September 2020

All posts from September 2020

Scaling Down Homes is Trending

by Bevony on September 10, 2020 No comments
Mighty building

There has been an increase in the interest of small homes and RV model homes in the past couple of months. A factory in Oakland California is offering homeowners the option for a 3D print. They can print a 350 square foot studio in under 24 hours.  The company is called Mighty Buildings, and they have a focus on the accessory dwelling unit market. 

With a lot of uncertainty due to the pandemic more people are looking into this avenue, not just an accessory dwelling but as their main dwelling. They came up with the technology as a way to address the shortage of housing in California. They boast that they are offering a 21st-century technology to solve a crisis. 

The material being used in these structures is a quick, curing, freeform architecture that can support its weight safely. The structure you end up with an energy-efficient structure that is extremely strong. 

Sustainability

One of the key driving factors behind this printing technology is sustainability. With this technology, 3 to 5lbs of waste per square foot will not end up in a landfill.  With 3D printing, the only thing that is printed is the things that are needed. 

Cost Reductions

By cutting waste, this new technology also cuts the overall cost of the building. The average building costs with this technology are reduced by approximately 45%. The cost of labor is one of the things that affect the cost of a house the most. 3D robotics can do the more complicated and dangerous aspects of building, but human workers are still needed to complete the task, so this initiative is not taking jobs away. 

With COVID-19 motivating more people to seek financial freedom, many are downsizing their lives as a means of downsizing their expenses. In Vancouver, 3D models can be had from Mint Tiny Homes. They note that they have seen an increase in interest over the past couple of months with persons looking to downsize as they are concerned about the possibilities of job loss.  People don’t want to have large bills, and they don’t want to have large liabilities, so they are trying to get in a better financial position while they can before things get worse. We also see where people are looking more towards homes outside of the city and away from the crowds. With more people engaging in flexible working arrangements they need for living or near, the city is no longer necessary. 

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BevonyScaling Down Homes is Trending

Lower Demand Expected for the Housing Market

by Bevony on September 4, 2020 No comments

The Canada Mortgage and Housing Corp. (CMHC) has indicated that they are bracing for the COVID-19 pandemic to further impact the Canadian housing market. The short term uncertainty is significant as housing demand falls with household incomes becoming weaker and weaker. 

The sales and price records were broken in July 2020, but this was after the shut-downs in spring. So we can say the market played a little catch-up if we may say so. CHMC is noting however that the economic shock of the pandemic has not been fully reflected in the latest data on the housing market. They note that the process of the pandemic could still have a huge effect on new buildings as well as the prices and sales of existing buildings. 

We expect it to take months for these impacts to materialize, but we can see some factors already coming to play. CMHC has noted a seeing the difference in provisions for insurance claims. This is showing up in the financial results proving that the impact is far-reaching. 

CMHC’s net income for the three months prior to June 30, 2020, was $566 million. This is up from $379 million during the same period from the previous year. The arrears rate for which is 0.34%. 

While they saw this income, they also saw an increase in claims expenses, jumping to a 711% increase up by $256 million. This was due to an increase in COVID-19 related claims including mortgage deferrals. 

As part of a government program, CMHC this year purchased $5.8 billion insured mortgage pools. They also administered the small business Canada Emergency Commercial Rent assistance program. 

In the next report from CMHC, we will see what impact the stricter underwriting criteria had overall. As of July, requirements for insured mortgages have become tighter and requirements for down payments have also become tighter.  The corporation has even suspended dividends in an effort to save money in the event further action is needed by the government. 

Stick around to read more as the information unfolds. 

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BevonyLower Demand Expected for the Housing Market