Nanaimo heads new housing starts on Vancouver Island in 2009

Nanaimo was the brightest spot for new home starts on Vancouver Island in the past year, the Canada Mortgage and Housing said Monday.

While the "Hub City" had 13 per cent fewer starts last year than in 2008, other Island communities saw annual declines of up to 53 per cent year-over-year.

Recovery from a struggling economy looks promising as the last three months of 2009 had more new housing starts than the last five quarters.

"The modest rebound in new construction activity observed during the fourth quarter of 2009 is a sign that builders are starting to respond to the recent surge in resale demand," said Travis Archibald, CMHC senior market analyst.

On Vancouver Island the total number of homes getting under construction last year was 2,345, down 39 per cent from 3,823 in 2008.

Last year's numbers are not a surprise. The worldwide economic crisis and crash in the local multi-family housing boom led to lower monthly start-up numbers in 2009.

However, national house construction rose more than expected in December as Canada's real estate market continued to show signs of recovery.

Housing starts in Nanaimo slipped just 13 per cent for 2009, compared with far larger drops elsewhere on the Island. A total of 789 homes were started in Nanaimo in 2009, down from 921 in 2008.

At year's end, Greater Victoria had the highest number of total starts, at 1,034, down 45.7 per cent from 2008's total of 1,905.

In December, 129 homes were stated in Victoria, down from 159 in November, but a huge increase from just 38 in December 2008.

Duncan's total starts for last year came in at 168, down 38.9 per cent from 2008. The Courtenay area saw starts slide by 52.6 per cent to 245 in 2009, from 517 the previous year, CMHC said.

Finally, Parksville-Qualicam ended the year with 100 starts, a drop from 205 in 2008.

CMHC said the number of seasonally adjusted housing starts across the country were up 5.9 per cent from November, to 174,500 units. Most economists had expected an increase of between 160,000 and 165,000 units in December, following an upwardly revised 164,800 starts the previous month.

"The improvement in housing starts was broad based in December," said CMHC chief economist Bob Dugan. "Solid increases occurred in both single and multiple starts to end the year."

The Bank of Canada may shed further light on whether that strength has pushed Canada into a housing bubble when one of the governor's advisers talks about the real estate sector in a speech Monday afternoon in Edmonton.

The speech will be closely watched for clues of growing concern among Bank of Canada policy-makers on the red-hot recovery in Canadian real estate. It is to be delivered by David Wolf, an adviser to Bank of Canada governor Mark Carney.

According to CMHC data, urban starts were up 6.6 per cent to 157,100 units in December, CMHC said in its report. Multiple-unit starts totalled 77,700 during the month, up from 72,800 units in November, while single-unit starts totalled 79,400, up 6.4 per cent from the previous month.

Urban construction was up 17.8 per cent in Quebec, 15 per cent in Atlantic Canada, 8.7 per cent in British Columbia and 2.9 per cent in Ontario, the report said. In the Prairies, urban starts declined 3.8 per cent.

Rural starts were unchanged at 17,400 units.

"Overall, the uptick in Canadian residential starts underscores the improving response of builders to the dramatic rebound in overall Canadian housing market activity," said Ian Pollick, economics strategist at TD Securities.

"It is increasingly looking like the ‘fever' in the existing home sales market is starting to catch in the new residential housing market. Further, the pullback seen in permits strikes us to be an unwind from unsustainably strong gains due to one-off factors."

Meanwhile, Statistics Canada said Monday that Greater Victoria's building permits climbed to $68.6 million in November, up by 48 per cent from $46.4 million October, and higher than November 2008's total of $49.3.

The Victoria construction industry received a boost Monday with the announced of $42.5-million in renovations to six UVic buildings.

The value of national building permits fell in November by 4.6 per cent from the previous month to $5.9 billion. Still, that was 23.1 per cent higher than November 2008 and 62.8 per cent higher than February 2009, "when the lowest value during the economic downturn was recorded," the federal agency said.

"However, November's value remained below values recorded in 2007 and early 2008."

The decline was due to a drop in the non-residential sector, which offset increases in the residential sector, the agency said.

In a separate release, the Construction Sector Council said the industry the housing recovery is helping the industry emerge from the recession "relatively unscathed," as a result of government stimulus spending and pre-recession record levels of investment.

The not-for-profit group said construction employment has been rising since August after falling from October 2008 to July 2009.

"This will likely continue because of new infrastructure projects, renovation and maintenance work, and strengthening housing starts," it said.

Article by Carla Wilson and Canwest News Service, Times Colonist

http://www2.canada.com/nanaimodailynews/news/story.html?id=2429273

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Housing prices rebound in latter half of '09

Vancouver Island sales remain relatively stable compared to other volatile markets

Vancouver Island house sales bucked the trend by staying relatively buoyant in December, a month when buyers usually take a holiday.

The average selling price rose in four of six Island markets last month, a first since the market meltdown of October 2008.

December saw a pace of sales about double that of a year ago, and with an increased average selling price in two-thirds of communities tracked using annual sales summary data collected through the real estate industry's proprietary Multiple Listing Service.

"Traditionally November is a better month than December," said Jim Stewart, Vancouver Island Real Estate Board 2010 president elect.

"I think the fact that our sales numbers in December were equal to the sales numbers for November . . . that shows confidence in the marketplace."

In Nanaimo, the average selling price rose to $373,000 in December, up $13,000 from a year earlier.

Other communities with higher selling prices include Cowichan Valley, up 11% to $387,000, Comox, up 6% to 340,000 and Campbell River, also up 1% to $295,000.

