Builder Strategies

OTTAWA, February 4, 2008 — Housing starts reached 228,343 units in 2007, an increase of 0.4 per cent from 227,395 in 2006, according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter Housing Market Outlook, Canada Edition report. In 2008, residential construction will decline to about 211,700 units, given higher mortgage carrying costs. Nevertheless, Canada’s housing market remains strong and 2008 will mark the seventh consecutive year in which housing starts exceed 200,000 units.

“Despite some global financial instability with regards to the U.S. housing market, Canada continues to experience robust employment levels, ongoing income gains and low mortgage rates,” said Bob Dugan, Chief Economist for CMHC. “This has strongly supported Canada’s housing markets. However, housing starts are expected to decrease in 2008 mainly due to recent increases in house prices, which will push mortgage carrying costs higher for home buyers.”

Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are poised to experience a very strong year with about 520,000 units in 2007, a 7.6 per cent increase over 2006. In 2008 the level of MLS® sales is expected to fall by 3.9 per cent to 499,650 units, while 2009 will see an additional decrease to 488,300. Growth in the average MLS® price has remained high at 10.6 per cent in 2007, mainly because of continued strong price pressures in Canada’s western provinces. However, as most resale markets move toward more balanced conditions, growth in average MLS® price is forecast to slow to 5.2 per cent in 2008 and 3.8 per cent in 2009.

At the provincial level, British Columbia’s housing starts, which have been above historical averages, are expected to decline in 2008. It is anticipated that a continuing tight labour market, robust income growth and high levels of consumer confidence will help to offset the dampening effect of rising mortgage carrying costs on the demand for new and existing homes in British Columbia. Housing starts should decline from 39,195 units in 2007 to 33,250 in 2008 and 31,700 in 2009. The average MLS® price in British Columbia will grow by 12.1 per cent in 2007, 6.0 per cent in 2008 and 5.0 per cent in 2009. This moderation is due to increased listings and fewer resales bringing more balanced supply and demand conditions to existing homes.

Alberta continues to experience very low unemployment and continuing overall prosperity. Despite these positives, the province is expected to face a drop in net migrants between now and the end of 2008 due to the growing difference in provincial house prices and improved labour market conditions in other provinces. These factors will combine to reduce housing starts from 48,336 units in 2007 to 39,500 in 2008 and 37,750 in 2009. Following an unprecedented 30.7 per cent gain in 2006, and a forecasted strong 24.4 per cent rise in 2007, the average MLS® price is expected to climb by 3.9 per cent in 2008 and 5.4 per cent in 2009.

During 2007, Saskatchewan experienced steady economic growth, a healthy employment situation and gains in net migration. This contributed to strong housing demand. Total housing starts reached 6,007 units in 2007, the highest level in 24 years. However, escalating costs will push housing starts down to 5,600 units in 2008 and 5,300 in 2009. The average MLS® price in Saskatchewan will rise by 31.7 per cent during 2007, 26.4 per cent in 2008 and 8.2 per cent in 2009.

Manitoba is one of five provinces whose economic growth is expected to exceed the national average for 2007. This success has contributed to a five-year high in job creation, which has increased net migration to levels not seen since 1982. These factors will contribute to healthy levels of new home construction through 2008. Total housing starts reached 5,738 units in 2007, the best performance in 20 years. Starts will edge up slightly to 5,800 units in 2008 and 5,900 in 2009. The average MLS® price in Manitoba will rise by 12.5 per cent in 2007, 9.8 per cent in 2008 and 5.7 per cent in 2009.

The Ontario economy is expected to improve slightly during 2008 and this will help sustain housing demand across the province. New home construction activity will be moderate between now and the end of 2008. Housing starts are expected to move up from 68,123 units in 2007 to 69,150 units in 2008, while a more modest economy in 2009 will push starts down somewhat to 67,150 units. The average MLS® price in Ontario will rise by 7.6 per cent in 2007, while 2008 and 2009 should see increases of 6.2 per cent and 2.9 per cent, respectively.

Solid job creation and steady economic growth in Quebec during 2007 pushed housing starts up by 1.4 per cent to 48,553 units. A moderation of the economy will cause a slight shift downwards in 2008 to 46,500 units and 45,375 in 2009. A reasonably healthy resale market will also fuel average MLS® price growth in Quebec; 6.6 per cent in 2007, 3.8 per cent in 2008 and 3.0 per cent in 2009.

