Housing market

[adam]

And of course someone reading this article living in Stoney Creek thinks the data pertains to them. And someone living in Westdale thinks it pertains to them... While these different areas are probably doing disparate things. Ditto for Mountain vs Lower City, etc.

[SteelTown]

Six-fold spike in new home starts for city

February 10, 2010
Mark McNeil
The Hamilton Spectator
http://www.thespec.com/News/Business/article/719155

For the second month in a row, the Hamilton area has seen a major jump in new home construction.

Canada Mortgage and Housing Corp. says there were six times more housing starts in January of this year compared with the same month in 2009.

A total of 458 units were started in January in the Hamilton-Burlington-Grimsby area compared with only 75 a year ago.

Sarah Fong, a housing market analyst with CMHC, says most of the units are explained by a highrise condo project in Burlington and a new rental building on Hamilton Mountain.

But single-detached house construction was strong as well in Hamilton-Burlington-Grimsby, with 93 new houses started last month compared with 37 in January 2009.

Burlington was particularly strong, with a total of 229 units of all types last month compared with only one in January 2009.

Fong said favourable weather for construction and low interest rates helped propel the high numbers of housing starts.

Bernice Flegg, president of the Hamilton-Halton Home Builders' Association, said she also believes the Harmonized Sales Tax, set to go into effect July 1, is another factor.

She thinks it's causing homebuyers to jump into the market sooner, in a bid to avoid the tax.

However, the 8 per cent portion of the HST will only be applied to new houses costing $400,000 or more when it takes effect.

The tax applies to the amount over $400,000. For example, a buyer of a $500,000 house would only pay the tax on $100,000.

[highwater]

Yippee! Let's re-inflate the bubble! What could possibly go wrong?

[realcity]

All Sprawl

[drpgq]

What's the rental building on Hamilton Mountain? Please tell me it isn't subsidized housing.

[Berklon]

Originally Posted by highwater

Yippee! Let's re-inflate the bubble! What could possibly go wrong?

Exactly.

This country is in a housing bubble and Hamilton isn't excluded. Things are going to get ugly soon.

[SteelTown]

"the Realtors Association of Hamilton Burlington reported the real estate market is booming, with March sales up 38 per cent over the same month last year and the average price of $335,633 up almost 21 per cent in the same period."

http://www.thespec.com/News/BreakingNews/article/749426

[Berklon]

The bubble keeps inflating.

There's no doubt that housing is overpriced in Hamilton.

[SteelTown]

Housing start in Hamilton increased 153.8% compared to March 09.

Housing start in Burlington decreased 54.9% compared to March 09.

http://www.marketwire.com/press-rele...ch-1145827.htm

[SteelTown]

Hamilton Starts Up 22 Per Cent in March

TORONTO, ONTARIO
Marketwire - April 12, 2010)
http://www.marketwire.com/press-rele...ch-1145827.htm

New home starts in the Hamilton Census Metropolitan Area (CMA) rose last month by 22 per cent due in part to favourable weather conditions for the construction market, according to preliminary starts data released by Canada Mortgage and Housing Corporation (CMHC) today. Total starts in the CMA reached the highest level for starts for the month of March since 2004. A higher number of single-detached and townhouse starts in Hamilton contributed significantly to the boost in total starts.

Total starts were also up for the first quarter of the year, with considerable gains in all home types. Rental and condominium apartment construction in particular boosted total starts during the quarter. Furthermore, the increase in starts occurred in all three markets of the CMA.

"There were a number of high-rise buildings started in Hamilton and Burlington during the first quarter of this year," said Sarah Fong, CMHC's Senior Market Analyst for Hamilton. ''The increased apartment construction is in line with plans for higher-density development in the area.'' added Fong.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/cm...t_hamilton.pdf

[SteelTown]

Area luxury home sales soar
Up 169 per cent over last year

April 26, 2010
The Canadian Press
http://www.thespec.com/Business%20News/article/758601

Re/Max says Hamilton  luxury home sales soared in the first quarter of 2010 as affluent purchasers moved to take advantage of favourable market conditions.

