In June, 8.7% more homes were sold than in May. It’s the fifth straight month of increases — a 17.9% increase over June 2008.

“This rebound reflects the releasing of a pent-up demand by buyers who moved to the sidelines towards the end of last year,” said CREA chief economist Gregory Klump.

“Now there are signs the worst of the recession may be behind us, those people are emerging.”

The bounce back was strongest in British Columbia, where 39.8% more homes were sold in June this over the same month last year. According to the CREA report, Ontario was up 15.7%, Quebec 9.8%, Alberta 22.2%, Saskatchewan 25.2% and Manitoba 0.2%.

This surge in home buying came despite a decision by Canada’s five big banks last month to raise five-year fixed mortgage rates 40 basis points from 5.45% to 5.85%.

The decision was made despite the Bank of Canada’s efforts to keep borrowing low by pledging to hold interest rates at the historic low of 0.25% until the middle of 2010.

Mary Webb, a senior economist with Scotiabank, says the low long-term interest rates in the spring were a reflection of a global economy with almost no signs of growth and that was bound to change.

“Now we’re looking for a recovery, and not just in Canada but globally, and we’re seeing it already in China and we expect growth to strengthen later this year and early next,” Webb said.

With more people borrowing, banks are being forced to pay more to borrow the money they lend to home buyers, and that drives up long-term interest rates, she said.

http://www.torontosun.com/news/canada/2009/07/15/10136046-sun.html

brought by Alexander Moishe, Canadian Funding Corp CEO

OmniTRAX president and real estate developer, Patrick Broe …

A real estate developer?

Others undoubtedly saw that line and took in its full meaning. But I had focused on Broe as president of a U.S. railway company, OmniTRAX, who was bidding for BCRail. And who, rumour says, was offered a substantial consolation prize for losing out. Or being pushed out. Or something.

OmniTRAX had trains in the U.S., but had only just begun its quest for a Canadian empire. OmniTRAX had obtained ownership of Hudson Bay Railway and the Port of Churchill. What a deal that was, with the Arctic Ocean opening up because of global warming. Today is July 14, 2009 and today I think Pat Broe is a real estate developer who knows more than we do about how railways lead to real estate.

News item in BUSINESS WIRE for March 15, 2004: Broe begins land division with initial operations focused on Intermodal, Rail Related … Read about it HERE.

So OmniTRAX president, Pat Broe, is a major real estate developer. Early in 2002, he was meeting with, and corresponding with Gordon Campbell and promoting OmniTRAX as an attractive partner in Gordo’s vision for B.C. prosperity.

Broe, as OmniTRAX, already owned a small railway in the Okanagan, plus Hudson Bay Railway and the Port of Churchill. HBRY is 810 miles of former CN track, from The Pas to Churchill, Canada’s only Arctic seaport [www.portofchurchill.ca] Broe’s OmniTRAX took possession of the whole shebang, port and rail line, by paying $10. to the Canadian federal government in September 1997. Ten bucks.

Gordon Campbell, the Vancouver real estate developer, formed the BC government in 2001 and immediately began talking about selling BCRail. Pat Broe must have zeroed in very quickly.

Then Erik Bornman enters the scene by registering with Gordo’s B.C. government as a consultant lobbyist representing the Broe Companies. Bornman busies himself looking for B.C. investment opportunities in economic development and trade, such as rail transportation.

Soon Pat Broe, Dwight Johnson are having dinner with the B.C. Minister of Finance, Gary Collins. For some reason, police wanted to know what those men were discussing. There were RCMP inside the Villa del Lupa restaurant as well as outside, making videos of that meeting. Thank goodness.

Today is July 14, 2009 when various spectacular BC Rail properties can be scooped by CN for $1. Or so we hear.

I think that maybe Collins, Broe, and Johnson were talking, in a roundabout way, about land, lots and lotsa land to be had for 1/10th the cost of the Hudson Bay Railway plus Port of Churchill.

Pat Broe is a real estate developer.

- BC Mary.

“”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”"”

lynx has left a new comment on your post “Give me land, lots of land, under starry skies above …”:

In light of what BC Mary has just written – here is an excerpt from hansard between Joy MacPhail and Gary Collins: (Read between the lines and think real estate deal and it reads a whole new way.)

J. MacPhail (Leader of the Opposition): I have two concluding questions. These are a follow-up from my questions around lobbying. The minister said he never met with Pilothouse. Did he ever meet with anyone from Omnitrax itself?

Hon. G. Collins (Minister of Finance): Yes. I have met with Pat Broe prior to the B.C. Rail transaction process starting. I met with him once after the B.C. Rail transaction had completed.