In New Brunswick, rising mortgage carrying costs, a slower economy and more choice in the resale market will result in lower levels of new home construction. Housing starts are forecast to decline from 4,242 units in 2007 to 3,925 in 2008, a decrease of 7.5 per cent. Moving into 2009, starts are expected to fall to 3,650 units. The average MLS® price in New Brunswick should rise by 8.1 per cent during 2007, 3.6 per cent during 2008 and 2.8 per cent during 2009.

Nova Scotia will experience slower employment and population growth during 2008, causing new home construction activity to be more restrained. Housing starts are forecast to stabilize from 4,750 units in 2007 to 4,550 in 2008 and 4,500 in 2009. The average MLS® price in Nova Scotia is expected to rise by 7.5 per cent for 2007, while 2008 and 2009 will see growth of 4.4 per cent and 2.6 per cent, respectively.

Prince Edward Island’s economy is expected to undergo modest economic growth through 2008. As a result, housing starts will slowly decline from 750 units in 2007 to 700 in 2008 and 675 in 2009. The average MLS® price in Prince Edward Island will rise by 6.0 per cent in 2007, 3.4 per cent in 2008 and 3.3 per cent in 2009.

In Newfoundland, a strong export-driven economy has pushed housing demand up. However, it is expected that higher homeownership and construction costs and lower employment growth will dampen housing demand in 2008. Housing starts for 2007 were up 18.6 per cent to 2,649 units. For 2008, minimal change is expected at 2,650 units. Meanwhile, 2009 will see an additional increase of 0.9 per cent to 2,675 units. The average MLS® price in Newfoundland will rise by 7.0 per cent in 2007, 7.2 per cent in 2008 and 6.3 per cent in 2009.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country

Published: Friday, May 02, 2008

MLS sales in Calgary continued to drop in April compared with a year ago while new listings climbed and average sale prices stayed steady for single-family homes, according to data released Thursday by the Calgary Real Estate Board.

The real estate board says listings are now taking twice as long to sell over last year.

Sales of single-family homes dropped by nearly 35 per cent while condo sales fell by almost 31 per cent. New listings increased by almost nine per cent for single-family homes and by 29 per cent for condos.

Given the hectic pace of the resale market in the past few years, many buyers are breathing a sigh of relief, said real estate board president Ed Jensen. “Sellers need to pay attention to the current market.”

“The market continues strong in a normalized sense because if I take out these two years (2006 and 2007), that’s where I still see our marketplace. It continues on very steady.”

In the single-family home market for Calgary metro, the average sale price was $474,564, up just 0.1 per cent from the $474,250 in April 2007. The median sale price was $420,000, a decrease of 2.8 per cent from $432,000 a year ago.

In the condominium market for Calgary metro, the average sale price was $312,586, a 5.1 per cent decline from the $329,429 average in April 2007.

The supply of homes for sale is high and demand has been “reduced dramatically,” said Lai Sing Louie, senior market analyst for Canada Mortgage and Housing Corp.

“One of the biggest things that has really impacted that demand is the much lower level of net migration that’s coming in,” he said.

In the second half of 2006, Alberta experienced a net gain of 36,348 people, while in the second half of 2007 the province experienced a net loss of 4,196 people.

“That swing is over 40,000 people,” said Louie, adding Calgaryusually gets about 40 per cent of the overall interprovincial migration number.

There is no data for 2008 “but that trend is likely to have continued and that’s probably likely leading to this sharp reduction in demand in MLS sales,” said Louie.

Calgary Metro MLS Sales and New Listings

(April) 2008 ‘07 Change

Single-family homes

Sales - 1,363 - 2,086, -34.7%

Listings - 3,377 - 3,100, 8.9%

Condominiums

Sales - 581 - 839, -30.8%

Listings - 1,493 - 1,157, 29%

Source: Calgary Real Estate Board

The Canadian Press

March 25, 2008 at 6:45 PM EDT

  A close up photo of the adult mountain pine beetle

VANCOUVER — The mountain pine beetle epidemic in British Columbia is coming to a close but only because the pests have run out of trees.

The voracious beetle has destroyed 13.5 million hectares of lodge pole pine in the province — an area more than four times the size of Vancouver Island.

