Urban housing starts increased during the month of June, according to preliminary data released by Canada Mortgage and Housing Corporation (CMHC). June’s housing starts totaled 232  throughout the St. John’s area versus 183 starts in June of 2009. There were  53 additional starts recorded outside the St. John’s area, for a total of  285 provincial urban starts compared to 230 last June. “The number of new homes started in June represents a significant increase compared to June 2009. Year-to-date starts are up 25 per cent within the St. John’s region,  with 822 starts recorded during the January to June period,” said Chris  Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Healthy economic and demographic trends have supported new home demand during the first half of 2010,” added Janes. In urban centres across Canada, total housing starts increased 31 per cent with 15,345 recorded in June compared to 11,686 during June of 2009. Throughout Atlantic Canada, there were 1,012 urban housing starts posted versus 904 the  previous June, an increase of 12 per cent.

Complete news release can be found here

ST. JOHN’S, January 11, 2010 – Urban housing starts posted consistent results during the month of December, according to preliminary released today by Canada Mortgage and Housing Corporation (CMHC). December’s housing starts totaled 201 throughout the St. John’s area versus 202 starts in December of 2008. An additional 22 starts were recorded in other urban areas across the province, for a total of 223 provincial starts compared to 226 the previous December. For 2009, urban housing starts totaled 1,703 in the St. John’s area and 2,022 provincially.

“The local residential construction industry remained buoyant throughout 2009 and ended the year off just nine per cent compared to 2008’s record pace,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Despite weakness in the global economy in 2009, positive local economic and demographic factors continued to support stable residential construction activity within the St. John’s region, as well as in other urban centres across the province,” added Janes.
For Canada’s urban centres, total housing starts increased 17 per cent with 12,262 recorded in December compared to 10,488 during December of 2008. Single-detached starts increased 44 per cent to 6,222, while multiple starts of 6,040 represent a two per cent decline from a year ago. Throughout Atlantic Canada, there were 672 urban housing starts posted versus 574 the previous December, an increase of 17 per cent.

65 acres of land in Pleasantville could be given the go ahead next month.  Single family, duplexes,  condo’s and town homes are expected to surround the shores of Quidi Vidi Lake.  If approved lands sales could go on sale by the end of the summer.

The following is CMHC’s newest press release for housing starts in St. John’s for January.

Urban housing starts increased during the month of January, according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). January’s total housing starts increased 88 per cent, with 124 starts recorded throughout the St. John’s area versus 66 starts in January of 2008. An additional six housing starts were recorded in other urban areas across the province for a total of 130 provincial starts, an increase of 91 per cent.

“January’s urban housing starts posted considerable growth over the same month last year and can be attributed to the relatively mild winter conditions experienced throughout the month,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Pent-up demand, paired with builder capacity constraints, appears to have caused some of the residential construction activity from last year to spill over into the first month of 2009,” added Janes.

For Canada’s urban centres, total housing starts fell 40 per cent with 7,244 recorded in January compared to 12,153 during January of 2008. Single-detached starts decreased 44 per cent to 2,512, while multiple starts of 4,732 represent a 38 per cent decline from a year ago. Throughout Atlantic Canada, there were 348 urban housing starts posted versus 385 the previous January, a decline of ten per cent.

715 acres of land for Southlands and 495 acres for the upper part of Kenmount Road could possibly hold 5000  to 7000 homes if approved for residential development. Full article can be read at The Telegram Online – Expanding horizons: St. John’s looking at opening 1,200 acres to development

Clovelly Trails Phase 3a lot prices are now up on the website for the public and purchasers to view. Clovelly Trails appears to be the most popular subdivision in St. John’s this year. 69 of their lots have had deposits on them for months. Some dating back to 2007.

The lot prices range from $69,900 to $94,900 (plus HST). A hefty jump since the last phase (base price was approx $54,900) but the demand is there to justify it.

Almost all subdivisions in St. John’s and Paradise have increased in prices since last year some as much as ten to fifteen percent.

Remember Fraser and Stephen Winters can represent your interests in the buying of your new construction home. We will be there from lot and house design selection, through signing the paperwork, choosing your paint colors – all the way to final walk-through and beyond.

There are ZERO costs to use our services on the buying side of purchasing your new (or pre-existing) home. There is no cost to you – no decreased incentives – no increased price – the developers actually pay us to work with you through the buying process. Contact us and we’ll show you how we can assist you in finding the new home you’re looking for in ANY subdivision.

Venmar Ventilation has received several reports of major home fires where the suspected cause is a heat recovery system. Therefore, Venmar Ventilation released this press release which affects heat recovery systems as these systems can fail and pose a potential fire hazard to homeowners.

I looked into mine and it was determined that I had one of the HRV’s in question. (Model: 43720) You can fill out the Request Form Product Recall – Safety Upgrade Program and find out if your model is listed as well.

