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Ron Rapp, CEO | Twitter: @HAVANofficial
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INDUSTRY NEWS
2019 CHBA NATIONAL CONFERENCE, NIAGARA FALLS
The CHBA National conference was hosted in Niagara Falls, Ontario from Monday, May 6 through to the National Awards for Housing Excellence on Friday, May 10. A networking and information exchange with HBA's and industry stakeholders from across Canada, this information sharing forum provided valuable insights into the concerns, activities, and market conditions in all HBA's. The consensus is that our industry is under significant pressure.
The circumstances from one region the next can best be described as uneven, but Saskatchewan and Newfoundland in particular were characterized as "dismal". Saskatchewan, in addition to dealing with the general conditions affecting the real estate industry, is coping with PST now being applied to new home construction, and Newfoundland is dealing with the collapse of the oil and gas economy, compounded with a provincial government trying to tax its way out of an economy in serious trouble.
The one thread that is consistent across all regions is the adverse impact of the Federally mandated "stress test" on mortgage approvals. CHBA, all of the Provincial HBA's, and all of the local HBA's, including HAVAN, have been strongly lobbying for a mitigation of the "stress test" criteria.
Thursday May 9th, the keynote speaker addressing the conference attendees was the Right Honourable Prime Minister Justin Trudeau, followed by the Honourable Leader of the Opposition Andrew Scheer as the key note speaker on Friday, May 10. Appearance of such high-level politicians at any HBA event is unprecedented and speaks to how significant housing issues have become and that housing will be a fundamental plank in the platforms of all Federal parties in the forthcoming Federal elections in October.
While the Liberal government has introduced some initiatives to address the "housing crisis" in the recent Federal budget, it was clear from the PM's remarks and Q&A that the HBA's primary requests for a return to a 30 year mortgage amortization, and a more relaxed interest "stress test" being applied were not under current consideration.
Mr. Scheer's remarks while emphasizing the high-profile housing issues have assumed on the national stage, he also did not suggest that the HBA's proposals would get any traction with his party. He emphasized there is no one policy with which to address housing affordability, noting Canada is not one market, but many markets. He says his party is committed to eliminate the stress test on all mortgage renewal, but recommends it still be applied to new purchases. He did not address 30-year amortizations.
MONEY LAUNDERING
A report from professors Maureen Maloney, Tsur Somerville and Brigette Unger, titled
Combatting Money Laundering in BC Real Estate
, issued last week, indicate there was $7.4 billion laundered in B.C. in 2018 alone, of which two-thirds ($5.3 billion) filtered through the housing sector, driving housing prices by an estimated 5%.
It is a primary concern, that if such activity is taking place, the regulatory authorities act as required to quell such operations, noting HAVAN would be prepared to consult with government to determine how we may assist in this effort. It should be noted that Professor Maloney concluded that money laundering is not unilaterally responsible for the affordability crisis but intervening to "reduce money laundering can certainly help." We fully agree and support the need to ensure that this illegal activity be eliminated from the process of real estate transactions. We wish to be transparent and assure the public that they can confidently do business with our members and the industry as a whole.
The report recommends through beneficial ownership disclosure, the elimination of regulatory gaps, upgrades to federal anti-money laundering legislation and practices, and better data sharing, coordination and cooperation among agencies, a more effective federal/provincial anti-money laundering regime can be built.
The Industry, this Association, and its members support the government's, and judiciary's efforts to curtail money laundering in this or any other sector, and we encourage people to report any overt, and or obvious irregularities to the appropriate authorities including but not limited to FINTRAC.
SOME GOOD NEWS
While many information sources have adopted a doom and gloom posture of late, I would like to point out two sources that suggest the 'sky is not falling.'
Fifth Avenue Real Estate Marketing's The Fifth Dimension - Spring Edition noted in their summary
'While media outlets tend to focus on the most extreme statistics with headlines reading "Greater Vancouver home sales hit lowest point since 1986" it should also be noted that overall March resales in Greater Vancouver were up 15 percent from February 2019 and overall March resales in the Fraser Valley were up 24 percent compared to February 2019. This suggests that while sales totals are currently at low levels, there are some signs of positive activity in the marketplace if you look for them.'