While the beetle continues its push east past the Rocky Mountains and into B.C.’s southern interior region, there is little left for it to survive on in the province’s central interior area where it’s been thriving for decades.
“The pine beetle populations have moved on. The epidemic is fundamentally over,” said Doug Routledge, vice-president of forestry with the Council of Forest Industries. “The pine stands in the core part of the province… have collapsed.” 

The latest figures from the B.C. government and the council estimate the beetle has consumed more than half of B.C.’s marketable pine forest.

About 710 million cubic metres of timber is in either the green, red or grey stages of attack by the beetle, which bores into the trees, lay eggs and attract mates.

The beetles infect the tree with a fungus and the hatched larvae then feed off the fungus before the tree dies and they move on to another.

Trees are “green” in the first year of infestation. Red refers to the rusty colour of the pine’s needles when the beetles and the fungus they carry kills the tree. Grey describes the last stage when the tree is dead and the needles have fallen off.

There are about 1.35 billion cubic meters of merchantable pine on the provincial harvesting land base.
Mr. Routledge said the beetle’s rate of spread is slowing because the rice-sized bugs have to go to higher elevations to reach new trees and two cold snaps in two years in the northeast have slowed their progress.
“Now that’s not to say they’re not still at epidemic levels. They are,” he said.

Mr. Routledge said the collapse of the industry will be hard on some forest-dependent communities, but new technology has extended the life of the beetle-killed wood and the province has many other species of trees to cut.

“While it does represent a significant impact to the province, of course we have other species out there, conifer species that we can harvest.”

Mr. Routledge said new technology and harvesting techniques are extending the life and use of beetle-killed trees by several years.

However a high Canadian dollar, rising fuel prices and low demand from the U.S. housing market offers little incentive for companies to cut wood of questionable value.

“We’re facing a lot of negative factors in terms of trying to address the mountain pine beetle,” said Rick Publicover, executive director of the Central Interior Logging Association.

Mr. Publicover’s group, based in Prince George, B.C., represents independent logging contractors, haulers, road builders, equipment suppliers and some workers.

He said many association members are pinning their hopes in continuing work on bioenergy, which would see wood pellets made out of the dead wood to burn for heat and electricity.

“The hope is the quicker we can get on to the bioenergy front and then (we can) figure out how to make that work,” Mr. Publicover said.

He said there could be two-decades worth of work just pulling dead wood out of the forest. Joe Foy, of the environmental group Wilderness Committee, said studies show a dead forest creates less wetland if it’s left standing and is healthier than a cut block three decades later.

Mr. Foy is against using federal or provincial government money to subsidize a bioenergy industry for the trees.

“Even though it’s called green power, it still puts a hell of a lot of CO2 in the air. What they’re saying is we shouldn’t count the CO2 because it would have burned in a forest fire anyway,” he said.

Mr. Foy said those communities that will be hurt by the loss of their industry should get help just as though they were hit by a tsunami or bad storm. But workers there shouldn’t be paid to cut dead trees, he said. 

“It seems kind of goofy to me,” he said of paying corporations to cut down dead trees when studies show the forest is better off being left alone. “If we went that way, what you would see is basically welfare corporations that were siphoning money that could be used for any number of things.”  

  If you are replacing an old heating system, you should always consider the most efficient unit available. Even if you pay more for it, you can realize energy cost savings — and you can reduce your greenhouse gas emissions. A high-efficiency natural gas furnace, also known as a condensing furnace, is the most efficient furnace available, because it provides your home with ideal heating comfort while using less energy than other models. High-efficiency furnaces are designed to extract additional heat from natural gas and, when they do, the flue gases condense, or turn to water — hence, the name condensing furnace.

  Energy efficiency rating
The energy efficiency of natural gas furnaces is measured by AFUE — annual fuel utilization efficiency. The higher the AFUE number, the more efficient the model. High-efficiency furnaces have AFUE ratings of 88 to 97%, whereas mid-efficiency furnaces range from 78 to 82%

You’ll notice that there are labels on new furnaces. One is the EnerGuide label. This label is on every furnace, it tells you in very simple terms what the furnace’s AFUE rating is. Keep in mind that just because a furnace has an EnerGuide label it does not necessarily mean that the furnace is energy efficient; it simply means it has been tested.      