Sales of luxury homes in the Hamilton-Burlington market jumped 169 per cent in Hamilton-Burlington this year over the same period in 2009.

The real estate firm says nine out of the 13 markets, including Hamilton-Burlington,  it examined shattered records and set new all-time highs for first quarter activity in the upper end.

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.

The increase in the Toronto area was 263 per cent and it was 184 per cent in the Vancouver region, and 164 per cent in Edmonton.

Re/Max says an improved economy, increased personal wealth, immigration and foreign investment all contributed to the upswing in sales.

Greater Vancouver topped the entry-level price point for high-end homes at $2 million, followed by $1.5 million in Greater Toronto and Montreal.

Greater Vancouver also holds the title for the most expensive home sold through MLS in the first quarter — an 11,600 sq. ft. home changed hands for $10.06 million.

“With the return to economic growth, it’s expected that the number of high net worth individuals will begin to rebound, following two years of consecutive decline,” said Sylvain Dansereau, the executive vice-president of Re/Max Quebec.

“Recovery in the upper end has been nothing short of remarkable,” added Elton Ash, the regional vice-president for Re/Max in western Canada.

”There is no doubt that mindset has changed and confidence has returned. One only has to look at the percentage increases to see the current upward trajectory.”

[SteelTown]

Mountain real estate market continues strong recovery

News
Apr 29, 2010
http://www.hamiltonmountainnews.com/news/article/208806

March was a good month for Hamilton Mountain real estate, with sales for up 17 per cent from the same month last year.

There were minor declines in activity in the north-central and northeast areas of the Mountain, but the southwest has continued at a brisk pace with a 71 per cent increase in sales over last March and the southeast almost doubled last year’s numbers for that area, said Jeff Bonner, a sales representative with Jag Realty.

Property values have also continued to increase over most of the Mountain. Overall, there was a 15.4 per cent increase in average prices over the same month last year, said Bonner. The biggest gain was in the south-central area with a 23.9 per cent jump. The southwest was the next highest, at a 16 per cent rise over last March.

The only area to see a decrease in average prices for the month of March was the southeast district with a very minor dip of two per cent.

Looking at the first quarter as a whole, Mountain real estate is up 44 per cent in sales over the first quarter of 2009, and the average price of Mountain properties climbed 11 per cent, with all districts seeing increases ranging between 2.4 per cent and 13.8 per cent, said Bonner.

The average price for real estate on Hamilton Mountain at the end of March was $246,160.

While the numbers look quite good, these results do follow an exceptionally weak first quarter in 2009, when there was a decrease of 29 per cent in sales on the Mountain and a 2.7 per cent drop in average prices over 2008, said Bonner. Compared to the pre-recession first quarter of 2008, the first quarter of 2010 has seen a more modest increase of 2.2 per cent in sales activity and 9.2 per cent appreciation in average price.

“The real estate market has recovered from the recession and is continuing at full pace as expected,” said Bonner.

“Sellers in this market are cashing in on a number of positive market influences. The seasonal trend is back on track after the economic uncertainty of last year, buyers are acting quickly to beat some industry changes, interest rates are still attractively low, and market sentiment seems very upbeat.”

[SteelTown]

Hamilton housing starts surge

May 10, 2010
John Burman
http://www.thespec.com/Business%20News/article/766549

Hamilton led the charge in April for single family home construction in Hamilton, Burlington and Grimsby.

The Canada Mortgage and Housing Corporation says today preliminary figures show more than two-thirds of the homes started in April were single-detached homes, and most of them were in the City of Hamilton. There were no apartment starts during the month.

Sarah Fong, CMHC's senior market analyst for Hamilton and Brantford said in a statement  that while starts were up in Burlington, there were twice as many starts of semi-detached and townhouses combined than there were of single-detached starts.

Low-rise housing has slowly shifted toward semi-detached and townhouse construction in Burlington to make more effective use of land, she said.

