March 2011 Ontario Economic Fundamentals

[Ally]

Durham Region politicians express support for Elliott's 407 resolution



QUEEN`S PARK ` PC MPP`s Christine Elliott (Whitby-Oshawa), Jerry Ouellette (Oshawa) and John O`Toole (Durham), were joined by Oshawa Mayor, John Henry today in a further effort to hold the McGuinty Government to their word for completing the extension of 407 Highway to Highway 35/115 by 2013.





Despite the Federal ` Provincial FLOW Agreement dated March 2, 2007 in which the McGuinty Government pledged to extend Highway 407 eastward from Brock Road to Highway 35/115 in its entirety by 2013, they are now proposing to end the highway at Simcoe Street in Columbus, part of the City of Oshawa.





Read the full article here.

 

[Ally]

Auto sector to shoulder big chunk of GDP gains




Forget about the thriving oil patch, booming condo markets across the land or the arrival of the new RIM PlayBook next month: An old standard will give the Canadian economy a major boost in the first quarter ` the auto industry.




As the industry recovers, the ripple effects of two companies gearing up to produce two new models in the manufacturing heartland of Southern Ontario are already being felt across the region.





Read the full article here.

 

[Ally]

Ford pitches private financing plan for Sheppard subway extension




In what amounts to the biggest risk of his young mayoralty, Rob Ford is proposing to extend Toronto`s Sheppard subway with a private financing deal that would be a Canadian first.




The mayor`s office has presented a plan to the transportation authority Metrolinx to have a private consortium design, build and ideally, maintain, the city-owned extension.





Read the full article here.

 

[Ally]

Can we reinvent the suburbs?




When most people look at suburban intersections, they see malls, gas stations and parking lots. Cliff Korman sees potential.




The Toronto architect specializes in `greyfield` development. Greenfield developers build on farmland or other undeveloped space. Brownfield developers build on old industrial lands. Greyfield developers exploit the grey asphalt of suburbia. The aim is to unleash the value of underused suburban land, replacing parking lots, low-rise malls and sprawling warehouses with new apartment towers, office buildings and shopping streets.



Read the full article here.

 

[Ally]

Ontario shoots down Ford's request for more than $350-million




The McGuinty government is rejecting out of hand a request for more than $350-million in financial help from Toronto Mayor Rob Ford, who frequently criticized his predecessor for begging the province for money.




`It`s up to them to chart their own course,` Premier Dalton McGuinty told reporters Monday. He said the province is running a record deficit, forecast to hit $18.7-billion this fiscal year, after borrowing money to help stimulate the economy and bail out the auto sector during the recent global recession.





Read the full article here.

 

[Ally]

Automotive employment stabilizes: Analyst






WINDSOR, Ont. ` Employment in the Canadian automotive assembly and parts sector appears to have finally stabilized, according to a report by DesRosiers Automotive Consultants.







Although employment levels are far below their peak levels of 2000, the job picture `is no longer deteriorating,` said Dennis DesRosiers, Toronto auto analyst.







The sector has generated `low single digit growth and only for the last eight months, but growth nonetheless.`







The number of auto industry jobs totalled 109,333 in 2010, nearly identical to the 109,117 jobs in 2009, the report said. Last year`s employment is still down by about 60,000 workers from 171,982 in 2000.






Read the full article here.

 

[Ally]

Georgian Triangle sales activity strong in February



Residential sales activity recorded through the MLSÂ System of the Georgian Triangle Real Estate Board rose above year-ago levels for the first time in 10 months in February 2011. The average price also shot to the highest level on record.





According to statistics provided by the Board, home sales numbered 101 units in February. This is a 10 per cent gain from February 2010, and also stands above the five-year average for February sales. On a seasonally adjusted basis, activity rose eight per cent compared to January, and reached the highest level since last May.





`The rebound in activity in February marks a welcome departure from the declining trend we`ve seen in recent months,` said Rob Dubien, President of the Georgian Triangle Real Estate Board. `Even though February is one of the lower volume months of the year for sales, the improvement in demand hints at the possibility of a change in momentum heading into the busy spring buying season.`





The average price for homes sold in February 2011 was $339,830, jumping 22 per cent from the same month last year. This is by far the highest average price on record, but much of the large increase can be attributed to a jump in activity priced above $500,000 in February.



Read the full article here.