What is the ENERGY STAR furnace?
If the furnace you are looking at has an ENERGY STAR® label on it, it means that it is an excellent energy wise choice. Only furnaces that are exceptional in the area of energy efficiency (AFUE rating of 90% or more) earn the ENERGY STAR label. When looking for a high efficient furnace, you might also want to consider an ENERGY STAR programmable thermostat.
For more information on the ENERGY STAR program click here.

Significant cost savings:
Thanks to its high-tech design, a high-efficiency natural gas furnace squeezes the most heat out of every heating dollar. For every dollar you spend on energy, it produces 88 to 97 cents worth of heat. It could save you up to 24% (97 AFUE - 78 AFUE) in energy and related energy costs. Its high-efficiency will also help to insulate you from increasing energy prices. All in all, the new furnace you choose will become a very big part of your energy reduction plan. Choose the most efficient furnace your budget allows. Once it’s installed, take care of it and it will take care of lowering your heating costs. Just ask your heating contractor to help you calculate the savings a high-efficiency furnace can bring you.

Energy-saving electronic ignition:
Did you know electronic ignition has replaced the continuous burning pilot light in natural gas furnaces? This technical advance saves energy by producing a safe and efficient means of igniting the burner when the thermostat calls for heat.

Easy maintenance for efficiency:
When your furnace operates at peak efficiency, it uses less energy and costs less to operate. Have a heating contractor perform an annual maintenance check on your furnace and venting and cooling systems to ensure they are operating at peak efficiency.

Simple things you can do between maintenance checks:
 1. Clean or replace the air filter on your forced-air furnace every one to two months. A dirty filter reduces airflow and makes your furnace run longer.
2. Allow for unobstructed airflow near hot air registers (see left), return air grills, radiators, and baseboard heaters.
3. Speaking of furniture, be sure it’s not over blocking heating vents or cold air returns.
4. Seal the seams of your furnace ducting with aluminum foil tape, not duct tape.
 

Thanks to ZgartZ for this hot off the press release; visit his Investors wesite @ http:notesforInvestors.com 

2 minutes ago  March 3, 2008   10:15 PM 

(RTTNews) - Tuesday’s disappointing U.S. construction spending data was a signal of more such news to come, says Global Insight U.S. economist Patrick Newport. Single-family construction dropped by more than 5% for the third straight month. The latest housing starts and housing permits numbers point to similar-sized drops over the next two to three months. Spending on multi-family units dropped for the 14th month in a row, and was down 18.6% from a year earlier. Global Insight expects residential investment to chop real GDP growth by 1.6% in the first quarter of 2008, and by 1.1 percent in the second quarter. The bite from housing will get progressively smaller afterward, however. Indeed, residential investment will make a small contribution to growth in 2009. Private nonresidential construction dropped for only the second time in 31 months. On top of this, revisions shaved December’s gain to 0.4% (previously 1.3%). The drop in private nonresidential construction may be a sigh of things to come. Its recent growth rates were unsustainable. Indeed, we had been expecting this sector to contract in 2008 because of the housing slowdown (fewer homes require fewer stores, restaurants, gas stations, etc). But now we are expecting an even larger contraction because of the credit crunch. In its January Survey of Bank Loan Officers, the Federal Reserve reported that a record 80% of banks raised standards on commercial property loans over the previous three months. According to the survey, one-third of the responding banks reported tightening their standards on commercial and industrial loans, while two-fifths said they widened spreads of interest rates over their cost of funds. Construction spending in January was down only 3.3% from a year earlier, as strong gains from public and private nonresidential construction have mostly offset the huge drag from housing. This is about to change. Global Insight expects all three categories to contract through most of 2008. January’s disappointing numbers are a preview of things to come.

For comments and feedback: contact editorial@rttnews.com

Copyright (c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Soaring real estate prices has hit home for middle-class voters in Alberta.

For Bonnie Porter and Denise Best, Alberta’s crunch in affordable housing started to affect them in January. That’s when the women, single mothers living in a Castle Downs apartment building, had their rents raised by $385 and $470 per month. “I’m making it right now, but I don’t know if I’ll make it another month,” says Porter, a 49-year-old day care worker, who has lived in her two-bedroom apartment for almost five years. “I’m devastated,” says Best, 47, who has muscular dystrophy and uses a wheelchair. She has lived in her apartment for four years. “When my savings run out, I don’t know what I’m going to do.” 

