Economy Thread

[ldoto]

There are six sweet spots in the London economy that could provide renewal when the recession storm clouds disappear.


Watch the Video!!!!!!

http://video.lfpress.ca/video/_/_/58.../_/26655798001

[ldoto]

Tue, June 23, 2009

CONSTRUCTION: The average price for a new home in London in April was $298,478, up $12,400 from March

Homebuilders in the London area continue to struggle, according to survey results released yesterday by the Canada Mortgage and Housing Corp.

The CMHC said 88 new homes were sold in the London-St. Thomas area in April. That was up from 51 homes sold in March but well below the 160 homes sold in the same month last year or the 228 sold in April in 2007.

The average price for a new home in April was $298,478, up from $285,998 in March.

CMHC analyst Ken Sumnall said the jump in home sales from March to April wasn't a big improvement because homes sales tend to be seasonal.

"You would expect sales to up in April," he said.




Sumnall said London area builders are trying to reduce their inventories, including selling off their model homes

The CMHC has released monthly figures on new housing starts for years but has now started reporting figures on home sales in major cities based on surveys of the major builders.

Sumnall said the new house sales are a useful tool in forecasting because they precede the construction starts by at least several months and are the first indication of changes in the market.

"The sales figures will foreshadow any upturn in the construction market," he said.

He noted this year's slump in starts was signalled by steadily dropping sales in the last nine months of 2008.

There was some good news yesterday in London's office-commercial market, with the city bucking a national trend toward higher vacancies.

A second quarter survey by CB Richard Ellis showed the national vacancy rate jumped to 8.3%, up 6.4% in the same quarter last year.

Calgary fared the worst, with vacancies surging from 4.6% to 10.2%

Although it was still well above the national rate, as it has been for years, London's vacancy rate fell from 13.9% 13.2% in the second quarter. Waterloo was the only other major city to record a decrease.

Meanwhile, yesterday, Statistics Canada said household net worth in Canada fell by $72 billion, or 1.3%, in the first quarter as falling real estate values and stock market woes continued to erode assets.

But the agency says the rate of decline has slowed from the last two quarters of 2008, in which cumulative losses totalled $438 billion.

The drop in Canada in the first quarter this year was only half the decline recorded in the United States. As a percentage of personal disposable income, household net worth has fallen faster in the United States than in Canada since the third quarter of 2007. Canadians cut their borrowing in the first quarter -- especially in new mortgages -- and growth in debt slowed to less than 1%. Total household liabilities relative to net worth edged up modestly in the first quarter, to 24.9 cents of debt for every dollar of net worth, from 24.4 cents in the fourth quarter of last year.

[ldoto]

Some encouraging signs in the local real estate market.

The London and St.Thomas Association of Realtors is reporting a 4.5% increase in home sales over June of last year.

A total of 946 homes changed hands last month. The increase in detached homes sales was 6.5% year over year, although condo sales were down 3.2%.

"We are very pleased to see a 4.5% increase in sales," says Joe Hough, LSTAR President. "2008 was a record-breaking year, so it is just outstanding to see a gain for June 2009 over June 2008. Sales may be down year-to-date, but the numbers we are seeing are still very positive."

Despite the 4.5% monthly increase, home sales for the year are still down by more than 11% from levels seen in 2008.

Still, some analysts see reason for optimism.

"Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January," says Dale Ripplinger, President of The Canadian Real Estate Association (CREA). "Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada."

Meanwhile, Peter White, the President of the London Economic Development Corporation, thinks an economic turn around the the area may not be far off.

"I don't think we're going to see one big announcement that will help change things, but I think just this continuation of small positives is going to help us build towards a recovery".

[ldoto]

Despite another drop in new home starts last month, housing analysts believe the housing slump in the London area might be bottoming out.

In July, single-detached starts were down to 105 from 137 units in the same month last year.

However, Canada Mortgage Housing Corporation market analyst for London, David Lan expects a market turn around by early next year.

"As the economy and the resale market start to recover, we expect to see some improvements in single-detached home starts in 2010," said Lan.

Year-to-date starts were down about 31 per cent with apartment starts offsetting some declines in single starts.

[MolsonExport]

the economy sucks horseshit here in London.

[GreatTallNorth2]

Well, we have had some decent news in London in the last few years.

For example: our unemployment is way up and even double digits now. How many cities can claim that? Also, we have had some of the ugliest designed buildings go up in the past few years. In fact, London has some of the ugliest buildings in Canada that are concrete from top to bottom. Surely, that will put us on the map. Our transit system is thinking different too - no express buses and no plan for real BRT or LRT.

Hey guys! You know what this means? It means our city is different! We're unique! And if Anne Marie gets voted in for the next 10 terms, which is a probability, then we might beat Windsor or Gary, Indiana as one of the worst cities in North America!

[MolsonExport]

^but we will have that bar patio on Richmond Street as a consolation prize, owned by her worship's lush of a husband.

[manny_santos]

I look forward to Anne Marie being in the mayor's office as long as Hazel McCallion, who just announced she's running for a 12th term. The year will be 2035, there will still be an absentee problem at City Hall, Ambassador London will have been revived and discontinued three times, Commissioners west of Wharncliffe will still be two lanes, and Tim Best's patio will still be there, despite him being in prison for another drinking and driving incident and the Royal Bank building being long gone and replaced with another parking lot, despite that building gaining heritage status in 2029. I don't even want to predict what London Transit will be like. On the bright side, the Knights will win the Memorial Cup for the third year in a row that year, and it will make our lives just a little more tolerable.

It's going to be a fun century guys and gals!