The recall is for models manufactured between 1991 and 2001 as well as between October 2006 and August 2007.
Owners of air exchange systems that are covered by this Safety Upgrade Program must immediately turn their unit off and unplug it, and contact Venmar as soon as possible. (1 866-441-4645) or by visiting their website at www.venmar.ca

It has come to Venmar’s attention that an unlikely series of circumstances could lead to a motor overheating in certain models of air exchangers that may result in a potential fire hazard. For models manufactured between 1991 and 2001 Venmar will provide a safety upgrade device, called Power Plug Adaptor free of charge. For models manufactured between October 2006 and August 2007 Venmar will send a field technician who will inspect and fix the affected units, free of charge.
The Safety Upgrade Program affects certain units distributed under the names: Venmar, Venmar AVS,Flair, vänEE, Sears, Guardian by Broan, NuTone, Conformax, Payne, Day & Night, Carrier, Bryant, Heil, York, Rheem, Ruud, Protech and Weatherking Heat Recovery Ventilators sold in North-America. This program covers units with the following model numbers only. This model number is located on a silver or a black label positioned on the outside panel of the unit.

There has been quite a debate around the “real estate water cooler” in recent weeks.  Towards the end of 2007  some local builders and subdivisions in St. John’s implemented a new “Economic Clause” to their contracts.  Buyers have been noted to shy away from certain subdivisions and proceed to others that do not insert this clause.  The debate is over whether this clause protects the buyer or the builder.   Does it protect the buyer from an increase in purchase price of the house?  Does it allow the builder the option to raise the price of the house prior to starting construction?

The clause states:

“This Agreement of Purchase and Sale is subject to the Vendor confirming to the Purchaser or the Purchaser’s Agent in writing the final sale price on or before the expiry of 14 days prior to excavation of the dwelling. If no written confirmation of the final sale price is issued by the Vendor on or before the expiry of 14 days prior to excavation of the dwelling the Purchase Price referenced herein before shall be deemed to be the final sale price. If written notification of an increase in the final sale price is issued with which the Purchaser is not satisfied then this Agreement of Purchase and Sale shall be void and of no effect. Upon receipt of the written notice of the increased final sale price from the Vendor the Purchaser must acknowledge in writing within 72 hours their agreement with the increase in price, and failure to do so renders this Agreement of Purchase and Sale void and of no effect with the Vendor returning the Purchasers Deposit or down payment.”

What are your thoughts on this clause? Are you in favor of the builder being protected or the buyer?

Statscan recently released information on new housing prices throughout the major cities in Canada. The prices reflect December 2006 to December 2007.

On the west coast, the 12-month increase for Vancouver was 6.4 per cent .

The fastest pace was Saskatoon, which led the nation with an annual price increase of a whopping 45.1 per cent .

Regina, the year-over-year increase was 25.9 per cent.

Calgary, prices rose 6 per cent between December, 2006 and December, 2007.

Edmonton, home buyers saw prices that were 21.5 per cent higher than in December, 2006, down from the high of 41.5 per cent recorded in December, 2006.

Winnipeg experienced a year-over-year increase in December of 15 per cent.

Prices were more moderate in Ontario and Quebec

• 5.9 per cent in Greater Sudbury and Thunder Bay,
• 3.4 per cent in Toronto and Oshawa
• 3.1 per cent in St. Catharines-Niagara
• 3.1 per cent in London
• 0.6 per cent in Ottawa-Gatineau
• 6 per cent in Quebec City
• 4.1 per cent in Montreal

Halifax Real Estate market increased by 10.4 per cent.

And last but certainly not least, the St. John’s Real Estate Market year-over-year increase in new housing prices was 7.9 per cent.

While new home construction in Newfoundland and Labrador is booming, it is not uncommon now to see a six month closing date on new home construction. With a good percentage of the trades people presently working in Western Canada, some contractors are finding it difficult to recruit enough local trades people.

It is estimated that as much as10,000 Newfoundlanders and Labradorians are working out west for companies such as Syncrude, Suncor and Flint Energy, to name a few.

An estimated 4,000 are working on a rotational basis commuting to and from the province, bringing millions of dollars to local communities throughout Newfoundland and Labrador. Some of these commuters are staying in camps, where food, lodging and travel to and from the province are all fully paid.

Workers are drawn to jobs that often start above $100,000 per year and lots of overtime.

While it all may seem wonderful, it has to be a burden on the family structure with 20 days away and back home for 8 days of rest in a repeat cycle.

Can it last? What kind of wages would be required to keep at least some of our trades people home, and what affect will this have on the price of new construction?

With all the new subdivisions in St. John’s and surrounding areas, it’s becoming a common question: “is this property covered under the Atlantic Home Warranty?” A follow up question is”what does it cover?” People hear about the Atlantic Home Warranty but it’s apparent they are unaware of the details.

Atlantic Home Warranty offers a 7-year limited home warranty. This is automatically transferable and increases the value of your home. The warranty stays with the house, not the owner.

The coverage details are listed below.

1. Optional Deposit Protection, up to a maximum of $20,000.
2. A guarantee that the Builder will repair eligible defects in workmanship or materials supplied by the Builder during the first year of ownership.
3. Protection against major structural defects during the remainder of the warranty period.
4. A conciliation service to handle any disagreements between you and your builder during the first year.
5. A total aggregate limit of liability of $50,000.

To determine if a specific builder is a member of the Atlantic Home Warranty program, they are listed on their web site by province and area. Simply click here and follow the directions. You may also contact AHW directly to verify if the Builder is a Member.

It is important when looking to buy a new construction home that you find a builder that is a member of the Atlantic Home Warranty program.

• St. John’s Builder Members
• Conception Bay Members

Your home will be one of the biggest investments in your life, make sure you have the peace of mind….make sure your home is covered.