In the last week of the provincial election campaign, Porter and Best find themselves at the forefront of the affordable housing issue that some experts say could sway voters at the ballot box. Porter still doesn’t who will receive her support, but she definitely knows who won’t. “I will not be voting for Premier Ed Stelmach,” say’s Porter. “He could have put a cap on rent increases and he didn’t.” Back In 2004, the words “affordable housing” barely registered on the election radar in Alberta. 

Four years and a series of near-record house price increases later, affordable housing is tied with health care as Alberta’s top issue in a Leger Marketing poll done just before the election call. The poll results were not surprising to many. Affordable housing issues have been making headlines across the province for more than a year. The issue seemed to reach a climax last spring as Albertans waited for the provincial government’s response to its affordable housing task force. Debate swirled about rent control and limiting condominium conversions. 

In the end, Premier Ed Stelmach put forward a multimillion-dollar housing package, but rejected almost half the task force’s recommendations, including the contentious suggestion to implement temporary rent guidelines. Experts generally agree that affordable housing has become a hot election topic because it now affects a vast number of middle-class voters. Baby boomers watch their children struggle to purchase homes, while the younger generation experiences the dilemma first-hand. According to the Leger poll, 35 percent of 18- to 34-year-olds listed affordable housing as the most important issue in Alberta, compared to 23 per cent of all Albertans. 

Alex Caldararu, who helped found the Albertans Demand Affordable Housing group, has seen first-hand how the issue has affected people. Last August, the group hosted a rally in Edmonton that attracted about 300 people — most not “the usual suspects” from activist groups, he says. “The vast majority of people attending the rally were people I’d never seen at any events before,” says Caldararu, “It kind of gave us reason to think, maybe we’re onto something here, maybe this is something people feel really passionate about and you don’t need to be politically out there. “Caldararu thinks the affordable housing issue will be a huge election issue and notes that all of the major parties are putting forward affordable housing platforms. 

Marc Tremblay, a vice-president at Leger Marketing, says poll results that showed affordable housing as a top concern demonstrate that “Albertans are looking at the provincial government to provide some solutions and leadership on how to deal with this.” But he doubts the issue will be a deciding factor in how most people vote. “When talking about top issues like affordable housing, health care and the environment, all of these issues will come into one mix and Albertans will look at how these leaders and parties are rolling out platforms as a total package and say, ‘This doesn’t work for me, I won’t support them,’ ” say’s Tremblay. “It’s not like all of a sudden people will completely change their vote all because of one issue. I don’t believe that. It’s all of the factors coming into play.” 

But some experts, such as University of Alberta political scientist Jim Lightbody, believe Albertans don’t actually view affordable housing as a stand-alone issue, separated from broad social and economic trends. “People know enough to know affordable housing is a provincial government responsibility and why do we have a problem here?”. 

“What we have is uncontrolled economic expansion at the behest of American multinationals. There’s been no planning for the impacts that the influx of population will have on our communities. “That’s why the issue will be framed more widely be voters than by the political claque,” he says. “People do see the interconnection between uncontrolled growth and the kinds of problems all around us.”  The women in the Castle Downs apartment building know that affordable housing is an issue in the upcoming election. But Denise Best wonders what the government is going to do about it. “I’m so disappointed with the government,” she says. “They talk about building housing, but how long is that going to take?”  

  The residential housing sector has been leading all other parts of our economy in the areas of energy efficiency and reducing climate change emissions, says Richard Lind, president of the Canadian Home Builders’ Association. (CHBA)

Acknowledging the public’s increasing concern over the environment and climate change, the home-building industry is in the position to deliver some good news to the Canadian public.

Here are the facts:

The Canadian Council of Energy Ministers reports that in spite of a 25 per cent increase in the total number of houses between 1990 and 2004, energy use in Canadian homes grew by only 10 per cent thanks to increased energy efficiencies.

During the same time, industrial energy use went up by 30 per cent, transportation energy use by 31 per cent and energy use in commercial and institutional buildings by 35 per cent.

Environment Canada data shows that despite this increased energy use, the climate change emissions released by Canadian homes actually fell by almost 5 per cent between 1990 and 2005. Housing is the only sector that achieved a decrease in these emissions.

