New home prices surprise on the upside

June 15th, 2007

CanWest News Service

In another sign of an impending rate hike from the Bank of Canada next month, Statistics Canada reported Monday that the cost of new housing rose substantially - 0.8% - in April from the previous month, outstripping most analysts’ predictions of about 0.3%.

As a result, Statistics Canada added, the new housing price index climbed to 150.5. Compared to 12 months ago, contractors’ selling prices were up 8.9%, down slightly from the 9.3% increase recorded in March.

Of the 21 metropolitan areas surveyed, 12 registered an increase, with Edmonton leading the way at 4.4%, the agency said. This was the result of high costs for materials and trade labour, high demand, and extended construction periods, it added. Regina (2.2%), Saskatoon (2.1%) and Calgary (2.0%) followed.

Noteworthy gains were also observed in Halifax, Greater Sudbury and Thunder Bay and Vancouver, the agency said.

Five metropolitan areas registered no monthly change, with Victoria (down 0.9%) recording the largest decrease due to a moderating market. Prices in St. John’s, Saint John, Fredericton and Moncton, and Charlottetown also declined, Statistics Canada said.

Edmonton (up 40.5%) posted the largest 12-month increase, followed by Calgary (27.4%), Saskatoon (24.9%), Regina (17.3%) and Winnipeg (6.9%), the agency said.

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Another round of mortgage rate hikes

June 14th, 2007

CBC News

Mortgage rates are rising for the fourth time in four weeks as the cost of borrowed money increases.

RBC Royal Bank and Bank of Montreal announced Wednesday they would be boosting their mortgage rates by up to a fifth of a percentage point. Other banks followed Thursday with hikes of their own.

As of Friday, a five-year closed mortgage at all major banks will carry a posted rate of 7.44 per cent — an increase of 0.15 percentage points.

That’s the highest posted rate for a five-year mortgage — one of the most popular mortgage terms — since April 2002, according to Bank of Canada figures.

Banks normally discount their posted rates for most borrowers by at least a full percentage point.

But the hike to the posted rates also means that the discounted rates will face similar increases.

The posted five-year mortgage rate will have gone from as low as 6.59 per cent to 7.44 per cent since May 17 — a jump of 0.85 percentage points.

Last month, the Bank of Canada sent unmistakable signals that borrowed money was about to get more expensive.

Yields in the bond market, where mortgage financing is determined, have been rising since the central bank delivered a strong hint that it would hike interest rates — and perhaps more than once this year — to fight inflation.

In a speech Wednesday, Bank of Canada governor David Dodge repeated the language he used back in May to warn of future rate hikes. “Some increase in the target for the overnight rate may be required in the near term to bring inflation back to the target,” he told an audience in St. John’s.

The yield on the benchmark two-year Government of Canada bond was 4.75 per cent in Wednesday afternoon trading. It was just 4.18 per cent at the start of May.

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5-year mortgage rates as low as 5.74%!!!

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Waterfront Corporation Design Competition for Lower Don Lands

June 14th, 2007

From Canadian Architect

The Toronto Waterfront Revitalization Corporation announced the names of teams that will be competing in the design competition for the Lower Don Lands, a 40-hectare area located at the mouth of the Don River and the entrance to the Port Lands.

The teams are:
• Stoss, Boston; Brown + Storey Architects, Toronto; Zas Architects, Toronto
• Michael Van Valkenburgh Associates, New York; Behnisch Architects, Los Angeles; Greenberg Consultants, Toronto; Great Eastern Ecology, New York
• Weiss/Manfredi, New York; du Toit Allsopp Hillier, Toronto
• Atelier Girot, Zurich; Office of Landscape Morphology, Paris; ReK Productions, Toronto
• Hargreaves Associates, New York; Polshek Partnership, New York; ENVision – The Hough Group, Toronto; Dillon Consulting Ltd., Toronto

“The quality of the teams is outstanding,” said John Campbell, TWRC’s President and CEO. “The Lower Don Lands is a complex ecological, urban area and we are confident that each of the teams has the expertise and the experience to create something truly magnificent.”

The Lower Don Lands area, which runs from the Parliament Street Slip east to the Don Roadway and from the rail corridor south to Commissioners Street, is a critical connection between the three emerging waterfront communities in the East Bayfront, West Don Lands and the Port Lands.

There are a number of infrastructure, urban design and transportation initiatives in this area that are required for waterfront revitalization — the naturalization of the mouth of the Don River, flood protection for the Port Lands, precinct planning for the area between Parliament Street and Cherry Street and extending Queens Quay from Parliament to Cherry.

Until now, there has not been a comprehensive process to produce an overall vision for integrating these various waterfront revitalization projects and addressing the complicated infrastructure challenges this area presents.

The goal of the Innovative Design Competition is to produce a unifying and inspiring concept for this long-neglected area that can provide common ground for three concurrent Environmental Assessments (EA’s), including the Don Mouth Naturalization and Port Lands Flood Protection EA; the Queens Quay Boulevard Extension EA; and the Lower Don Transportation Infrastructure EA.

The intent is to produce a bold and compelling concept for the Lower Don Lands that makes the river a central feature while at the same time providing for new development and new linkages to the rest of the city.

The objectives of the design competition include:
• promoting sustainable development
• naturalizing the mouth of the Don River
• creating a continuous riverfront park system
• enhancing the Martin Goodman Trail
• providing for harmonious new development
• making transit a priority
• developing a gateway into the Port Lands

Following an on-site briefing, the teams will have eight weeks to complete their designs. At the briefing, the teams will receive input from a number of stakeholders including the Toronto and Region Conservation (TRCA), City of Toronto planning, parks and transportation staff, the Toronto Port Authority and a community advisory committee established by TWRC specifically for the competition.

The final designs will be on display at the BCE Place Galleria. A jury to be appointed by TWRC will select the winning design.

TWRC was created by the federal and provincial governments and the City of Toronto to lead the $17 billion renewal of Toronto’s Central Waterfront. The development of the first new waterfront community, West Don Lands, is scheduled to start in 2007.

For more information on the Lower Don Lands Design Competition, please visit www.towaterfront.ca.

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