Prices fell 2% to $387,000 in Parksville-Qualicum Beach and 11% in the Port Alberni-West region, to $222,000.

On average, Nanaimo home prices fell 4% this year. In the same period cities like Vancouver saw much greater swings.

"Our market here is very solid, you're not selling for (reductions of) 10%, 15% or 20% or more, as in some communities in other parts of Canada," Stewart said.

Stewart expects the market to remain strong through the spring, "but with the prospect of interest rates going up this year it means if you're thinking about it you better get on with it." The Harmonized Sales Tax applies on new homes sold after July 1.

Article by DBellaart of Nanaimo Daily News

Published: Tuesday, January 05, 2010

http://www2.canada.com/nanaimodailynews/news/story.html?id=9ca072d0-3ad7-4315-9a22-467d50c1894f

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Resolutions for a more livable home

Tips on insurance, indoor health, emergencies

The holiday rush is over and the decorations are put away, but you still have plenty of New Year's resolutions to make. Besides the diet, here are 10 resolutions that will make your home a better place to live in 2010.

1. Change the batteries on your smoke detectors
Rather than waiting for your smoke detector to go off in the middle of the night when the battery goes out, get in the habit of replacing the batteries the first weekend of each year. If you have a fireplace or gas appliances, it would also be wise to install a carbon monoxide detector to avoid deadly leaks.

2. Update your insurance policies
Many people buy new items over the course of the year, especially at the holidays. If you have purchased a new computer, jewelry, art, or other major item, check with your insurance company to determine whether you need to increase your insurance. Review your policy to determine if you have "full replacement value" coverage. If your policy doesn't have this coverage and you experience a major loss, the insurance company can give you the pro-rated value of your appliances and other items. The net effect is that you will lack the funds necessary to restore your home to its original state prior to the loss.

3. Take pictures and/or video
If you haven't done so already, take pictures and/or video of every nook and cranny in your home. Store this in a safe deposit box away from the property. (It's also smart to save it online). If you do experience a major disaster, you have proof of the quality and the condition of your home prior to your loss.

4. Eliminate toxic cleaning materials
You can clean most of your house with vinegar, water, baking soda, and a microfiber cloth, according to the Spring Cleaning Guide at HouseLogic.com. The orange-based cleaners also work well. Use microfiber on your stainless steel appliances to make them shine. Best of all, not only will you save money, you will avoid mixing your food with toxic chemicals.

5. Change the filters on your heating/air conditioning systems
During the winter, we generally don't have the luxury of leaving our windows open to air out our homes. Changing your filters not only helps your system work more efficiently, it also reduces allergens and other irritants.

6. Check your emergency preparedness
If you live in an area where you may experience an extended power outage from an earthquake, hurricane, snowstorm, tornado or even a terrorist attack, make sure that you have sufficient amounts of water, food, a generator, and propane or charcoal for cooking during an emergency. The usual guidelines are to have at least one week's worth of everything you need. This includes medications. You may want to consider purchasing some of the wilderness supply products including a solar generator that fits in a backpack.

7. Don't just vacuum your carpets
The next time you vacuum, be sure to also get your refrigerator coils, the lint filter in your dryer, and your tiled surfaces. Apparently, water helps small particles bind to the grout rather than washing them away. If you vacuum before you wash the tile surfaces, you will prevent grime buildup in your grout.

8. Check your chimney and/or wood stove
Chimneys are designed to carry toxic fumes away from your living area. Many people believe that chimneys are maintenance-free. They are not. Check your flue to make sure it's operating properly. Also, depending on how much wood your burn, you should have your chimney cleaned on an annual basis. If you're burning more than four cords per year, it's advisable to have your chimney cleaned twice a year. There are more than 25,000 chimney fires every year. For additional prevention information on chimney maintenance, visit the Chimney Safety Institute of America.

9. Check for air leaks
A cold, windy day is a great time to discover where your house is not properly sealed. In many cases, all you need to repair the leak is some caulking. If your windows need replacing, research what types of rebates are available for installing energy-efficient windows. There are also energy rebates for insulation and for radiant barriers for your attic. A radiant barrier prevents heat loss during the winter and keeps heat out during the summer.

10. Kill dust mites
Like the other flat surfaces in your home, dust accumulates on your bedspreads, drapes and other fabric surfaces. If you're not ready to haul these to the cleaners, many experts suggest running them through your dryer. (Caveat: Some fabrics such as rayon may melt in your dryer, so check the labels.) A different option is to vacuum and then steam the fabrics using a portable steamer.

While this list is by no means comprehensive, it is an excellent way to make your house more livable throughout the upcoming year.

Article by Bernice Ross, Inman News

http://www.inman.com/buyers-sellers/columnists/berniceross/resolutions-a-more-livable-home?page=0%2C1

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Rosy real estate market reported

By Chris Bush - Nanaimo News Bulletin

It was the year of the hangover. The headache-inducing fall of 2008, with stock markets and consumer and business confidence plummeting, led to a sobering January and February. Jobs were down, bankruptcies were up and condo developers were slashing prices. But as the year progressed, the headache started easing. Jobs continued downward, then bounced up and back down. Real estate markets showed signs of life as the Bank of Canada lowered its bank rate as low as it could go and commercial banks followed, bringing mortgage rates down to previously unseen levels.

But while the diagnosis is we're on the mend, people are remaining cautious, taking a “it ain't over 'til it's over” view.

