Residential, Industrial and Commercial Building Market – December 8, 2016By: Paul Young, CPA, CGADate: December 8, 2016

Introduction

This presentation will look at the building trends for residential, commercial and industrial for Canada

Presenter / Paul Young, CPA, CGA

• 25 years in Corporate Finance• CPA/CGA since 1996• Educator for CGA/CPA

Agenda

• Housing Starts – November 2016• Housing prices – Average Housing Prices • Building Permits – October 2016

Housing Starts

• Toronto was responsible for most of the national decline in November 2016• Starts in Vancouver bounced back strongly in the month of November 2016, and are on

pace for the largest annual tally since at least 1990. Alberta is still holding steady around the 26k mark. While that is down from a rate of around 40k before oil prices collapsed, underlying demographics should continue to support this level of homebuilding.

• Quebec and Atlantic Canada both saw activity dip slightly in November 2016

Source - BMO Source: BMO, Scotiabank and CMHC

Housing PricesSource – Scotiabank

• BC Comment” The number of transactions involving foreign buyers plunged, from 2,034 deals in the seven-week period before the tax, to 60 in the four weeks starting Aug. 2.  "My hope is that many of those units that would have sold to foreign buyers, will now be sold to British Columbians," said Clark. According to the data, in the seven weeks before the tax was introduced (June 10 to Aug. 1) the total value of all residential sales involving foreign nationals was $2.3 billion — an average of $329 million per week. ”http://www.cbc.ca/news/canada/british-columbia/foreign-buyers-tax-data-1.3772158

• New Mortgage Rules “C anadians applying for a mortgage that requires CMHC insurance will have to qualify under higher interest rates under a new “stress test” announced October 3 by federal finance minister Bill Morneau. The tougher mortgage rules were announced as part of a wider series of "preventative measures" aimed at “ensuring the long-term stability of the market” and reducing risk, according to Morneau. ” - Source - http://www.rew.ca/news/feds-strict-new-mortgage-rules-target-first-time-buyers-and-millennials-1.2357010

Building PermitsSource – Stats Canada

Analysis/Comments:• Economy is growing

at 1.2% for 2016. • Strong retail sales

are leading to more commercial development

• Automotive and Food processing are leading building permits for industrial