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The Independent, Canadian Statesman Weekender, Bowmanville, Saturday, February 19,1994 17 Housing Starts See Decline in January January multiple units construction construction pulled total housing starts down 14.9 per cent in January, reported Canada Mortgage and Housing Corporation. Corporation. Starts fell to a seasonally adjusted annual rate (SAAR)* of 142,500 units from a revised level of 167,400 units in December. Starts of multiple units in urban centres fell 30.6 to 49,700 units ! (SAAR) in January from a strong 71,600 units SAAR in December. At ' the same time, single-detached dwellings dwellings fell 4.4 per cent to 69,200 units (SAAR), from 72,400 last December. "The January results reflect a lack of multiple starts in British Columbia and Ontario. January results in B.C. likely indicate a pause following strong levels in the previous months. In Ontario, the January results are mainly due to a drop in government assisted new construction following a few very active months at the end of 1993," said Gilles Proulx, Chief Economist at CMHC's Market Analysis Analysis Centre. "January results for single- detached construction reflect the normal normal ups and downs of construction and the bitterly cold temperature. But prospects for the next few months remain remain positive due to low mortgage rates, an improving economic environment environment and a firm resale market," Proulx added. Urban housing starts in Ontario fell to 34,400 units (SAAR) in January, January, from 47,600 units in December. The decline reflected lower starts of government-assisted multiple units. Starts of single-detached fell slightly from the December results. British Columbia urban starts showed the largest drop to 31,200 units (SAAR) from 45,400 units in December. Multiple unit construction has been at near record levels at the end of 1993. Starts of single- detached edged up. Construction continued to recover gradually in Quebec with a rate of 27,000 units (SAAR) started in January, January, up from 23,500 units in December. December. Both types of dwelling units contributed contributed to the higher levels, bouncing up from depressed levels at the end of 1993. Construction advanced further to an annual rate of 21,000 units to the Prairie region's urban centres during January, up from 20,200 units in December. December. This resulted from higher starts of multiples for Alberta, in spite of an emerging surplus of new units. Total Alberta starts rose to 19,200 units SAAR. By contrast, lower construction was reported in Manitoba, to 1,200 units, and Sas katchewan, to 600 units. Urban starts were 5,300 units (SAAR) in the Atlantic region, down from 7,300 units the month before. Prince Edward Island alone reported higher starts (to 600 units). Construction Construction fell in all three other provinces: Patriotism Day In the presence of three hundred flag waving children at Ottawa's Mutchmor Public School, Kinsmen and Kinette Clubs of Canada Presidents Presidents John and Dodie Glynn, unveiled unveiled plans for "Raise the Flag Day", a national patriotism movement, movement, to be held on Saturday May 14th. As a tribute to the importance of Canadian symbols, the announcement announcement was made on the 20th anniversary anniversary of Heritage Day, through a joint effort of Heritage Canada, a national to 2,600 units in Nova Scotia, 1,300 in Newfoundland and 800 in New Brunswick. * The SAAR is a monthly figure that is adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. Set for May 14 nonprofit organization that promotes heritage, and the Kinsmen association. association. The two major components for Raise the Flag Day 1994 will be the Municipal Flag Program, in which communities from around the country country are encouraged to raise their Canadian Canadian and municipal flags on May 14, then forward the municipal flag to the Kinsmen for a mass parade in Ottawa on July 1st, and the 127,000 Flags for Canada Challenge. CMHC Predicts Strong Markets For Two Years Housing starts are expected to total total 162,600 units in 1994, and rise to 171,000 in 1995, reported Canada Mortgage and Housing Corporation (CMHC) in its first quarter National Housing Outlook. Total starts for 1993 were 155,443. "Economic expansion, a stronger job market and low interest rates will help boost Canada's housing industry over the next two years," observed Gilles Proulx, CMHC's Chief Economist. Economist. "However, these positive factors factors may be offset somewhat by smaller than expected population growth, reducing demand for new house construction. An over-supply of rental apartments in some areas will also slow the pace of recovery." Much of the gain will come from the construction of single-detached homes. The singles market will benefit benefit from the return of repeat buyers who will be motivated by the economic economic recovery and affordable prices. prices. Multiple starts in 1994 will edge up only slightly. High vacancy ratés in most urban centres will put a damper