J. MacPhail: Boy, I’m sure glad I get the questions right. Is the minister aware of any of his staff that met with Omnitrax on his behalf?

Hon. G. Collins: I’m not aware of that, whether it would have happened or not — certainly not on my behalf. I wouldn’t have directed anybody to do that.

J. MacPhail: And Pat Broe is whom?

Hon. G. Collins: He’s the owner, president and CEO, I think, of Broe Companies, of which Omnitrax is a subsidiary.

J. MacPhail: What were the two meetings about?

Hon. G. Collins: The first meeting was, “Hi, this is who I am,” on his part. “I’d like to come and invest in British Columbia. I think what you guys are doing makes sense. It looks like a great place for me to invest. I’m interested in all sorts of things.” Just a general get-to-know-you type of meeting. I have those regularly with potential investors in British Columbia, if they want to come and talk. It’s more of a welcome, get-to-know-you, individual meeting.

After the transaction had closed, Mr. Broe wanted to tell us that despite not winning the B.C. Rail contract,, he would be interested in continuing to be part of British Columbia, if he could — similar to the prior meeting.

J. MacPhail: Was Mr. Basi present at either of those meetings?

Hon. G. Collins: No.

J. MacPhail: Who staffed the minister?

Hon. G. Collins: I rarely take staff with me. I think it’s a waste of their time for the most part when I travel or when I meet with them. Sometimes I do; sometimes I don’t. It depends on what the need is. I had a dinner, and I didn’t feel I needed staff at a dinner.

J. MacPhail: Was the minister aware that Omnitrax was bidding on the B.C. Rail spur line to Roberts Bank during that period of time?

Hon. G. Collins: No, I wasn’t. I knew they were generally looking to do investments in British Columbia. We certainly didn’t talk in any great detail about any of their proposals. Rather, it was a general discussion of things they might do in British Columbia. They were still interested in British Columbia. They were disappointed, obviously, that they weren’t the successful bidder on CN, but they wanted to continue to have a presence in British Columbia. They were looking for things they might do.

There are a whole range of things they might do. I hope at some point that they are part of that.

http://bctrialofbasi-virk.blogspot.com/2009/07/give-me-land-lots-of-land-under-starry.html

reviewed by Moishe Alexander, CFC Canadian Funding Corp CEO

RBC Economics says home affordability recorded some of the biggest quarterly improvements on record in the first quarter. Senior economist Robert Hogue says with market turmoil decreasing and credit flows increasing, resale activity has “rallied impressively.”

He says what is most impressive is how widespread this rebound has been, “with all major cities in Canada experiencing a revival.”

Declining costs of home ownership during the last year were driven by significant cuts in mortgage rates.

In the first quarter, says RBC, monthly payments on a typical detached bungalow fell by close to 17 per cent from a year earlier.

RBC says the proportion of pre-tax household income needed to own a home improved across all housing segments.

It says the benchmark detached bungalow moved to 39.4 per cent, the standard townhouse to 31.9 per cent, the standard condo to 27.1 per cent and the standard two-storey home to 44.7 per cent respectively.

RBC’s affordability measure for detached bungalows in the largest cities were 62.6 per cent in Vancouver, 45.9 per cent in Toronto, 39.1 per cent in Ottawa, 36.5 per cent in Montreal and 35.1 pr cent in Calgary.

“Housing markets generally appear to be on the mend in Canada but the road to full recovery still has obstacles,” added Hogue.

He added that further improvement in affordability will depend on greater gains in family income.

http://www.google.com/hostednews/canadianpress/article/ALeqM5iE0WgUzhh7xwb3MGbU8RjqZkWe_A

reviewed by Moishe Alexander, Canadian Funding Corp CEO

“Declining costs of home ownership during the last year were driven by significant cuts in mortgage rates along with the federal government taking an active role in supporting the mortgage securities market,” RBC said. “In the first quarter, monthly payments on a typical detached bungalow in Canada had decreased by close to 17 per cent from a year earlier.”

The average cost to own a bungalow in this year’s first quarter was $1,350 a month, down from $1,520 in 2008’s fourth quarter and $1,620 in last year’s first quarter.

RBC’s affordability index — the percentage of pre-tax monthly household income needed to maintain a home, including mortgage payments, utilities and property taxes — improved across all housing segments in Canada.

The average affordability for a bungalow in the first quarter was 39.4 per cent, down four points from 2008’s fourth quarter. It was 44.7 per cent for a standard two-storey (down five points), and 27.1 per cent for a condominium (down 2.8 points).