Over the same period, emissions from electricity generation have grown by 32 per cent, transportation related emissions are up by 25 per cent and buildings in the industrial, commercial and institutional sector have seen emissions grow by 42 per cent.

These statistics should not suggest that the home-building industry should rest on its laurels, but are evidence that the industry is ahead of its time and that voluntary, market-driven and industry-led approaches such as R-2000, Energy Star and Built Green Alberta/B.C. can deliver substantial results.

Lind does raise a concern with the way in which elements of the voluntary program approach are being dropped into building codes on a piecemeal basis by provincial governments.

As Lind points out, the process for developing the Model National Building Code is open to all interested parties. It is co-ordinated, transparent, accountable and consensus-based.

“This system brings a national perspective to the scientific research, cost-benefit analysis and engagement of all affected parties. The process fosters code uniformity across Canada,”.

While the CHBA is concerned with provincial governments undermining the uniform building code concept, BILD is concerned with the way individual municipalities can take that one step further by attempting to mandate one or another of the voluntary energy-efficiency labels.

Legally, municipalities can’t do this, otherwise home builders would face regulatory chaos with different rules wherever they go. But some municipalities have superseded the code through a leveraged approach to development approvals while others have developed guidelines that have an interesting way of becoming policies.

Municipalities should be free to mandate a particular label for their own buildings and/or development on municipally owned lands so long as they can sell the cost benefit to their taxpayers. Builders should be free to choose among the various labels and then try to sell the cost benefit to their buyers.

The mandatory building code approach combined with optional green labeling programs is working effectively as witnessed by the large and growing number of builders and units registered with the various programs, and now we’ve got the stats to prove it.

As Lind states, “our industry is an environmental leader, and these results reinforce our position.”
The home-building industry is proud to lead all the other sectors and if the last year is any indication, we’re widening the gap. Home builders look forward to continuing their efforts in a voluntary framework and in the spirit of housing affordability and choice.

  Could you be a Ruppie?

What’s a Ruppie? It’s an acronym for Retired Urban Professionals, kind of like Yuppies (Young Urban Professionals). Many Yuppies have become Ruppies, quotes a book called ‘Retire Downtown’ by American city planner, Kyle Ezell.

It’s a quick read and has plenty of information on the downtowns of various American cities that have morphed into fabulous places to retire. Many have become “urban playgrounds or resorts” and include waterfront parks as well as major cultural and sports complexes.

Downtown condos in these cities have become vertical, gated retirement villages. Think about it — such new luxury condos not only include 24/7 concierges in the lobby, they also have workout rooms, party rooms, places to wash your car in the parking garage, a workroom for handymen, and even a wine cellar for “cork dorks”.

In Calgary Alberta, the Eau Claire area along the Bow River’s edge is quickly becoming such an upscale retirement village. Eau Claire 500 has long been a haven for the retired, or the soon-to-be retired. The Princeton has been a huge success as a hip retirement village.

Phase one of the new Waterfront development, which recently sold out in a day, seems to be attracting the same market. Concord Pacific’s project West of Princeton is expected to continue with this trend.

It will also be interesting to see if the Rivers redevelopment, which includes East Village near city hall, will become a Ruppie or a Yuppie village.

A chapter in ‘Retire Downtown’ called ‘Living It Up Downtown’, talks about why the downtowns of the cities surveyed are attractive place to retire, not only in terms of culture, dining, festivals and other activities, but also in more abstract ways.

Did you know that retiring downtown will help keep you young? Yes, the thinking is that by living downtown, you will naturally interact more with young people, who will provide you with a more vibrant, active outlook on life. Retiring downtown increases your exposure to a wider diversity of cultures, expanding your horizons and keeping you worldly. It results in a lifestyle that is about not only living and playing, but about learning in ways that people in the suburbs find harder to do.

You will find yourself taking in a lecture at the museum, attending wine-tasting classes or going to more theatre and music events, when they are in your backyard. Some people find living downtown is exotic compared to a life spent in the suburbs.

All of a sudden, you are walking more, taking transit, visiting galleries and museums, dining out in ethnic restaurants and participating in multi-cultural festivals. You will exchange the drive-through culture of the suburbs with a more adventurous lifestyle, becoming a tourist in your own city.

A sense of community exists in the downtown that doesn’t exist in the suburbs. Contrary to conventional thinking, you actually interact more with people in the downtown. Your condo or apartment becomes more of a community than in the suburbs, where a car-based culture and fenced-off property prevent even next-door neighbours from interacting much with each other.