Bloomberg News reported on May 9
"Canadian housing starts unexpectedly surged in April, in another sign of recovery for the nation's battered real estate market. Builders started work on an annualized 235,460 units last month, the highest level in 10 months and up 23 per cent from 191,981 units in March, the Canada Mortgage and Housing Corp. reported Wednesday. The gain was driven by new multi-unit construction in Toronto and Vancouver. The report is in line with other recent data that suggests the nation's housing sector is stabilizing from a recent slump, easing concerns that some of the country's more expensive markets like Toronto and Vancouver were poised for a major correction."
ONTARIO ACTS
On Thursday May 2 the Ontario Government released a report entitled " More Homes, More Choices -
Ontario's Housing Supply Action Plan."
This is a comprehensive plan that is focused on:
- reducing processing timelines and "red tape,"
- introduction of a mechanism to ensure decisions are made on a basis of "good planning" to curb Nimbyism,
- a review and revision of DCC's and other government imposed charges to ensure predictability of costs,
- creation of opportunity to introduce new and or innovative housing and ownership options,
- a review and offering of provincially held lands to be utilized for affordable housing options.
In speaking this week with David Wilkes, CEO of BILD - GTA, he commented that he was very pleased, and they could hardly have expected any more with the Ontario Government having adopted almost all of industry stakeholders' suggestions. It remains to be seen how and when these recommendations turn into reality - as Mark Sakai, HAVAN's Director of Government Relations commented in last Saturday's GRU "the devil is in the Details."
GREEN SHEETS ON THE GO
HAVAN member Green Sheet Construction Data tracks the Metro Vancouver construction market. Their online searchable database provides clients with a powerful tool to see past, current and future construction projects across the Lower Mainland. Visit
Green Sheet Hot Tips
to view this month's featured projects.
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HAVAN News
MEMBERS EXPO AND OVATION AWARDS
I have been attending the CHBA National Conference since last Saturday and did not have a chance to share any information or thoughts in the last MMB. I would like to take a moment now though to give a big shout out to your HAVAN staff for having staged the two premier events in the Association calendar, the Members Expo, and the Ovation Awards, both in the same week.
Both events were very well subscribed and received by members, and very well executed. The Builders Expo, under the direction of Senior Director of Membership and Sales Renee Auer, attracted over 700 attendees and was fully subscribed by vendors with displays spilling into the foyer.
The Ovation Awards, under the leadership of Vice President of Marketing and Education Wendy McNeil, were also very well attended with over 450 attendees and showcased the best efforts of members in 49 award categories. In both cases, all of HAVAN's staff stepped up to help make these events a seamless and very enjoyable experience for members, and demonstrated the great value Membership in the Association can offer. Congratulations to Renee, Wendy, and the entire HAVAN team.
I would also offer our appreciation to member volunteers, and event sponsors for their invaluable contributions to the success of these two events. Our appreciation is also extended to the Honourable Selina Robinson, BC Minister of Municipal Affairs and Housing, and Wendy Acheson, Registrar and Vice president BC Housing, for taking the time to participate in our Ovation Awards, and congratulations to all of the Ovations finalists and Winners whose efforts exemplify some of the best work in the renovation and new construction industry.
View pictures from the Gala here. To see Shaw Communication's broadcast of the. Ovation Awards Gala on YouTube (originally aired Sunday, May 12 at 12 a.m. and 8 a.m. on the Shaw Multicultural Channel - channel 4), click here.
HAVAN MEMBERS BRING HOME HARDWARE FROM NATIONAL
The CHBA National Awards for Housing Excellence were announced last Friday, at the National Conference in Niagara Falls. Congratulations goes to Marble Construction Ltd. for Best Detached Home - Production | 1,800 to 2,200 sq ft and Best Detached Home - Production | Over 3,000 sq ft; Best Builders Ltd. with with AH-Design, Chevalier Designs for Best Detached Home - Custom | Over 5,000 sq ft; Goldcon Construction with with McCabe Design & Interiors for Best Kitchen - Over $100,000; Rodrozen Designs for Best Whole House - over $1 million; View the complete list of winners
here.