The average cost of maintaining a detached bungalow in Vancouver was 62.6 per cent of household income during the first quarter, while in Toronto it was 45.9 per cent, RBC said. Ottawa affordability was 39.1 per cent, Montreal 36.5 per cent, Calgary 35.1 per cent, and Edmonton 34 per cent.

From a provincial standpoint, RBC said housing affordability in British Columbia saw its biggest improvements since 1991, with the percentage of income required for various housing types dropping between 3.4 and 7.4 percentage points during the quarter. In Ontario, RBC said housing sales activity has returned to levels seen in mid-2008, largely as a result of improved affordability.

“With the turmoil in financial markets partially subsiding and the flow of credit increasing, home resale activity has rallied impressively since the late winter,” said Robert Hogue, RBC’s senior economist. “What’s most impressive is how widespread this rebound has been, with all major cities in Canada experiencing a revival.

“”With property values stabilizing and the effect of the steep drop in mortgage rates likely behind us, further improvement in affordability will depend on greater gains in family income,” Hogue added. “Those gains will be dictated by the speed of the economic recovery expected during the second half of this year.”

The RBC’s assessment follows a separate report this week from real estate agency Royal LePage that said improved housing-market conditions in this year’s second quarter points to a better overall performance in 2009 than previously anticipated.

Also, a number of local markets saw sharp spikes in sales last month, including Toronto, Ottawa and Edmonton, where new sales records were set for June.

Percentage of gross income required to own a standard bungalow in first quarter of 2009 (change from previous quarter):

British Columbia 59.0 (-6.0)

Alberta 33.2 (-4.6)

Saskatchewan 42.0 (-3.3)

Manitoba 35.3 (-2.9)

Ontario 38.6 (-4.2)

Quebec 32.3 (-2.5)

Atlantic 31.3 (-2.9)

Canada 39.4 (-4.0)

Source: RBC Economics

http://www.canada.com/Business/Home+ownership+getting+more+affordable/1771375/story.html

brought by Moishe Alexaneder, CFC Canadian Funding Corp CEO

“Housing is a priority for our government,” said Parliamentary Secretary Gourde. “People across Canada, including seniors, persons with disabilities, First Nations, and those living in Canada’s North, will benefit from this investment that will help to ensure that we continue to offer safe and affordable housing to Canadians.“

Canada’s Economic Action Plan includes more than $2 billion to build new and renovate existing social housing. Of the $2 billion: $1 billion is for renovations and upgrades; $475 million is for low-income seniors and persons with disabilities; $400 million is for on-reserve communities; and $200 million is for housing in the North.

“Since our government made this announcement in January, we have been making real progress.” added Parliamentary Secretary Gourde. “The spin-off benefits are tremendous. We’re putting Canada’s economy back on the path to growth and making a real and lasting difference for Canadians coast-to-coast-to coast.”

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

ST ÉTIENNE DE LAUZON, June 6, 2009

Canadian Funding Corporation reports that the Honourable Lisa Raitt, Canada’s Minister of Natural Resources, and Ed Komarnicki, Parliamentary Secretary to the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), made the announcement today at the Canadian Centre for Housing Technology.

“Our Government is investing in more than just clusters of energy-efficient homes — we’re creating cost-efficient, sustainable neighbourhoods,” said Minister Raitt. “Building communities that use new, clean-energy technologies will create high-quality jobs for Canadians while protecting and preserving our environment.”

The EQuilibrium™ Communities Initiative will provide financial, technical and promotional assistance to sustainable community projects chosen through a national competition. It will showcase the talents and innovation of Canadian residential developers, planners, designers and municipalities. The initiative is being led and funded equally by NRCan and CMHC.

“The EQuilibrium™ Communities Initiative will highlight the talents and innovation of Canadian residential developers, planners, designers and municipalities as leaders in sustainable housing and community development,” said Mr. Komarnicki. “These communities will integrate sustainable housing, infrastructure and land-use planning to help Canadians balance their housing needs with those of the natural environment.”

A call for project submissions will be issued this summer, inviting developers, with their teams of planners, designers, and municipalities, to submit project proposals. Winning teams will develop and showcase neighbourhoods that are more sustainable and energy efficient than most existing communities. Improvements will be achieved in the areas of energy use, water efficiency, environmental protection, land-use planning, clean-energy transportation and affordable housing.

For Broadcast Use:

Communities across Canada will benefit from better energy efficiency and improved environmental impact, thanks to a new initiative launched today by the Government of Canada. The new $4.2 million, EQuilibrium™ Communities Initiative will seek to improve community planning and develop healthy sustainable communities that are energy-efficient, economically viable and vibrant places to live. A call for project submissions from developers will be issued this summer.