 

[Ally]

Is it too hard to evict lousy tenants?




Landlords think it takes too long to evict tenants, while tenants think the deck is stacked the other way. Who`s right?




The issue was in the news recently with an Ontario group representing landlords releasing a study that claimed the eviction process is broken and requires immediate changes.




The study looked at 1.3 million provincial rental units and found that 95 per cent of tenants pay their rent on time. The remainder cause the problems and it was this group that The Federation of Rental Housing Providers of Ontario wants to tighten the rules for.





Read the full article here.

 

[Ally]

Are condo prices set to fall?




The condominium market in Canada shows `emerging signs of oversupply` but there is no crash imminent, says a report by the Bank of Nova Scotia.




`We have a situation of rising multi-housing unit inventory which has been trending up since 2008,` Adrienne Warren, senior economist for the bank told a real estate forum Tuesday. `The current outstanding stock of unsold new homes is higher than average.`




The supply overhang means that `soft pricing conditions` for the condo market will characterize 2011, said Warren, especially `if first-time homebuyer demand weakens more than expected.`





Read the full article here.

 

[Ally]

Ottawa building permits surge 80%






The seasonally adjusted value of building permits issued in Ottawa surpassed $233 million in January, up from just over $129 million the previous month.




The value of non-residential permits tripled to just over $119 million, up from $38.9. The largest gain was a whopping 4073.5-per-cent increase in the institutional class, which recorded $63.4 worth of building permits.




Separate city records show a $62-million permit was issued in January for construction of the University of Ottawa`s new 15-storey academic building.





Read the full article here.

 

[Ally]

2010 a near-record year for condo sales in the GTA




The year 2010 ended up being close to a record for condo sales in the GTA, according to Urbanation, which tracks the Toronto condo market. Strong fourth quarter sales of 6,280 units helped push the total of new and resale condominium sales to 37,041 for the year, just short of the record 38,306 set in 2007. The 2010 results represent a 20 percent increase over 2009's volume of 30,939 new and resale condominium units sold, and 27 percent over 2008.




Urbanation's Ben Myers reports that construction of new condominiums in Toronto is at record levels, with nearly 35,000 units now under construction in 132 different projects. A Toronto record of 18,221 highrise condos were started last year, more than twice as many as in 2009.




Myers predicts that 2011 will see a slight moderating in growth, with approximately 16,000 sales of new units and 17,000 resales.




Highrises accounted for more than half the new home sales in the GTA for the first time, according to RealNet Canada Inc. Ten years ago, they made up about a quarter of all new home sales. But that has changed as single-detached homes become out of reach for many buyers.





Read the full article here.

 

[Ally]

Can transit transform a region?




WATERLOO REGION ` Nine years ago, regional politicians abandoned their caution and embraced rail transit as a tool to shape land use.




They were encouraged in part by two supportive factors. In 2000, regional council assumed control of transit. Soon after, senior governments put cash on the table for transformative projects.




Today, council is poised to install street-level electric trains in Kitchener and Waterloo and fast buses in Cambridge, funded in part by up to $565 million from senior governments. A final decision looms in June when council considers 10 revised options, including rapid buses.





Read the full article here.

 

[Ally]

Brantford real estate market still 'soft'




Home sales in February remained below year 2010 levels, says the president of the Brantford Regional Real Estate Association.




However, the year-over-year decline last month was considerably smaller than it had been in January, Sam Miron said in a prepared statement.




"Demand remained soft in February, but it was up from the low in January," he said.




"Looking at how activity stacks up against history, it (last month) was actually a little bit above the long-run average for February sales."



Read the full article here.

 

[Ally]

Big changes on the way for Liberty Village, Toronto (eventually)





On Tuesday night Liberty Village residents and other interested parties got a glimpse at some pretty significant changes that could be in store for the neighbourhood in the coming years. The second of two open houses devoted to Environmental Assessments in the area (the first was back in June), highlights included proposals to build a pedestrian/cyclist tunnel across the Lake Shore rail corridor, the construction of new Dufferin bridges over the Gardiner and rail lines, and the creation of a new street at the south end of the neighbourhood.



Of the three projects, I suspect the first two are the most interesting from the perspective of the casual observer given that the Dufferin bridges are in need of replacement mostly on account of their age, and the overall landscape won't change much when they're replaced (although the Dufferin Gates might be slightly repositioned).



