Ron Rapp, CEO | Twitter: @HAVANofficial
...ONE NATION, UNDER STRESS...
he BC Real Estate Association (BCREA) released their July Economics Market Intelligence report which clearly identifies the B20 test as being one of the primary causes of the decline in sales and slowdown in the market. Conclusions are described as follows:
* The decline in home sales in 2018 was largely due to market factors like interest rates and affordability
* Without the stress test, home sales in BC would have been about 7,500 sales-or 10% higher-in 2018
* Approximately $500 million in BC economic activity was lost due the B20 stress test
The report found that basic market forces such as price points, higher interest rates, and a slowdown in the economy generally were already serving to slow down the overheated market particularly in BC. Nonetheless, the introduction of the B20 test saw a sharp decline in sales concurrently across the country which leaves little doubt that this was the primary reason for the sharp drop. The 7,500 "lost sales" noted are the average estimated, with the model ranging between 5,300 and 11,500. It is also noted that other Canadian markets have not been affected equally, but Vancouver and Toronto, where there were concurrent provincial and or municipal tax burdens applied, suffered the most significant reversals.
This review bears out the contention shared by most industry stakeholders that the current market conditions are policy induced and can therefore be influenced by changes to and or reversals of those policies. CHBA National, along with CHBA-BC, and HAVAN have been lobbying for months not to eliminate the B20, which is seen as a positive factor by international money agencies, but to adjust it to allow for a higher degree of accessibility and qualification. Specifically, a re-introduction of the 30 year amortization and mitigating the 2 point additional "stress" applied to qualification down to 0.5 - 0.7 for longer term 5 -7 year term mortgages. It is important to note that the current B20 test is not only applied to high ratio, CMHC insured mortgages, but all applicants even those with as much as 25% or more down payment.
The estimate of 7500 or more sales that could be potentially realized if the stress test were dropped altogether would be closer to 4000 with a modified stress test as projected by CHBA. Last week the MMB discussed the signs that Toronto was rebounding while Vancouver continues to languish, and there are markets in BC that are growing such as the North, and Kamloops. Please note; neither Toronto, nor the more buoyant regions of BC are subject to any other demand side controls other than the B20 test. Does this suggest that the local speculation, vacancy taxes etc. are also playing a role in this policy induced downturn?
BC HOUSING NEW HOMES REGISTRY REPORT - JUNE 2019
The June BC Housing New Homes Registry report is available here. This report is very helpful particularly for the new home construction industry as it tracks new home registrations that are in process of, or have secured building permits. As such, it is a good barometer of activity across the province with statistics focused in specific noted areas. The registrations are also broken out for SFD, multi, and purpose-built rentals. The most interesting factor noted in the report is the 221% increase in purpose built rental.
STAR TRADES...THE NEXT GENERATION
Maintaining and expanding a skilled work force with the knowledge and experience required to produce the ever more complex and sophisticated homes of the future requires investment in our young people to ensure we have the resources to deliver the required housing supply.
One of the issues that we need our society to overcome is the notion that a career in the trades is a "second choice." We need to promote at every level and turn that a career in a trade is a viable, available, honourable, and good paying career choice.
The best opportunity to effectively learn skills inherent in any trade lie in the actual "doing" under the guidance of a company of certified tradespeople. Vocational and college technical programs have their place but have limited capacity, are a cost to the student, and place grads into the work force later than a typical apprentice with less direct practical experience. Employers are encouraged to look into the Red Seal apprenticeship programs offered by the Federal and Provincial governments to see how you can participate to help secure our industry's future work force.
Our industry is going to continue to be challenged by an expanding population base and the need to build at a pace that can come closer to meeting the demand pressures. Combined efforts by industry and government will be required to encourage our young people to embrace the trades as a desired career choice.
RENOVATION FUNDAMENTALS: THE COURSE
A shout out to CHBA-BC who have released their new two hour Renovation Fundamentals course! This is the first course (of more to come) to focus directly on the key elements of operating a renovation business. The course is eligible for four BC Housing CPD points and will be a part of the first step to introduce basic performance standards in the renovation side of our industry.
including Supplier's Council Meeting this Wednesday.
Renee's weekly update is your link to member connections and opportunities. Your employees can help to leverage your membership. Share Renee's Sunday Connections email with your staff and get them working for you! - They receive your membership rate too.