FALL CLASSIC GOLF TOURNAMENT CLOSE TO SOLD OUT!
Limited tickets remain for HAVAN's Fall Classic Golf Tournament, presented by Preston Mobility/Bell, scheduled at the prestigious Swan-e-set Bay Resort and Country Club on Wednesday, September 4th.
Book your tickets today! Call 778-373-9783, or email dawn@havan.ca for sponsor details (a few remain.)
MEMBER CONNECTIONS
Check out
upcoming member events
including the U40's Talk 'About Tequila, full-day hands-on Building Better Buildings Seminar with Hamid Heidarali, Breakfast Networking, Suppliers' Round Table and more! Renee's weekly update is your link to member connections and opportunities. Your employees can help to leverage your membership. Share Sunday's Upcoming Opportunities Email with your staff and get them working for you! - They receive your membership rate too.
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HAVAN Education
IN-CLASSROOM COURSES: Member Rates apply to your staff too!
(Building Better Buildings) - A hands-on and interactive
full-day workshop offering a holistic perspective of the overall performance of the building envelope in terms of air tightness. Supported by 30 mobile building envelope assembly mock-ups, the workshop will showcase various methods of improving air tightness of wood, concrete, and steel-framed buildings.
The workshop will also demonstrate how the presented methods will have an impact on moisture management, energy efficiency, and thermal comfort. In addition, all presented air barrier methods will be explored and reviewed in relation to long-term durability, adaptability to future repair and renovation.
Showtime: Thursday,
May 23, 8:00am - 5:00pm
Location: Delta Hotels Burnaby Conference Centre, 4331 Dominion Street, Burnaby
CPDs: Approved for 8 CPDs in Group A
Instructor: Hamid Heidarali, Hamid Design Build Ltd.
Presenting Sponsor: FortisBC;
Technical Sponsors: 475 High Performance Building Supply, Convoy Supply, Henry Company Canada, Innotech Windows + Doors, Quad-Lock Building Systems (Airfoam), and SIGA Cover.
Supporting Sponsor: BCIT
Course:
The Integrated Design Process (Builders' Breakfast Series) The Integrated Design Process or IDP has been shown to produce more significant results than past conventional construction processes.
Showtime: Thursday, May 30th, 7:30am - 9:30am
Location: Trev Deeley, 1875 Boundary Road, Vancouver
View the complete HAVAN course lineup and online course offerings here.
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Member News
Take advantage of our audience and leverage your membership via HAVAN's channels. Send your press releases to dawn@havan.ca and we'll help share, tweet and repurpose your news. @HAVANofficial
Project Mint: PASSIVE HOUSE (framing completed) SITE TOUR:
465 E 18th Ave., Tuesday, June 4th (afternoon). Includes site tour, presentation and supplier reception. Building on a peat bog, this unique project offers a great opportunity to learn direct from the builder, architect and supplier team about project challenges and solutions. Save the date. Registration and details coming this week.
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Committee News
UPCOMING COMMITTEE MEETINGS
For a complete list of committees, and contacts, click
here.
Technical Committee
: Tuesday, May 14, 4:30pm - 6pm, Draft On Site,
Suppliers Council: Wednesday, May 15, All HAVAN supplier members are welcome! RSVP via email to Renée Auer, Senior Director of Membership & Sales renee@havan.ca
Development Committee:
Friday, May 17, 8:00am - 9:30, HAVAN Boardroom + video call-in option. Contact Mark@havan.ca
Reno Council: Tuesday, May 28th, 5:30pm - 8:30pm Open to Renovator business owners ONLY. Pre-register with Sonali@havan.ca
Membership Committee: Thursday, May 30, 4pm - 6pm, ABC Restaurant, Coquitlam. Contact Renee@havan.ca
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