"Starts grew by five per cent last month," said Fong.

"Although there continue to be fewer starts in built-up markets such as Burlington, over 150 new single-detached homes were started in Hamilton alone – the highest monthly figure in nearly two years."

There were 210 housing starts of all kinds in Hamilton last month, up from just 48 for the same month last year – an increase of 331 per cent.

In Burlington, the number of starts fell to 48 of all kinds last month compared to 210 in April last year, a 77 per cent decrease. Eighteen housing starts of all kinds in Grimsby last month amounted to a 500 per cent increase over just three in April 2009.

[drpgq]

Looks like we could easily increase the lot levy to even out with other municipalities.

[drpgq]

Well there you go. Personally I think we could boost it even more without much of an effect.

Developers fee freeze to cost city $9 million
May 11, 2010
Emma Reilly
Hamilton Spectator
A 12-month freeze on development charges will cost the city almost $9 million in lost revenue by the time it ends.

The freeze -- put in place last July to help ease the effects of the recession -- forced the city to postpone $3.5 million worth of infrastructure projects in 2009, including construction on Rymal Road, Regional Road 56 and Highland Road. It will also force the city to delay up to $6.5 million worth of projects in 2010.

"The longer we do this, the worse the city of Hamilton is going to be, " said Councillor Brad Clark.

Council voted yesterday to lift the freeze and raise the development fee to build a new house from $19,573 to $26,689, despite resistance from local home builders.

Bernice Flegg, president of the Hamilton-Halton Home Builders' Association, told council the economy wasn't yet strong enough to hike development charges.

Flegg also warned rising interest rates and the implementation of the harmonized sales tax will unsettle an industry already blindsided by the recession.

But Clark took aim at the home builders, arguing interest rates are at an all-time low and the HST won't apply to homes under $400,000, which includes most of the houses built in Hamilton.

"I'm a little bit frustrated by the Hamilton-Halton Home Builders' Association's position here, " he said. "I don't have any indicators before me showing the economy is getting worse."

Development charges are intended to cover the cost of new infrastructure -- such as roads and sewers -- that are needed to support new growth. If the fees don't cover enough of those costs, taxpayers are left to pick up the tab.

City staff reported yesterday building permits climbed 25 per cent in the first three months of 2010. Home sales in Hamilton and Burlington were also up 38 per cent over the same period last year.

[markbarbera]

In today's Spec:

Council stands by building fee hike
The Hamilton Spectator

(May 13, 2010)
Local homebuilders have lost the fight against rising development charges.

Council last night endorsed lifting the year-long development fee freeze that will leave an $8.7 million dent in the city's revenues by the time it ends.

Residential development fees, currently frozen at just over $19,500, are to increase to around $26,600 on July 6.

Developers had lobbied the city to implement half of the fee hike in July and wait until Jan. 1, 2011 to complete the increase. They argued a fragile economy, the incoming HST, and rising interest rates mean their businesses aren't yet ready to bear the total brunt of the hike.

Spokespeople for the local development industry were disappointed by council's decision, but not surprised. They believed the fix was in as they only found out about the move less than a week ago.

"We're supposed to have a relationship of inclusion, where we liaise between the municipality and ourselves when it comes to this kind of decision, but we were not given that opportunity," said Losani Homes CEO Fred Losani.

Losani and Douglas Duke, executive director of the Hamilton-Halton Home Builders Association, said the increase will lead to the delay of some projects and the loss of construction jobs this year.

"This has been a lightning-fast process," said Dukes. "I think something stinks."

Only Councillor Tom Jackson sided with the developers during the vote.

"I think there's still some fragility and volatility out there," he said.

"Just an easing of the transition before these development charges were implemented would be appreciated."

Developers had originally hoped to convince council to extend the development charge freeze, but ended up lobbying for a phase-in.

Losani said councillors don't appear to understand how development fees work. The city's position "is biasedly based on an inaccurate interpretation of what this fund is for."