on construction of new rental units. The average national vacancy rate is expected to shrink to 4.6 per cent in 1994 from 4.9 per cent in 1993, and to 4.0 per cent in 1995. Resale Market and House Prices The resale market will increase by more than 4 per cent this year and close to 2 per cent next year in response response to greater affordability and stronger employment. Total resales through the Multiple Listing" System are expected to reach 315,300 units in 1994 and 320,800 units in 1995. Price increases, both for new and existing houses, will remain minimal this year. Resale home prices will climb 4.1 per cent to a national average average of about $160,000 in 1994. New home prices will rise only 2.0 per cent this year and 2.8 per cent in 1995 in an effort to compete with the resale market. Provincial Outlooks Ontario will take the lead this year with close to a 20 per cent increase in new home starts as job growth picks up. Housing starts in Quebec are also projected to increase, but moderately this year, for the first time since 1988. Constmction in British Columbia will be held back by land supply constraints and cautious lending practices. practices. Alberta will experience a downward adjustment due to lower demand this year. Stronger demand for single housing from move-up buyers in Manitoba and Saskatchewan Saskatchewan will stimulate these markets. New construction will decrease in the Atlantic provinces with the exception exception of Prince Edward Island. A slowdown in the multiples market will be primarily responsible for low- " cr construction in the Atlantic region. Real Estate with Betty Smith MORTGAGES - BASICS FOR BEGINNERS A MORTGAGE is like a loan, using a home or Real Estate as security or collateral for that loan. PRINCIPAL - the amount of money borrowed (the difference between your downpayment and the purchase price of the house). INTËREST - expressed as a percentage, it's the amount, you pay the lender for the use of his funds. MORTGAGE PAYMENTS - Most commonly made monthly, weekly or bi-weekly. Each payment consists of two parts (blended payments), some reduces the principal and some the interest (P.I. payments). P.I.T. PAYMENTS - as above, plus the applicable amount of realty tax. AMORTIZATION PERIOD - the total time to repay the entire loan (often 25 year period). ■ TERM - the length of the agreement within the amortization period - often 1- 5 years. A new mortgage may be renegotiated at the end of each term at the then current interest rates. CONVENTIONAL LOW RATE MORTGAGES - the principal represents 75% or less of the cost of the house (25%. or more down- payment). HI RATIO INSURED MORTGAGES - the principal represents up to 90% or 95% of the cost of the house and this mortgage must be insured for the lender by C.M.H.C. (more about this in a future column.) Thinking of buying or selling in the near future? Please meet with me first. I can be reached at Family Realty 2000 Ltd. 623-2000 (24 hour pager). NEWCASTLE 85 King St. W. 987-4733 NATIONAL REAL ESTATE SERVICE BOWMANVILLE 214 King St. E. 623-4445 NRS EDVAN REALTY LTD. 686-0477 OPEN HOUSE BLITZ Sunday, February 20th » •' i:« • , X ÿ 12 Princess St. Orono $109,000. 1 -3 p.m. 1725 Brownsville Rd. Newcastle $112,000. 2 - 4 p.m. 3813 Hwy. #2 Newcastle $149,000. 2-4 p.m. 9 Wiggins Dr. Ajax $234,900. 2-4p.m. Over 30 Years Quality Real Estate Service 234 King Street East, Bowmanville Telephone 623-3393 Toronto Line 686-1035 REALTOR 1 COUNTRY BACKSPLIT - ORONO SAT. and SUN., FEB. 19 and 20,2 - 4 p.m. 33 ROSER CRESCENT, BOWMANVILLE 4 bedroom home. A must see. 1st owners. Shows pride of ownership. $134,500. Helen Bonnet* 623-3393 or 623-8536. 58 ACRES- HAMPTON PRIME COMMERCIAL CORNER 8,000 sq. ft. building in downtown core Bowmanville. Excellent potential. 279,000. Power of Sale. Buy before prices go up. Call John Shewchuk* 623-3393 or 623-5927. COMMERCIAL BUILDING Spotless 4 level home, family room with woodstove, 3 + 1 bedrooms, hardwood floors. Must be sold. $159,900. Call Charlie Reid* 623-3393 or 983-5914. RozminAWADIA* 623-2207 Helen BONNET 1 623-8536 Josie DOXTATER 11 623-9557 Iris FOWLER 1 (705) 932-2621 Arieen HANDLEY 1 797-2306 Chet JACKSON 1 263-8377 Joe JERONIMO 11 ; 623-6920 Charlene McAULEY 797-3324 Charlie REID 1 983-5914 John SHEWCHUK 1 623-5927 Doreen TILLSON 1 432-4804 Donna TURNER 1 786-2058 Torn TURNER 1 623-5510 Ann VAN DYK 1 623-4638 Terry WITHERSPOON 1 983-8296 Ideal nursery, good arable soil, good water supply, plus 2 storey century brick home. Great long term potential for estate lots. $295,000. Call Charlie Reid* 623-3393 or 983-5914. FIRST CLASS STORE SPACE Excellent parking, good traffic exposure. Asking $12.00 sq. ft., negotiable. Bowmanville. Call John Shewchuk* 623-3393 or 623-5927. Incredible value in downtown Bowmanville. 6 rental units with parking. $212,000. Power of Sale. You can't afford to miss it. Call John Shewchuk* 623-3393 or 623-5927. EXCELLENT OFFICE SPACE $300.00 per month includes utilities. Available immediately. Bowmanville. Call John Shewchuk* 623-3393 or 623-5927.