JANUARY

The forest industry, which has already suffered a couple of bad years, is still not out of the woods, as Western Forest Products announces its three Nanaimo-area operations will close indefinitely, putting another 720 forestry workers out of work, the biggest single lumber closure since the housing market in the United States collapsed two years earlier.

Catalyst Paper adds to the gloom by shutting down a newsprint machine at Crofton, laying off 80 workers.

The Bank of Canada sets new records for its overnight target interest rate in an effort to stimulate the economy. In January Canada's central bank cuts the rate to a 50-year low of one per cent. That record is broken in March, when the bank lowers the rate by 50 basis points, to half-a-per-cent, and again in April when it reaches an unbeatable 0.25 per cent, down from 3.0 per cent a year earlier. Any lower and banks could borrow money for free.

The federal government releases its budget with new perks for homeowners and buyers — a home renovation tax credit worth $1,350 and an increase in the amount first-time home buyers can withdraw from their registered retirement savings plans for a down payment: from $20,000 to $25,000. The budget also calls for a deficits of $34 billion and $30 billion for the next two years, the first deficits in more than a decade.

House prices in Metro Vancouver fall for the seventh-straight month and are down 8.3 per cent from peak levels reached in June 2008.

Developers do two things: cut prices on condos, starting with Onni Group of Companies which slashes prices on 375 Metro Vancouver condos by as much as 40 per cent; or sue presale buyers for failing to close. One of the first in this latter category is Amacon, which sues buyers who fail to complete purchases at its Morgan Heights development in south Surrey, as condos are now worth less than buyers agreed to pay. By March, at least six developers have filed a total of 74 lawsuits against buyers in B.C. Supreme Court in Vancouver.

FEBRUARY

The City of Vancouver has to bail out the troubled athletes' village on False Creek when builder Millennium Development Corp. runs into cost overruns and loses its financing. The city pays off Millennium's outstanding loan and agrees to finance the rest of the project, which could mean having to borrow as much as $720 million, hurting the city's credit rating.

B.C. releases its budget, and despite denials as recently as December 2008, there will be deficits, but only for two years. That prediction is revised in August– did we say two years? We meant four.

More bad forestry news — Catalyst Paper shuts down its Campbell River paper mill and says it will restructure its Powell River mill, laying off more than 525 people at the two operations. Less than a week later, it mothballs the Crofton pulp mill, laying off another 375 workers. Part of Catalyst's problem –huge property tax bills it says it can't afford to pay.

The half-billion-dollar 60-floor Ritz-Carlton hotel-condo project in downtown Vancouver is killed because of what developer Holborn Group calls the “worldwide economic turmoil.” In September, improving conditions take the project out of mothballs, although perhaps without the glitz of the Ritz.

Not surprisingly, the number of personal bankruptcies in B.C. skyrockets during the first two months of the year. In February, 1,080 people were in financial straits, either filing for bankruptcy or making a proposal to creditors, up 49.4 per cent from the 723 people in the same situation a year earlier.

MARCH

The S&P/TSX Composite Index hits 7,566.94, an almost 50-per-cent drop from its peak of more than 15,000 reached in June 2008. Thankfully, it doesn't go any lower and by mid-December, Canada's main index hovers around 11,500. But it isn't a smooth ride, with many precipitous drops along the way.

Vancouver loses cruise ships, as Carnival Cruise Lines announces it is shifting its Alaska cruise ship operation from Vancouver to Seattle in 2010, a move that's expected to bring $18 million less into the local economy. Holland America, owner of the Volendam and its sister ships, says it too will move some of its sailings from Vancouver to Seattle while Norwegian Cruise Line says its Alaska-bound cruise ship, the Norwegian Sun, will cruise in Europe in 2010, instead of Alaska. But one bright light in the fog: In September, Disney Cruise Lines announces that Disney Wonder will make 18 sailings from Vancouver in 2011.

Richmond-based pet store chain Petcetera, with 1,600 employees and 49 locations in Canada, files for creditor protection. In September, founder Dan Urbani pays up to $730,000 to save 20 of the stores, getting a new leash on life.

And just when you think it can't get any worse, Nanaimo-based Forest & Marine Investments, the main private investment company financing the coastal logging sector, heads into creditor protection cutting off financing to about 75 small-to medium-sized forest sector businesses. And Canfor Corp. announces production, cuts at six B.C. Interior sawmills that will put more than 700 workers on reduced work weeks.

B.C. keeps shedding jobs, especially in construction, the financial sector and manufacturing, pushing the unemployment rate up to 7.4 per cent.

Throughout the rest of the year, jobs are up and down again, with the unemployment rate reaching 8.3 per cent in November. But real estate shows signs of life with sales up from a dismal February, though still slower than a year earlier.

APRIL

The Beasley condominium development in downtown Vancouver sells out its remaining 70 units when developer Amacon reduces presale prices by as much as $250,000 per unit.

B.C. announces an agreement with 16 first nations along the route of a proposed 463-kilometre gas pipeline in northern British Columbia that will carry gas to a liquefied natural gas plant in Kitimat. First nations involved estimate the deal could bring them more than $1 billion in profits, taxes and business opportunities.

Burnaby-based MetroLyrics, a web-site that provides song lyrics and gets a staggering 31 million monthly viewers, strikes a deal with AOL Music that gives AOL users a direct link to MetroLyrics content. In December MetroLyrics cofounder Milun Tesovic, a 24-year-old student at Simon Fraser University, wins first place in the Global Student Entrepreneur Awards, beating out 30 finalists from 18 countries.