FALL HOME SHOW - LOOKING FOR HOUSING EXPERTS
Builders and Renovators - HAVAN's award-winning Ask the Experts Stage, sponsored in part by Trail Appliances, is currently looking for industry experts to participate in panel discussions at Vancouver's Fall Home Show October 24-27. Focused on connecting members with homeowners actively looking for home building and renovation resources, this is a great opportunity to position yourself as an expert, endorsed by HAVAN. Only 15 spots available. Contact Sonali@HAVAN.ca for details.
TRIVIA NIGHT WITH THE U40s
HAVAN HEROES: MEET THE 2019 DROP ZONE TEAM!
Think you know it all? Put your knowledge to the test and compete against fellow HAVAN Members for awesome prizes!
All ages are invited Thursday, August 22 at The Pint Public House from 5:30 to 8:30 PM. More details and to register.
Recognize any faces in the picture? Thirteen HAVAN members are banding together for a knee-shaking, heart-pounding, adrenaline-pumping fundraising adventure on
Thursday, September 12.
The 'HAVAN Heroes' will be rappelling down the 25 story Guinness building at 1055 West Hastings St. in Vancouver to
help raise awareness and funds in support of Easter Seals House summer camps and skills training opportunities for children with disabilities.
Each Hero is required to raise a minimum of $850 to step off and rappel for the kids.
$20 is a day of nutritious meals for a camper
$100 is a day at camp for a child with diverse abilities
$500 supports employment and skills training programs
Thank you to the following HAVAN Heroes for stepping up, off and going to distance to help kids attend summer camp.
Get recognized for doing business with the most HAVAN members. The Handshake Awards will be announced at the Oct 2 AEM Dinner.
now open. Prizes to be won! There are over 1115 members. There is power and success in connecting!
GOLF TOURNAMENT: OPPORTUNITY TO JOIN IN CLOSING JULY 30
HAVAN's Fall Classic Golf Tournament sold out in under two weeks! We do however have a few sponsorships remaining, which give you access to purchase a select few golf tickets on reserve. Contact Dawn@havan.ca
All eyes will be on your brand as 375 guests bid on auction items.
(marketed 10 days up to and including all day at event!)
Beverage Hole Sponsor
Only two per course, the watering holes are hugely popular!
(beverages are ordered through the B&F
End of Day Sponsor
(We bring in the massage technicians, and you take all the credit!)
SUMMER SOCIAL - WEDNESDAY, AUGUST 7th
An evening of food, networking, and FUNdraising for Nightshift Ministries, this is set to be the party of the summer. Featuring the Taste of HAVAN food truck, courtesy of Country Lumber, dessert truck and keg courtesy of Sherwood Outdoor Kitchens, a "Chip It In to Win" contest courtesy of Preston Mobility, a Live Auction Dunk Tank courtesy of Federated Insurance, and summer tunes provided by HiFi Centre, we plan to make a real 'splash' in the community!
IN-CLASSROOM COURSES: Member Rates apply to your staff too!
Showtime: Tuesdays and Thursdays, August 6 - 22, 7 - 10 pm
Location: Online! (Best part - if you miss a webinar, you can take it later.)
Managing your social media and PR in-house? Check out this course for you or your staff. Jelly sets the industry's standards!
BC Employer Grant now open and available to cover approx. $1,000 in tuition costs!
HAVAN MEMBERS receive additional $500 off. Register using code 'HAVAN500'
Showtime: Wed, Aug 14, 8:30a - 11:30a
Builders' Breakfast Series
: Focused on Building Science, this session includes hot breakfast and of course networking too. This month's topic TBC
: Thurs, Aug 29, 7:30a - 9:30a
: Trev Deeley, 1875 Boundary Road, Vancouver
View the complete HAVAN course lineup and online course offerings here
Member News & HAVAN Heroes
HASLER HOMES HELPS WITH LYNN VALLEY EDIBLE GARDEN
A way to connect children to there food and the community, Lynn Valley Elementary Edible garden program teaches the children the cycle of food production from seed to soil. They grow the food, harvest the food, prepare it, and enjoy it. Supporting the Hasler Boy's elementary school was a great opportunity for Hasler Homes to connect and give back to the community where the were raised and work today. Thanks guys!
Take advantage of our audience and leverage your membership via HAVAN's channels. We're always on the lookout to highlight members connecting with and supporting the communities where you build. In our eyes, you are real HAVAN Heroes. Send your press releases to firstname.lastname@example.org and we'll help share, tweet and re-purpose your news. @HAVANofficial
UPCOMING COMMITTEE MEETINGS
For a complete list of committees, and contacts, click
For the schedule of upcoming committee meetings and other opportunities to connect,