Downtowners are often more involved in the community because it offers so many different volunteer opportunities — everything from churches, social agencies and theatre groups to galleries, museums and tourist information centres.

There seems to be a growing worry these days about downtown crime. But in reality, downtown is quite safe and the crime statistics will support this. Sure, there are crime hot spots and there are certain situations you certainly want to avoid — but for the most part, living downtown is as safe as living in the suburbs.

 Builders can lose a lot of sleep worrying about gaining a competitive edge while constantly improving the quality and durability of the homes they build. But luckily, there are new techniques like Optimal Value Eningeering (OVE) – and specifically stack framing — that can help builders get a full night’s rest.

Optimal Value Engineering and stack framing save lumber and energy.

Click on the link below to watch the short but informative video:

http://www.hgtvpro.com/hpro/pac_ctnt/text/0,2595,HPRO_20196_55073,00.html?c=486&videoid=63315

 Green home building is a fast-developing segment of the industry, and has acquired enthusiastic support among consumers during the past few years. Unfortunately, the consumer perception of what “green building” means frequently differs from what builders think it means. To make matter worse there are builders who are being careless in marketing their green-built homes, using vague, undefined terms and phrases. Certainly don’t diminish ‘your’ or ‘your clients’ enthusiasm for green building, but don’t let it carry you away and lead you to make costly representations that cannot be substantiated. The market for green homes is still young, and mistakes will be made as it continues to mature and grow. Unexpected problems will arise, and some of them will be the direct result of vague marketing and unmet expectations. Builders getting involved in green building must plan ahead to minimize risk and protect their businesses. One of the major issues in the green building industry is the fact that commonly-used terms and catch-phrases are largely undefined, vague, and are sometimes used interchangeably. This generates confusion for everyone involved (customer and builder), and as a result, your customers’ expectations of the green homes you build could be wildly different from reality. The end result is that your company could be held liable. An important tip is: don’t throw around words like “green” or “sustainable” without knowing what they mean and defining them for your customers. Hire a lawyer familiar with the building industry to review all marketing materials to ensure you’re not making vague claims that could get you in trouble later on. The more subjective and undefined you’re marketing materials, the greater your potential for liability. Only make claims of home performance that are measurable and ones that can be backed up with third-party testing or verification. You must manage your customers’ expectations by clearly stating your definition of a green home and what they can expect from the green homes you build; by providing third-party-verified performance data; and by keeping away from any claims of health benefits, which are subjective and not measureable. An area of probable concern for green builders has been indentified as “breach of contract”. Contracts can be broken in many ways, but for green homes failure to achieve certification, cost overruns, change orders, and delays are most likely to be the cause. Builders must plan for these possibilities and ensure contracts outline their liability. Green home building tends to attract a self-selecting demographic. These people tend to either be very concerned about their personal environmental impact or to be those with health issues who believe that a green home will help alleviate or mitigate the effects of their health conditions. These customers will be more concerned about the actual performance of your green homes than regular buyers for who “green” is just an added feature. And if their home does not perform to their expectations, they are likely to take legal action. Some mistakes to beware of committing in your marketing of green homes include overstatement of benefits or performance; misrepresentation, non-disclosure, and making vague, misleading claims or subjective, unverified statements. The Federal Trade Commission, which regulates marketing claims in all industries, will be revisiting and updating its “Guides for the Use of Environmental Marketing Claims” (or green guides) in Fall 2008, and will be expanding them to include guidelines for green building marketing, sustainability claims, and carbon offset claims Visit The Federal Trade Commission’s website @. http://www.ftc.gov/ for consumer information. Warranties are another area of concern for green builders, as performance is a major aspect of a green home. Attempting to warrant functionality or performance is strongly advised against; only warrant workmanship, materials, and compliance with building codes. Performance claims in marketing material could be construed as part of the warranty by courts. Builders can take several proactive measures to ensure they are protected when things go wrong, starting with a well-drafted contract that includes costs, considers change orders and delays, and includes an escalation clause. Next, builders must specify which green building program or standard the home will be built to meet, define terms, and identify allowable materials substitutes. The contract also should include escape provisions for failure to obtain certification, which can include suspension of work or termination of contract.