MAY

Finally a tiny bit of good news: Canfor says it will reopen its shuttered Mackenzie sawmill in July, giving 60 people jobs after receiving concessions from the town, the province and the unionized workforce. But it will also close three sawmills in the interior, laying off 570 workers. And Catalyst Paper says it's cutting 100 salaried positions.

Some really good news: Pixar Animation, one of the world's leading computer animators and a multi-Academy Award winning studio, says it will build a 20,000-square-foot facility in Vancouver, giving jobs to between 75 and 100 people.

More bad news: eBay announces it will close its Burnaby customer-service office in September, cutting about 700 jobs as it consolidates customer-service operations in Salt Lake City, Utah.

Export Development Canada predicts British Columbia's exports will fall 23 per cent in 2009, as the global economy continues to pound the province's forestry and energy sectors. That drop is revised to 29 per cent in November.

General Motors sends out letters to about 200 dealerships in Canada, telling them their agreement with GM will not be renewed in the fall when the time comes. On a pro-rata basis, that could mean as many as half the 60 GM dealerships in the province will shut down. But when the dust settles, the New Car Dealers Association says it is only aware of seven dealerships that got the dreaded letter. GM refuses to say, saying it's up to the dealerships to give that information.

JUNE

Jameson House condominium project in downtown Vancouver wins court approval for its restructuring plan, getting construction back on track. But to keep presale buyers in the 37-storey tower onside, the developer offers them discounts of between $29,000 and $575,000. Other condominium projects that had been temporarily on hold come back to life, including Richards, which presells 90 per cent of its units in 45 days, and Cosmo, which presells more than 230 units in three days in July, signs that the presale condo market is back.

Forestry gets a federal boost when Canada announces a $1-billion aid package for energy-efficient capital upgrades at some, but not all, pulp and paper mills, of which B.C. is expected to receive $420 million to $440 million.

The harder they fall: BMO Capital Markets Economics says the economic recession is hitting B.C. harder than many other provinces, but after falling faster, the province should rebound quicker.

One good thing about the recession is lower prices. And nowhere is that more noticeable than at the pumps, with the average price of regular gasoline in Vancouver reaching its summertime high of 113.3 cents per litre, way down from the 148.5 reached in the summer of 2008.

Metro Vancouver's hot real estate market is back, with sales up 76 per cent from June 2008.

And the numbers keep coming, with both Metro Vancouver and Fraser Valley real estate boards reporting record home sales for the month of July and good numbers in the following months. Prices inch up too, though by the end of the year they still haven't reached the pinnacles of 2008.

JULY

China Investment Corp., a Chinese investment fund, agrees to buy more than 100 million shares of Teck Resources, injecting $1.74 billion into the struggling resource company. While deep-pocketed China has hit many countries on an international shopping spree, picking up cheap assets and investing in depressed companies around the world, this is the first significant deal to hit B.C.

The Burrard Bridge bicycle lane opens to great success — if you're a cyclist. But it's not so successful for businesses on Hornby Street south of Pacific Boulevard. New lane closures mean there is no longer drive-by traffic and that's where Art Knapp Urban Garden and Appleton Galleries get as much as half of their business.

Three forestry companies refuse to pay their property tax bills, claiming they are unfair. Catalyst Paper pays only $6 million of the $23 million it has been levied by the municipalities of North Cowichan, Port Alberni, Campbell River and Powell River. Timber-West Forest challenges Campbell River's $1.25-million tax bill. And Mercer International, owners of the Zellstoff Celgar pulp mill at Castlegar, holds out on its $3.6-million bill. But the B.C. Supreme Court tells Catalyst it must pay the taxes. The other two companies are still waiting to hear.

It could be the biggest business story of the year — the provincial government introduces the harmonized sales tax, bringing in $1.6 billion from the

federal government and raising the ire of restaurant owners, home builders and nine out of 10 British Columbians, according to an Ipsos Reid survey. But many businesses and industries come out in favour of the tax, which will reduce the amount of input taxes they pay and cut administrative costs.

The fast ferries fiasco floats away as the ships British Columbians, especially Liberals, love to hate, are sold to a United Arab Emirates-based builder of luxury yachts, for an undisclosed amount. The three ferries, built when the New Democrats were in power in the late 1990s, cost $454 million and were sold shortly afterwards by the Liberals to Washington Marine Group for just under $20 million.

B.C.'s T&T Supermarket, one of Canada's largest Asian food retailers with 17 stores across the country, is bought by Loblaw Companies Ltd. for $225 million.

AUGUST

B.C.'s power grid finally gets some wind, with the first wind-generated electricity, at AltaGas Income Trust's Bear Mountain wind park near Dawson Creek, adding to the province's power supply. By the end of the year, the project is expected to produce enough power to service 31,000 homes.

Tourism-industry representatives are shocked when the government announces it is ending Tourism BC, rolling the marketing organization and 146 staff into the Ministry of Tourism.

Float plane and other small commuter operators complain they have been grounded by Olympic security rules that require passengers and luggage be screened before they travel to Vancouver area.

Some good news in the forest industry — surging pulp prices put 144 laid-off employees back to work as Catalyst restarts one of its pulp lines at Crofton and Harmac fires up a second line in Nanaimo. And outlooks by analysts predict the industry will not exactly bounce back, but at least improve, in 2010.

SEPTEMBER

The province promises it will push ahead with construction of a $404-million transmission line through northwestern B.C. after the federal government says it will kick in up to $130 million of the cost. The new power line will be good news for proposed mining projects in the area that need the power to operate.