Read the full article here.

 

[Ally]

Hidden fees hike cost of new homes in GTA by as much as 30%





New home buyers in the GTA are being saddled with hidden fees that threaten to price buyers out of the market, with as much as 30 per cent of the purchase price going directly to government coffers.




But the construction industry is pushing back, saying the municipalities` appetite for development charges could derail the new-housing market by driving the average price beyond the means of most buyers just as interest rates are about to move higher.





Read the full article here.

 

[Ally]

Ontario speeds up Highway 407 expansion schedule





TORONTO ` The Liberal government is stepping up the schedule for extending Highway 407 east from Brock Road in Pickering to Harmony Road in Oshawa by 2015.



The toll highway will be extended east to link up with Highways 35-115 by 2020.




There will also be 10 kilometres of north-south highway, the West Durham Link, to connect Highway 407 East and Highway 401 by 2015.




The government says extending the first phase to Harmony Road in Oshawa instead of ending it at Simcoe Street will ease congestion on city streets.





Read the full article here.

 

[Ally]

Ford allies propose waiving development charges in poor neighbourhoods




After years of channelling public dollars to social services in Toronto`s 13 poorest neighbourhoods, the city should try to kick-start revitalization by waiving development charges on new private-sector projects in those areas, according to a proposal tabled in council by two of Mayor Rob Ford`s closest allies.




`The idea is a very simple one,` says economic committee chair Michael Thompson (Scarborough Centre). `A lot of times it appears that a lot of development takes place in the core. [But] when it reaches the suburbs, it doesn`t reach the priority neighbourhoods.`




The proposal to waive charges seems at odds with the mayor`s plan to rely on development levies to entice private investors to build the Sheppard subway. Planning experts also wonder whether a market-minded approach will prove to be enough of a carrot. And critics warn that the foregone revenue could affect services to those same communities.





Read the full article here.

 

[Ally]

U-Haul names Toronto as top 20 Canadian destination



PHOENIX, Feb. 16, 2011 /CNW/ -- U-Haul International, Inc., today released the results of the annual 2010 U-Haul National Migration Trend Report titled "The 2010 Top 25 Canadian Destination Cities." According to moving data reflective of nationwide statistics for calendar year 2010, Toronto was ranked No. 1 for the ninth year in a row, while Calgary came in at second for the seventh year in a row. Montreal and Edmonton took third and fourth respectively for the second year in a row. Ottawa, Vancouver, London, Kitchener, Hamilton and Mississauga rounded out the top 10 for the second year in a row.





"Since 1955, U-Haul has built a long and proud history of helping families move and store their belongings in Canada," stated U-Haul President of Phoenix Operations John "J.T." Taylor. "Now more than ever, we are proud to offer Canadian families who need moving services the increased convenience of our locations, which makes for a shorter distance to travel when moving. This not only makes their move easier but also has the positive effect of reducing the amount of carbon emissions released into the atmosphere and saves our customers money."





The ranking reflects destinations for movers traveling more than 50 miles and considers every city in the country, regardless of size. However, the data is not stated as a percentage of population and is not reflective of overall growth.





Read the full article here.

 

[Ally]

Why rent increase rules may be an election issue




Toronto MPP Cheri DiNovo wants to make changes to the way residential rents can be increased that will make it almost impossible for a landlord to raise the rent above the guidelines without the approval of the Landlord and Tenant Board.




DiNovo, who sits for the NDP in Parkdale-High Park, has introduced a private member`s bill that proposes three key changes to the existing law.




As it stands now, a landlord can increase the rent by 0.7 per cent, or $7 for every $1,000 this year, in most cases. The landlord has to give you 90 days notice of the increase and it can only be increased once every 12 months.





Read the full article here.

 

[Ally]

Can transit transform the Waterloo region?




WATERLOO REGION ` Nine years ago, regional politicians abandoned their caution and embraced rail transit as a tool to shape land use.




They were encouraged in part by two supportive factors. In 2000, regional council assumed control of transit. Soon after, senior governments put cash on the table for transformative projects.




Today, council is poised to install street-level electric trains in Kitchener and Waterloo and fast buses in Cambridge, funded in part by up to $565 million from senior governments. A final decision looms in June when council considers 10 revised options, including rapid buses.



Read the full article here.