[MolsonExport]

^and ribfest will be on the brink, and they still will not have built that land slated for a park near my home (4 years running now, just a sign)

And they will talk about giving Oxford/Wonderland a temporary resurfacing just because Tiger Woods will be in town to play the old-timers' golf open. And dep mayor Gosnell will be still collecting fees to advise Walfart to open a new outlet in Scottsdale (taxpayers will have to pay for highway upgrades and utility infrastructure, naturally).

[ldoto]

New home starts were up in the London Census Metropolitan Area in August according to preliminary figures released today by Canada Mortgage and Housing Corporation.

The construction of a 182 unit condominium apartment building drove month-over-month construction numbers into positive territory.

Single-detached home starts were down to 123 units from the 148 units in the same month in 2008. Year-to-date starts were down about 25 per cent.

"Apartment construction remains very resilient in London," said David Lan, CMHC's London Market Analyst. "While all other segments are down, rental and condominium apartment starts together are experiencing growth this year."

In the year to date, apartment starts were 755 units compared to the 697 units in 2008.

[ldoto]

Business Leaders to Develop Economic Action Plan for London

Close to 200 local business leaders and labour representatives were on hand for a brainstorming session at the Convention Center today.

The session includes speakers and discussion groups.

They're hoping to come up with an economic action plan which will be presented to City Council.

Peter White, President of the LEDC tells AM980 what they're hoping to accomplish.

"London's a super competitive city and how we continue to build off the advantages we have and build up things like life sciences, technology or advanced manufacturing or food processing. How do we make sure we stay strong in all of our major segments".

White also says he believes London's diverse economy will help to whether the recessionary storm

[MolsonExport]

White also says he believes London's diverse economy will help to whether the recessionary storm

what the fuck? London has the second highest urban unemployment rate IN THE COUNTRY and the guy says something like this? Is he living in 2007 or something? The recession has devastated London. And the mayor/council just sit back and convene conferences/studies, and refuse to take action. More of the same, from the same. Mediocrity.

oh, and the proper word is weather.

[GreatTallNorth2]

Also we are in Canada and it's centre, not center.

I picture the mayor, city council and these business leaders sitting at MacDonalds eating hamburgers and fries and all saying to themselves "this is the best meal we've ever had". They are just a bunch of clueless people that have no business running a city with a metro population of close to 500,000 people. Sad. And our city media is just as clueless.

[manny_santos]

Originally Posted by MolsonExport

what the fuck? London has the second highest urban unemployment rate IN THE COUNTRY and the guy says something like this? Is he living in 2007 or something? The recession has devastated London. And the mayor/council just sit back and convene conferences/studies, and refuse to take action. More of the same, from the same. Mediocrity.

oh, and the proper word is weather.

A lack of diversity in the regional economy is what got us into this mess. That, and the fact we're in Ontario, which is not the most competitve business environment in North America. London isn't alone in Ontario in this mess right now, just look at Windsor and even Toronto.

[MolsonExport]

Of course. But the fact that the guy said those things...whitewashing the devastated economic landscape that is the London area...

with guys like that in charge, it is no wonder that we have ended up where we are.

[ldoto]

London's commercial real-estate market shows signs of picking up

Mon, September 21, 2009

London continues to struggle with a high commercial vacancy rate but there are signs of a strengthening market, according to a survey released today.

CB Richard Ellis (CBRE) released the third-quarter survey of commercial real estate for major Canadian markets.

London’s overall commercial vacancy rate climbed from 13.6% to 14.8%, one of the highest rates in the country.

But the survey also noted the sublet market in London, as a percentage of vacant space, dropped from 13.6% to 7.3% year-over-year, a sign the market may be picking up.

Across Canada the vacancy rate for downtown and suburban office space climbed from 6.3 % to 9.4% compared to third quarter of last year.

The rising vacancy rates were most noticeable in Vancouver, Calgary and Toronto. CBRE analysts expect the trend to continue into 2010 as the recession continues to depress demand for office and commercial space.

[sparky212]

I learned an iteresting fact at D.O the other day . OLP is 90% occupied with 40 tenants

[manny_santos]

Originally Posted by sparky212

I learned an iteresting fact at D.O the other day . OLP is 90% occupied with 40 tenants

The old CIBC building on the northeast corner of Dundas and Richmond is likely a huge contributor to the vacancy rate. I'd like to see it renovated into storefronts and upstairs apartments. That is a valuable area and it seems like such a waste right now to have that amount of empty space.

[QuantumLeap]

The total amount of leasable office space in London is around 10,000,000 sq ft, so that translates into about 1,400,000 sq ft vacant. The CIBC building at Dundas and Richmond is probably about 50,000 sq ft, and the bottom floor is likely counted as vacant retail rather than vacant office, so the building is not a major contributor to the vacancy rate. All that said, I would really like to see it developed. My longtime thought has always been that it should be an LCBO (moving the current location at York and Ridout). Hopefully it could be like Toronto's Summerhill LCBO, the flagship of the LCBO stores, which has long business hours (closes at 11) and an incredible selection, in a beautiful building.

[ldoto]

General Motors Invests $90m in Cami Ingersoll
General Motors Co. will reportedly invest nearly $100 million to increase production at an assembly plant in Ingersoll.

Sources tell the Globe and Mail the upgrade to Cami Automotive Inc. will be announced today at the facility in southwestern Ontario.

The investment is designed to boost output of the Chevrolet Equinox and GMC Terrain crossover utility vehicles.

Both have experienced hot consumer demand and in October helped GM produce its first monthly U.S. sales gain in 21 months.

Cami has the capacity to make about 250,000 vehicles a year and GM will increase that by retooling one of two body shops. Sources say the retooling will take place over the next seven months and lead to the recall of about 150 workers now on layoff.

Another 350 workers were recalled last month when GM restored a third production shift at the plant. When this project is completed, about 2,200 workers will be fully employed and none will be on layoff.