Rebuilding homes in Fort McMurray Alta going faster than expected CMHC says

Rebuilding efforts in Fort McMurray, Alta., are running ahead of expectations, with reconstruction underway on one-third of the homes destroyed in last year’s wildfire, according to Canada Mortgage and Housing Corp.In a report Thursday, the federal agency said the rebuilding of 844 housing units has started and that number is expected to rise to about 1,000 this year. It said 122 of the projects were started last year and 722 in the first half of this year.CHMC market analyst Tim Gensey said the agency underestimated how many construction workers would come to Fort McMurray when it suggested last December only 600 units per year could be rebuilt.He said the strong numbers also reflect the devotion of residents.“One of the fears I’ve heard around the community is that people might just take the insurance money and leave Fort McMurray,” he said.“However … the people who live there permanently love their community and they are staying.”Gensey said about 550 of the units being rebuilt are single-family detached houses and most of the rest are townhouses.The fire that swept through the community of about 70,000 last year caused an estimated $3.8 billion in insured property damage and destroyed nearly 2,600 homes, including almost 1,900 single-family houses.At the current pace, all home rebuilding activity should be complete in three to four years, CMHC said.The agency pointed out a total of 59 new housing units — not rebuilds — have also started since the wildfire was extinguished.On its website, the Regional Municipality of Wood Buffalo, which governs Fort McMurray, reports that 86 rebuilt dwellings had been completed and received final inspections as of June 30.CMHC says about 99 per cent of the destroyed housing units in Fort McMurray are expected to be rebuilt, adding the exceptions are between 21 and 35 lots in the Waterways area being set aside as part of the municipality’s flood mitigation plan.Resale housing prices averaged $435,500 in the second quarter of 2017, up from $407,000 in the first quarter, a difference CMHC attributed to more condos and mobile unit sales in the earlier period.It said home prices have been in decline since 2013 and they aren’t expected to rebound until oil prices strengthen, improving prospects for the surrounding oilsands industry.CMHC reported Fort McMurray’s apartment vacancy rate fell from almost 30 per cent in 2015 to about 18 per cent in 2016 as residents displaced by the fire took up temporary accommodations.The rate is expected to drop to 10 per cent this year as workers from outside arrive to help with rebuilding.Follow @HealingSlowly on Twitter. read more

Markets set to rise on string of economic data amid concerns over

TORONTO – Stock markets could be in for a positive week after a string of reports, capped off by strong recent jobs data, showed that the U.S. economic recovery is firmly on track.A government report Friday reported that 203,000 jobs were created during November, adding to strong manufacturing and housing reports, better than expected third-quarter economic growth and improving consumer confidence.On Thursday, traders will look at the U.S. retail sales report for November for further reinforcement on whether the Federal Reserve thinks the economy is strong enough to start cutting back on a key area of stimulus.“If you believe these jobs numbers, you would think this would reflect better consumer spending in the month of November when these jobs gains took place,” said Andrew Pyle, associate director of wealth management at ScotiaMcLeod in Peterborough, Ont.“If these numbers are correct, then we should see a very healthy November retail sales number.”Economists are looking for sales to have risen by 0.6 per cent during the month.“(But) if that number (is) to come in north of 0.6 per cent, if we saw retail sales gain one per cent, that would solidify the improved economic tone that we saw this week,” said Pyle.While investors are happy to see this trail of positive economic data, the reports have raised concerns that the Fed could move soon to start tapering its monthly US$85 billion of bond purchases. In fact, speculation has risen that the Fed could move as soon as their next meeting on Dec. 18.“Oh, it definitely keeps alive the concerns,” said Pyle.“For sure, concerns have definitely risen in the wake of this (jobs) report and GDP report we saw earlier in the week. But I think I would still say the majority of economists on this street do not expect them to go.”Talk of Fed tapering has cast a shadow on markets during the last half of the year. That’s because the massive amounts of asset purchases have kept long term rates low and supported a strong rally on equity markets.Despite the relief over continuing signs of economic improvement, analysts are leery of forecasting an end-of-the-year rally, given the sharp runup that North American markets registered during October and most of November.“I think what we have seen into this month has been the Santa Claus rally advanced,” added Pyle.“Santa has come early and has gone up the chimney before we get to year end.”The TSX and the Dow both finished last week in the red, with the Toronto market off 0.86 per cent and the Dow down 0.41 per cent. But gains from earlier in the autumn are still largely intact with the TSX up seven per cent year to date and the Dow ahead 22 per cent.It going to be a very light week for economic data after last week’s flood.The main event for Canada this week is housing starts data for November. Economists expect a slight dip, falling to an annualized rate of 195,000 after registering a 198,000 advance in October.“New home construction is increasingly exerting a drag on economic growth,” observed CIBC World Markets economist Emanuella Enenajor in a commentary.“That weakness in home building likely reflects concerns around affordability as well as the budding risks of higher long-term rates.” AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Markets set to rise on string of economic data amid concerns over Fed stimulus by Malcolm Morrison, The Canadian Press Posted Dec 8, 2013 4:00 am MDT read more