B.C.'s forests minister declares that the mountain pine beetle epidemic, which has devastated 620 million cubic metres of timber (the equivalent of 620 million telephone poles) is over.

But it's not because the beetles have been defeated; they've just run out of trees

B.C. liquor stores will change the way they display bulk imported wines that are now being sold as B.C. wines because they are bottled in the province, after the marketing practice was criticized as misleading. Winemakers who sell the imported wine agree to change their labels as well.

B.C.'s job numbers stage the best recovery in the country, adding 14,000 jobs, bringing the province's unemployment rate to 7.4 per cent.

OCTOBER

Google's Street View goes live in Vancouver and several other Canadian cities, giving rise to privacy concerns, an increasingly common issue in the new social networking and digital age. Earlier in the year, Canada's privacy commission took Facebook to task about its lack of safeguards protecting user information from third party Facebook application creators.

Shareholders of Gallowai Metal Mining Corp. and Bul River Mineral Corp. say 33 years is too long to get a mine up and running. They bring an action to replace promoter Ross H. Stanfield, who has raised more than $220 million from investors in the 33 years but has failed to get the mine, near Cranbrook, operating.

Digital Domain, the visual effects company behind Academy Award-winning films Titanic and The Curious Case of Benjamin Button, says it will open a 20,000-square-foot studio in Vancouver in early 2010.

Vancouver-based Telus Corp. drops its controversial system access and carrier 911 fees for its wireless customers, as competition for wireless customers heats up.

It only took 13 years, but financial fugitive Rakesh Saxena, accused of embezzling $88 million from the Bangkok Bank of Commerce through a series of fraudulent loans, is finally on his way back to Thailand. Saxena, who spent most of his time in B.C. under house arrest in what could be called posh surroundings, was almost successful in running out the statute of limitations in Thailand, which would have expired in July 2010.

NOVEMBER

Bell and Telus launch their iPhone service — until now the exclusive purview of Rogers Communications — along with their new joint HSPA, or high-speed packet access, network.

Prime Minister Stephen Harper orders a judicial inquiry into the collapse of sockeye salmon runs as spawning on the Fraser River reaches a 50-year low.

Kindle, Amazon's popular digital electronic book reader, comes to Canada in time for Christmas, with a $330 price tag.

Intrawest ULC, the owner of Whistler-Blackcomb, which has been struggling with a high debt load, sells its Copper Mountain Resort in Colorado.

The provincial government throws the home-construction sector a harmonized sales tax break, raising the threshold for its maximum tax rebate — to $525,000 from $400,000 — and extending the deadline for when the HST will apply to new housing.

A heavy debt load and a poor ski season a few years ago forces Manning Park Resort, a summer and winter wonderland in the heart of the Cascade Mountains, into receivership.

DECEMBER

Prime Minister Stephen Harper's first visit to China gives B.C.'s tourism industry an economic boost that could be worth $15 million a year or more, as China finally agrees to grant Canada approved destination status, making it easier for Chinese tourists to fly to Canada.

Wind Mobile becomes the first new kid on the block, after launching its cellphone service in Toronto and Calgary, with operations in Vancouver, Ottawa and Edmonton to come in the new year. Its service starts at $15 per month and there are no contracts or service access fees.

The BC Utilities Commission okays an application by Terasen Gas to pay more for its gas transportation and storage, which means customers will pay about $60 more a year.

A year after trying to sell its space business, an attempted sale that was halted by the federal government, Mac-Donald Dettwiler wins a $254-million US contract to build and launch a satellite for the Ukraine space agency.

It's the second big contract for the Richmond-based company, which earlier had inked a $200-million Cdn deal to provide satellite information systems to the Russian Radio Research and Development Institute.

Vancouver-based Eldorado Gold becomes the largest foreign-based gold producer in China with its friendly $2-billion takeover of Australian miner Sino Gold.

Saturday, December 26th, 2009 | 6:10 am

Canwest News Service

fionaanderson@vancouversun.com

http://www.kelowna.com/2009/12/26/the-year-of-the-hangover-the-countrys-worst-recession-in-nearly-a-generation-gave-way-to-glimmers-of-hope-in-2009/

 

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NAR: Home sales spike in November

Sales rate of resale homes climbs 44% year-over-year

The sales pace for resale homes rose for the third straight month in November, climbing 44.1 compared to the same month last year, the National Association of Realtors reported today.

Sales reached a seasonally adjusted annual rate of 6.54 million, up 7.4 percent compared to October 2009. This rate is a projection of a monthly total over a 12-month period, adjusted to account for typical seasonal fluctuations in sales.

Regionally, the sales rate rose about 53.5 percent in the Midwest, 52.7 percent in the Northeast, 44.8 percent in the South and 28.1 percent in the West year-over-year in November.

By Inman News

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Stage it to the limit

4 ways sellers can maximize curb appeal

Flickr photo by Alex Kehr.

For most home sellers, it probably would come as a "well, duh" suggestion from their real estate agents that they need to keep the grass cut and landscaping tidy.

But there's plenty more front-yard primping that could -- make that must -- be a priority for sellers, according to Sue Guers, a Fountain Hills, Ariz., designer and home stager. She says many sellers don't give as much thought to curb appeal as they should because they often enter and exit by car, via their garages. They just don't see the yard the way buyers do, she said.

"You've only got a few minutes to make that great first impression," said Guers, who estimates that 90 percent of her company's staging and design work is done on behalf of local real estate agents. "Some people decide within 15 seconds whether to come in and look at the house, based on what they see on the outside.

