandescent light bulbs by year’s end at its 48 U.S. and Canadian stores.

Article part of the Green House column of  USA Today.

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Financial considerations and Americans’ evolving lifestyles are driving preferences in home design.

According to the latest Home Design Trends Survey by the American Institute of Architects (AIA), houses and lots in the United States are continuing to shrink, as is homeowners’ desire for high-end features and amenities. What’s growing is a wish for greater accessibility within the home, which goes hand in hand with an increased interest in more open floor plans and layouts that allow flexibility to accommodate Americans’ evolving lifestyles.

While it’s typical for new home sizes to decrease during recessions, the AIA notes that the current downward trend in lot sizes, square footage, and interior volumes began before the current recession and housing bust. Interestingly, signs indicate that new home sizes are continuing to decline even as the market begins recovering. Fifty-seven percent of the architects polled for the survey reported decreases in home sizes, compared with 21 percent who reported increases. Driving this trend for smaller homes are concerns about rising energy costs and the rocky economy, combined with a desire for reduced property maintenance.

Read the full article here in the Residential Architects website…

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An article in today’s Financial Post dispels the fears of a “housing bubble” in Canada.

Canada won’t fall victim to foreclosure wave: Report

John Shmuel, Financial Post  Published: Friday, May 28, 2010

Canada’s housing market won’t fall victim to the type of foreclosure wave the United States saw, according to a new report by debt-rating firm DBRS Ltd. 

DBRS said in the report that Canada will continue to fare well in comparison with its neighbour to the south when the Canadian housing market corrects itself and interest rates rise. That’s because lending practices here are much more sound than in the U.S. 

“The likelihood of us having the kind of situation they had in the U.S. is extremely low,” said Jerry Marriot, managing director of structured finance at DBRS. “It’s a combination of the lending practices prior to the peak in 2007 – they were more restrained, so there were better underwriting practices in Canada. We also think there are a number of factors in the Canadian market which have lent themselves to more prudent lending.” 

That includes less aggressive lenders in the market, as well as systems designed to keep people paying their mortgages.

Read more: http://www.financialpost.com/news-sectors/economy/story.html?id=3081970#ixzz0pF3iEXd0

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Northwest architecture is inspired by nature and necessity.

It is not hard to identify the nature inspiration when surrounded by towering trees, rugged landscape and amazing vistas. The Northwest response to stunning scenery is to create house designs that are in harmony with the environment. Houses are often nestled into a sloped site and the lines of Northwest house plans tend to echo the strong elements of their environment – strong vertical lines in harmony with majestic fir trees, horizontal lines to evoke the feelings of rock ledges, roof undulations to blend with the peaks on the horizon. A Northwest home design is usually clean in design, lacking excessive exterior details. When architectural accents are desired, they are usually achieved with the use of natural timber and rock to further blend the house with its surroundings. A generous use of windows creates a seamless transition between indoors and out and brings light into the interior.

Beautiful Drummond House Plans - Northwest Collection - Cottage Plan #2957

So what about the necessity side of design in the Northwest? The Northwest climate is well-known for the amazing amounts of precipitation so protection of residents and the very building itself is a must.  The Northwest design accommodates this by implementing medium to low sloping rooflines with generous overhangs. To take this a step further, you will notice that many Northwest designs include a covered grilling area for year-round trips to the BBQ. Additional outdoor living spaces are achieved by adding generous decks, often combining open and covered areas for year-round enjoyment.

Charming Northwest Home Design by Drummond House Plans - no. 3832

A Northwest house has wonderful flow and functional interiors with modern amenities. Modern minimalist interior design is quite common as it helps with the laid-back lifestyle so common on the Coast. These designs are not limited to the enjoyment of “Coasties”. Although originating in the northwest, these houses can be built as a primary home or vacation home in any region of the country that has a natural vista or stunning cityscape to be enjoyed.  

Very popular Drummond Design - Carriage Plan no. 3935

Drummond House Plans has a beautiful and extensive collection of Northwest house plans available for your family’s comfort. We also have a number of designs being worked on so you should visit the site regularly or sign up for new design notifications.

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Are you considering renovating your home?

Come to the Renos Done Right Seminars and Trade Show on September 26, 2009 in Nanaimo. This one-day, free admission show is hosted by the Canadian Home Builders Association, Central Vancouver Island. While you take in this informative show, make sure you stop in to visit Drummond House Plans’ BC Distributors, Richard & Vivian Martin who will be available in booth #29.

For more details on the exhibitors and speakers topics “From how to be green to saving some green and everything in between”, please visit the CHBA-CVI website.

See you there!

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Dear future homeowners, home builders, home renovation builders,

Come and meet Drummond House Plans‘ residential design expert Mr. Richard Martin, at these 2009 Home Shows in British Colombia, Canada:

March 27-29: Comox Valley Spring Home Expo, Sports Center

April 3-5: Tri-City Spring Home Expo, Port Moody Arena

April 17-19: Victoria Spring Home Expo, Juan de Fuca Recreation Center

April 24-26: Langley Spring Home Expo, George Preston Recreation Center

May 1-3: Campbell River Spring Home Expo, Strathcona Gardens Arena

May 8-10: Powell River Spring Expo, Recreation Complex Arena

Drummond House Plans - Home Expo

Drummond House Plans will also be attending these great home shows in New-Brunswick, Canada:

March 20-22: The 2009 Moncton Home Show, Moncton Coliseum. Come and meet Mr. Denis Cormier from the new Drummond House Plan Agency in Moncton.

April 24-26: Salon de l’Habitation Richelieu d’Edmundston, au Palladium.  Come and meet Mr. Daniel Lepage and Mrs. Annie Lajoie from our new Drummond House Plan Agency in Edmundston.

We’ll see you there!  And until then… take a minute to have a look at our new website: www.drummondhouseplans.com and give us your comments!  Take advantage of our free house plan search!  Send us your criterias, and we’ll get back to you with a plan selection that will meet your requirements!  Send your request to: searchrequest@drummondhouseplans.com and if you place your order before April 30, 2009, you’ll get 20% discount on your plan purchase!

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Drummond House Plans’ philosophy is that beautiful vacation designs, cabin plans and top quality house plans can be created for small budget, and still be so charming! And, that’s exactly what you’ll find in our home design collection.  Drummond Plans created hundreds of great, affordable home designs available in many sizes and styles such as

www.DrummondHousePlans.com no.2939

Country style and Traditional, and very cool house plans for baby boomers and first-home buyers. Browse our top quality, budget-conscious and affordable house plans collection if you are searching for a primary affordable house and review our 4-Season Vacation House Plans on a Budget collection for if you are looking to build a secondary home.

Sparkling your imagination is one of the first steps before you begin building!

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In these times where good news may sometimes be a rare thing to hear, I would like to take this opportunity to share with you some very exciting news regarding the Drummond House Plans’ customer service team.

Last week, at the International Builder Show  in Las Vegas,  Drummond House Plans was honoured by receiving the Best Customer Service award among all the designers represented by Hanley Wood / House Plan Division.

Drummond House Plans stood out amongst many other very popular & important architectural firms in the US, such as House Plan Gallery, Don Gardner, Sater Designs, Frank Betz Associates, Nelson Design Group, and many others and for this, we are particularly proud!

In this industry where competition is of the utmost importance, top quality house plans, professionalism, efficiency and prompt responses to our publishers & customers, make the difference between winning or losing a sale!

Congratulations to our team for a job well done, I am very proud of us all!

And a big thank you to Hanley-wood for the award & for doing a terrific job at promoting our designs! 

So now, Hanley-wood, how can we get more exposures? 

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