OTTAWA, August 11, 2009 — The seasonally adjusted annual rate¹ of housing starts decreased to 132,100 units in July from 137,800 units in June, according to Canada Mortgage and Housing Corporation (CMHC).

“The slight decline in July’s housing starts is mostly attributable to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Although July registered a decline, housing starts are expected to improve throughout 2009.”

Over the next several years, housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.

The seasonally adjusted annual rate of urban starts decreased 5.5 per cent to 113,500 units in July. Urban multiple starts decreased nine per cent to 61,000 units, while urban single starts moved down 1.1 per cent to 52,500 units in July.

July’s seasonally adjusted annual rate of urban starts increased 16.6 per cent in Quebec. Urban starts declined 17 per cent in the Prairies, 15 per cent in Ontario, 10 per cent in British Columbia, and 1.4 per cent in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units in July².

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.

For more information, call 1-800-668-2642.

1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) – that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

Source: http://www.schl.ca

With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada. It is estimated that this measure will cost $15 million in each of 2009–10 and 2010–11.

First-Time Home Buyers’ Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time home buyers, who must pay these costs on top of saving the money for a down payment.

To assist first-time home buyers with the costs associated with the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

It is also proposed that the First-Time Home Buyers’ Tax Credit be made available to existing homeowners in respect of a more accessible or functional home purchased by an individual eligible for the Disability Tax Credit (DTC), or for the benefit of a DTC-eligible person who is related to the individual purchasing the home.

It is estimated that this measure will cost $30 million in 2008–09, $175 million in 2009–10 and $180 million in 2010–11.
Source http://www.budget.gc.ca/2009/plan/bpc3c-eng.asp

Ekatarina Erchova
www.quebec-real-estate.com

Would like to inform the buyers that the program of backing the purchase of an apartment is financed by la Société d’habitation du Québec and by the city of Montreal and is directed to assist in purchases of dwelling on the island. La Société canadienne d’hypothèques et de logement also helps low income families.

In order to be entitled to get a sum of $ 6500 the price of new house should not be higher than $180,000 (including the tax and additional services). Or $235,000, if at the moment of buying a house you have children under 18 years in the family. In this last case financial help of $10,000is going to be provided. Besides if the dwelling is certificated by the Novoclimat (l’Agence d’efficacité énergétique du Québec), the highest price of the apartment to be subsidized, will be increased by $2500. This financial help is extended as one transaction. The buyer has to provide all documents before the 31st of December 2009.

Keep in mind that financial help can be extended to a leaser, who wants to buy a rented dwelling. In this case the building has to be fully inhabited, and the price of the realty and the land should not exceed the following sum:
$ 296000 – duplex,
$ 346000 – triplex,
$ 398000 – quadruplet and so on
Nevertheless, for all these kinds of property, buyer has to prove, that he has not had real estate in Quebec during the last 5 years. For more detailed information check the site: habitermontreal.qc.ca.

Also you can find the e-form to register in this program.

Get 10% from mortgage!

There is another variant of financing, the innovation! It helps families, which want to buy a realty in Montreal. The program Acces Condos gives a chance to get a credit from $ 1000 (10% of dwelling cost) to the future owners of condominium projects, which were prepared by la Société d’habitation et de développement de Montréal (SHDM). Also, you can use this sum as the first payment – advance.

You can repay the sum of the credit at any moment, as long as you remain the owner of this realty.

If you sell or lease the accommodation, you have to repay the credit SHDM + 10% of benefit of selling.

For example, you bought a condo for $ 150,000. At the same time, you used a credit from SHDM 10%, like the first payment or $15 000. So, the price of your apartment is $ 135,000. Five years later, you decided to sell the condo for $ 190,000, benefit is $ 40,000 ($190000 – $150,000). In this situation, for repay the credit you have to return $ 15,000 plus 10% from benefit: $ 4000 = $ 19,000 in all.

Remember, that details can changed depending on your private affairs.

For more detailed information use the site: accescondos.org.

“We analyzed the sales during the first 6 month of 2009, it shows that the market was really quiet in January and February. Obviosuly the buyers have reacted to the instability of the economy”, notes Dominic St-Pierre, the director of Services immobiliers de Royal LePage. The housing market shot up in spring, when there were buyers who were ready to pay upto $ 200 000. In May and June there was noted an increased demand on all kinds of real estate, and it gives an opportunity to predict good sales for the next 6 month.

The years from 2001 to 2007 were successful for salesmen, as houses were being sold quickly and easily. The end of 2008 and the beginning of 2009 is effected by the difficult condition of the economy and the housing market turns around in a favor of the buyer.

At present time the housing market is more stable and should be taken advantage of. Salesmen offer great prices and this is the perfect time for a buyer to choose the best house according to the needs and for a reasonable price.

The dealerships of buying and selling of the real estate will be more intensive first of all in the districts of Montreal like Dorval, Lachine, Beaconsfield and LaSalle/Verdun. But the increased amount of transactions will result the growth of prices for the real estate.

However, in more expensive districts like Saint-Bruno, Côte-Saint-Luc, Notre-Dame-de-Grâce or Westmount, prices will be kept more stable and probably will go down.