"Remember, you're merchandising a product," she said. "It's got to be new and bright and shiny and clean. There's got to be a sense of 'arrival' when they drive up."

Five things to keep in mind about front-yard facelifts:

1. Start out in somebody else's yard. "Take a step back and walk the neighborhood," Guers said. "Look at the houses that intrigue you from a visual perspective."

Take an inventory of their "visual value," from the condition of the roof shingles to the cut of the shrubbery, she said. Then go home and see how close your own house comes to meeting that standard.

2. Your house probably needs a bath. "Yes, people actually ought to wash their house," said Guers, who operates her Property Promoters firm with fellow designer Laura Harvey (ThePropertyPromoters.com). "They may be good at painting it every five years, but if they haven't power-washed their house in a couple of years, they're going to need to do that.

"And power-wash the sidewalks, too," she said. "You'd be surprised at how different it makes them look."

Plus, fix sidewalk cracks while scrutinizing them, she said.

3. Take a hard look at your hardware. "Replace older house numbers and older hardware that's simply out-of-date," she said. "Sellers forget the mailbox, and the house numbers."

That can be an extensive -- and maybe expensive -- undertaking, but in the case of doorknobs, doorbells, kickplates, and exterior light fixtures that look tired or out of style, doing as much as you can afford to freshen up will be an investment in making a better impression, she said.

(While you're standing on the porch, give that grungy old welcome mat the once-over, too, she said.)

4. Paint, in some cases, can save the day.
"You can paint some existing hardware, such as light fixtures, especially if there's an old finish that you want to update to a different color," Guers said. "Brass is pretty much outdated now."

The good news is that brass accepts paint well, but be careful to pick the right paint; consult a good paint retailer to be sure, she said.

"If you don't spend time on the outside, they're never going to make it inside."

Read the full article By Mary Umberger Inman News

http://www.inman.com/buyers-sellers/columnists/maryumberger/stage-it-limit?page=0%2C0

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Nanaimo: The Capital of Google Earth

How will cities reshape themselves in the age of Google Maps and Google Earth? The little Canadian town of Nanaimo, profiled in Time Magazine this week, offers a glimpse into the future. Dubbed “the capital of Google Earth”, Nanaimo, an old coal mining city of only around 78,000, has fully embraced raw electronic data, betting that by doing so, they may increase the flow of tourists into the city.

Virtually every single business in the city has been mapped on Google Earth, which, according to the city officials, is also helping to boost economic activity in the area. Homeowners can find specific info about their garbage collection schedule, track firefighters in real-time, and explore the city’s 150-year old downtown rendered in 3D and dotted with 360-degree panoramas.

But they don ‘t want to stop there — data mash-ups would be the next big thing; the city authorities also hope that the capital of Google Earth will lure tourists that way (a topic that is quite relevant given that the 2010 Olympics are in the nearby Vancouver).

But to get the full picture of how ambitious the city of Nanaimo is, read the following:

http://evgenymorozov.com/blog/?p=282

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Home sales surge 73 per cent.

National home sales increased by 73 per cent in November from the trough seen a year ago, with Ontario and Quebec hitting new monthly records as buyers took advantage of record low interest rates to secure mortgages.

The national average price gained 19 per cent compared to November 2008, at $337,231, the Canadian Real Estate Association said. Since the beginning of the year, prices have gained 4.4 per cent compared to the same time last year.

“The year-over-year increase in November continues to reflect the high degree to which the average was skewed downward last year by plummeting activity in Canada's priciest markets, and then upward by rebounding activity,” the association said in a statement.

CREA tracked 36,383 deals on its Multiple Listing Service in November. Crediting the housing market for leading “the overall Canadian economy out of the recession,” association president Dale Ripplinger said the numbers were a sign of an entrenched recovery.

“National home sales activity last month shows how strongly the housing market has rebounded since the beginning of the year,” he said.

Article by Steve Ladurantaye The Globe and Mail

 

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Prospective homeowners can still plan to buy low and sell high in Nanaimo’s real estate market.

The Vancouver Island Real Estate Board is reporting a somewhat rosy picture in Nanaimo, where unit sales topped out at 85 for November.

Real estate sales did their traditional seasonal drop coming out of the summer and early fall – 143 units sold in October – but posted a 73-per cent rise over November 2008’s sales figure of just 49 units.

But November’s average per unit selling price of $360,328 is still six per cent less than it was in November a year ago.

Jim Stewart, a VIREB director and realtor with the Coast Realty Group in Nanaimo, said month-to-month price figures can be easily skewed by overall property types sold in that month, so a six-per cent difference for November 2009 could be meaningless.

“I think the real picture comes from the number of sales and the amount of inventory that’s left – and our inventory, I think, is down 30 per cent,” Stewart said.

Housing starts totalled 921 in Nanaimo for 2008, but the Canadian Mortgage and Housing Corporation is predicting just 830 starts for all of 2009 – down 9.9 per cent and nearly matching 2007’s 833 housing starts.

The CMHC also forecasts just 800 starts in Nanaimo through 2010, a further 3.6-per cent drop and a stark contrast to the overall provincewide forecast of 23,400 housing starts – a 53.9-per cent increase over 2009.

If Nanaimo is out of step with the rest of the province in 2010, Stewart said this is good news overall for local sellers.

A low inventory pushes prices up and as prices rise, builders respond by building more houses, further stimulating the economy.

But he predicts builders will also continue to be cautious about the housing market and financing from banks is tighter than it was in the past, which means a continued limited housing inventory – factors that will maintain upward pressure on property values.