He said development charges are intended to pay for growth-related infrastructure.

"For every home that is built tomorrow, the homebuyer pays the DC (development charge). Any growth that's required to accommodate that homebuyer, that's what that money is intended to work for," Losani said.

"It's not intended to upgrade a street that has, over the past 20 years, become incapable of handling the population that was added over the past 20 years -- that becomes the responsibility of every taxpayer."

Losani said housing starts are up this year over 2009 but, compared to 2008, they remain down 12 per cent. He said this year's home building surge is artificially driven by the coming harmonized sales tax, the threat of increases in interest rates and commodity pricing. Losani noted lumber pricing is 75 per cent higher than current contract pricing.

City staff told council the fee freeze led to a loss of almost $9 million in revenue. To prevent a budget hit, the city delayed projects adding up to the same amount.

Finance chief Rob Rossini said the city knows the purpose of development charges, which is to pay for servicing new development. Upgrades to existing roads aren't paid for by development charges, he said.

Rossini said freezing the development charges for a year was enough.

"Are things perfect today? No, but other municipalities have moved ahead and we can't not collect full-cost recovery for long periods of time."

[matt602]

About damn time.

[markbarbera]

Originally Posted by matt602

About damn time.

...and a long time coming. Some might say too long.

[SteelTown]

Hamilton and Brantford Housing Starts to Rise in 2010
http://www.marketwire.com/press-rele...10-1263619.htm

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - New home starts will increase moderately in 2010 as compared to a year ago, according to the Spring Housing Market Outlook report for the Hamilton and Brantford Census Metropolitan Areas (CMAs) released today by CMHC. Reports are also available for all major metropolitan centres across the country.

Highlights of the report include:

•MLS® sales will reach 13,600 units in the Hamilton Census Metropolitan Area (CMA) and 1,950 in the Brantford CMA. Rising mortgage rates will slow down the pace of sales and prices through the end of 2010 and into 2011. The average price for an existing home will increase to $315,000 and $229,000 in Hamilton and Brantford, respectively.

•Starts will reach close to 3,000 units in the Hamilton CMA and just over 400 in the Brantford CMA. Land availability and higher prices for new homes will shift some building activity towards townhouses and apartments in Hamilton. In Brantford, the escalating prices for new single-detached homes may shift housing demand towards the relatively less expensive resale market.

•Continuing investments into growing sectors in the Hamilton CMA will put more people into jobs and reduce the unemployment rate to 8.1 per cent in 2010. In the Brantford CMA, employment will hold steady through 2010 before improving in 2011.

"Both the new home and resale markets will recover moderately this year," said Sarah Fong, CMHC's Senior Market Analyst for Hamilton and Brantford. "Construction in the new home market will shift towards higher density, lower-priced homes such as townhouses and will continue to face competition from the well-supplied resale market." added Fong.

"Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011," said Ted Tsiakopoulos, CMHC's Ontario regional economist "This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes," added Tsiakopoulos.

[SteelTown]

Hamilton housing starts up but numbers down nationally

June 09, 2010
The Canadian Press
TORONTO
http://www.thespec.com/News/Business/article/784780

Hamilton's new home construction activity bucked a national drop in May.

Canada Mortgage and Housing Corp. reported yesterday the country's annual rate of housing starts fell last month, pegging the rate at 189,100 units in May, down from a revised 201,800 in April.

But the Grimsby-Hamilton-Burlington region posted 284 starts in May, up 134 per cent from 121 in the same month last year. Year-to-date figures show 1,569 starts, up 103 per cent from 771 for the first part of 2009.

Douglas Porter, deputy chief economist at the Bank of Montreal, said May's national figures were below expectations but "hardly a shock." Economists have widely predicted a slowdown in the white-hot housing market in the second half of 2010.

Many consumers pushed sales through to get into the market ahead of tougher mortgage rules in April, expected interest rate hikes and the July 1 implementation of the HST in Ontario and British Columbia.