“Remember, we still live where everybody else wants to and that’s going to continue to put pressure on our inventory,” Stewart said. “We’ve still got a terrific market and overall, our market did very well in the big perspective.”

photos@nanaimobulletin.com

http://www.bclocalnews.com/vancouver_island_central/nanaimonewsbulletin/lifestyles/80180132.html

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The Year Of The Hangover; The country's worst recession in nearly a generation gave way to glimmers of hope in 2009

Consumer bankruptcies decline

Maybe, just maybe, the recession's toll on the Canadian consumer is easing. While it's never a good idea to make too much of a monthly number, it's still noteworthy that consumer bankruptcies, which have surged since the slump began, fell more than 28 per cent in October. That may be in part because people have been rushing to beat a mid-September deadline on changes to bankruptcy law, but it's still a good sign. Over all, total insolvencies among consumers and businesses in Canada fell 19 per cent from September. According to the Superintendent of Bankruptcy Canada, it's only the second time in a decade that October insolvencies were below those of September.

Read full article by Michael Babad Globe and Mail

http://www.theglobeandmail.com/report-on-business/is-housing-really-that-frothy-consumer-bankruptcies-ease/article1401241/

 

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Is housing really that frothy?

A housing bubble? Not yet

The stunning rebound in Canada's real estate markets continues to prompt speculation about whether a bubble is forming. Today, the Canadian Real Estate Association reported that home sales rose 73 per cent in November across the country, though that's compared with weak numbers at the height of the crisis a year ago, and that fresh records were set in Ontario and Quebec. Nationally, the average price rose 19 per cent to $337,231, compared with a year ago.

In a note titled “It's beginning to look a lot like a bubble,” Douglas Porter of BMO Nesbitt Burns said today: “Before officially declaring this a Bubble with a capital B, we would again painstakingly point out that the reported price change is skewed by the surge in Vancouver and Toronto sales, two of the priciest markets. Using a fixed-weight measure, average home prices in the major markets have risen by a milder 11 per cent [year over year] – still robust, but short of a warning-bell-ringing pace. … While we don't believe Canadian housing is in full-blown bubble territory quite yet, there is clearly a risk of a blow-off to the high side in the months ahead.”

Record-low interest rates and other government measures are driving buyers, with willing sellers looking at hefty premiums. There are fears that some home buyers taking on debts now may not be able to handle them when rates rise. Economist Sheryl King of Bank of America Securities-Merrill Lynch said there's no bubble yet but, citing variable-rate mortgages, acknowledged the seeds are there.

But new listings are also on the rise and CREA economist Gregory Klump said rising prices and higher rates next year will cool the market.

Read full article by Michael Babad Globe and Mail

http://www.theglobeandmail.com/report-on-business/is-housing-really-that-frothy-consumer-bankruptcies-ease/article1401241/

 

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Cruise ships could be tourism boon

The scheduling of two delegations for the same North Cowichan Economic Development Committee meeting in November has many seeing an economic boon headed the Cowichan Valley's way.

On Nov. 10, Mark Moore updated the committee on the plans to move the Duncan-Cowichan Chamber of Commerce/Visitor Information Centre to the Forest Discovery Centre before deferring to President and Chief Executive Officer of the Nanaimo Port Authority, Bernie Dumas.

Dumas explained the Port Authority's recent influx of funding to expand their cruise ship terminal so that it is capable of accommodating larger ships to Nanaimo.

The ships are getting so big they can't fit under the Lions Gate Bridge in Vancouver," said Coun. Ruth Hartmann. That's why they are looking to tie up in Nanaimo.

"There are great opportunities," said Hartmann of the influx of tourists pulling in just up the highway from North Cowichan.

Dumas told the committee all communities within a two-hour bus ride of Nanaimo are likely to benefit from the 2,500 passengers on each of 25 to 30 ships a year whose passengers, on average, each spend about US$80 a day while onshore.

"The one message that came out from the Port Authority is: to get those passengers off those ships, they need somewhere to go," said Coun. John Koury, the chair of the Economic Development Committee.

With plenty to see and do in the Municipality, it's a natural fit to encourage tourists to travel south.

"The opportunity is here in North Cowichan with a new visitors centre, in amongst the others things we have to offer," said Koury. "It will enhance their tourist opportunities."

He said the two delegates left the meeting with each other's contact information and the desire to work together to produce a win-win situation.

Read full article by Sarah Simpson, The Citizen

http://www2.canada.com/cowichanvalleycitizen/news/story.html?id=708d4e86-24de-4ab5-8498-40c6d09e4064

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Vancouver Island Real Estate Board (VIREB) Reports Robust November

Home Prices to Soar in 2010: Re/Max

A new report will be greeted as a good news/bad news proposition for Canadians, depending on which side of the home ownership fence they currently reside. Good news for home owners, who can expect housing values to end 2009 at an average of $318,000, up five per cent from 2008; and bad news for those still waiting to break into the market, as prices are expected to rise another 2 per cent by the end of 2010 - the highest level in Canadian history. Where are home prices headed across the country? Click to find out.

Canada
Average price in 2007: $307,265
Average price in 2008: $303,594
Average price in 2009: $318,000
Change in '09: +5%
Average price in 2010: $325,000
Change in '10: +2%
Source: CREA, Local real estate boards, RE/MAX

Vancouver Island Housing Starts Jump 22% in November

Vancouver Island housing starts jumped by 22 per cent in November, marking the highest level since September 2008, the Canada Mortgage and Housing Corp. said Tuesday.

This increase mimics the provincial and national scene. In B.C., starts rose to 17,200 (seasonally adjusted) in November, up from 16,200 in October.

Nationally, housing starts climbed to the highest level in a year last month, said CMHC, although they were still below expectations.

A total of 311 new homes got underway on the Island last month, up from 255 in October, the federal agency said.

Last month's starts came in 91 per higher than the 163 seen in November 2008. When the global economic crisis hit late last year, it slammed the brakes on a regional building boom for condos and single-family homes.

About half the Island starts in November took place in Greater Victoria, where work began on 159 new homes. Langford, where much of the local residential construction has been taking place, led the way with 51 starts, followed by Victoria with 50.

"Two consecutive months (October and November) of year-over-year increases in residential construction activity have been recorded for urban Vancouver Island," said Travis Archibald, CMHC senior market analyst.

Island housing starts haven't been this high since September of last year, he said. That month saw 384 homes started.

Nanaimo saw 58 homes started, followed by the Courtenay area with 42, Duncan at 37, and Parksville-Qualicum at 15.

Despite the recent increases in starts, totals for the Island so far this year lag 43 per cent below the first 11 months of 2008. Between January and November of this year, a total of 2,124 homes were started, compared with 3,698 for the same period last year, CMHC said.

Nationally, the seasonally adjusted annual rate of home construction reached 158,500 units in November, up from 157,400 units the previous month, CMHC said.

Despite being at a year high, housing starts during the month were still below economists' forecasts of between 159,500 and 160,000 units.

"The improvement in housing starts continued in November," said Bob Dugan, CMHC's chief economist. "Despite a small decline in November's multiple-home construction, overall starts numbers were up due to a solid increase in singles starts."

The annual rate of urban starts rose 0.7 per cent to 141,100 units in November, the federal agency said. Urban multiple-unit construction fell to 71,300 units from 72,500 units in October, while single urban starts increased 3.4 per cent to 69,800 units.

Read full article by Carla Wilson Canwest News Service, Times Colonist

http://www2.canada.com/nanaimodailynews/news/story.html?id=2316781

Bank of Canada to keep rates down.

The Bank of Canada kept borrowing costs at a record low 0.25 per cent today and reiterated they'll probably stay there through the middle of next year, while expressing cautious optimism that economies around the world are on the mend.

``Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010,” Governor Mark Carney and his rate-setting panel said in the statement accompanying their decision.

Still, TD Securities strategist Eric Lascelles said that though maintaining the commitment to stay on hold through mid-2010 was ``the most important signal,” the bank's statement came across ``at least slightly more hawkishly” than past versions by recognizing that the global economy is picking up and indicating less immediate concern about the impact of Canada's strong currency on exporters.

The ``main drivers and the profile of the projected recovery” are unfolding as policy makers predicted they would in their last quarterly forecast in October, the central bank said, but because global economic developments since then have been ``slightly more positive,” the global outlook has ``improved modestly.''

The bank nonetheless warned that ``significant fragilities remain” and sought to temper speculation that it might raise interest rates before July of 2010. The bank noted that third-quarter economic growth was held back by weak exports, and said domestic demand is carrying the load in helping the economy turn around.

Policy makers also said ``persistent strength in the Canadian dollar” could be a ``significant further drag on growth and put additional downward pressure on inflation.” In the previous statement, however, the bank had said the loonie's ascent could ``more than fully offset” recent gains in the economy.

The bank repeated that policy makers see inflation returning to their 2 per cent target in the second half of 2011 and overall risks to the inflation projection ``are tilted slightly to the downside,” a reminder to markets that unless this changes policy makers are unlikely to speed up a return to higher interest rates. 

Read full article by Jeremy Torobin at The Globe and Mail

http://www.theglobeandmail.com/report-on-business/bank-of-canada-to-keep-rates-down/article1392360/

Housing starts hit 2009 high

Housing starts hit their highest level this year in November, more proof that Canada's real estate market has clawed out of recession.

Starts rose 0.7 per cent to 158,500 units on a seasonally adjusted basis, as single-home construction outweighed a drop in multiple home activity, Canada Mortgage and Housing Corp. said Tuesday.

Record low interest rates are fuelling a rebound in Canada's real estate market, spurring rising prices and a flurry of buying activity. The Bank of Canada today reiterated its expectation that rates will stay low until the middle of next year.

“The piping-hot Canadian housing market should continue to drive improved residential construction activity,” said Bank of Montreal economist Robert Kavcic. “The Canadian construction industry is looking like source of strength in the coming year.”

Residential investment will account for a growing portion of Canada's economy, said Toronto-Dominion Bank economist Pascal Gauthier. He expects such investments – which include home renovations – will reach 6 per cent of GDP next year, up from its current level of about 5.7 per cent.

More builders have plans in the works, a report showed yesterday. Building permits jumped 18 per cent in October to the highest value in 13 months, Statistics Canada said yesterday.

The housing starts results were slightly less than the 160,000 starts economists had expected. Still, they're running at a much stronger level than in April, when they sunk to the 118,500 mark.

“The improvement in housing starts continued in November,” said Bob Dugan, CMHC's chief economist. “Overall starts numbers were up due to a solid increase in singles starts.”

Multiple starts eased 1.7 per cent in November, CMHC said, to 71,300 units. Single starts rose 3.4 per cent to 69,800 units.

Read the full article by Tavia Grant  The Globe and Mail

http://www.theglobeandmail.com/report-on-business/housing-starts-hit-2009-high/article1392416/

Google now provides street view of Nanaimo