Tag Archives: construction

Where’d yo job go? Build or perish.

Good news!

There was a big jump in full time jobs in February!

The bad news?

Some people think this is ‘unsustainable‘ because most of the jobs were in construction or ‘public sector’ and the recent drop in oil prices may have an effect on these parts of the economy.

Screenshot 2015-03-29 18.03.24

 

But in the meanwhile if you’re looking for work and want to know who’s hiring find your nearest construction pit or government office.

Read the original article over at wolfstreet.

Sunshine coasts largest developer files for Bankruptcy

Last week over at VancouverPeak Skook posted about the bankruptcy filing of Wakefield Construction.

We missed that posting here at VancouverCondo.info, but it’s got some interesting details about the impact to the economy and a number of subcontractors on the sunshine coast, Vancouver, Whistler and Bowen Island.

There are no winners in this situation – not the employees, not the subcontractors, not the local businesses nor suppliers, not the community and not Lance Sparling. As the list of “Unsecured” creditors shows, he borrowed from himself, too, to keep the ball rolling. His waterfront home was put on the market a year ago and remains unsold despite a -25% drop in the list price; but, as we know those million dollar plus properties have been slow to move on the Sunshine Coast – only 17 sold in 2014 out of a total of 123 listed – that’s barely 14%.

Skook also relates a personal memory:

Like so many others living in and north of Sechelt I wondered what would replace the old “Wake-in-the-Field” Inn and then was fascinated by those uniquely curved roofs of that replacement – the Wakefield Beach development. When I moved down to Sechelt, I had the opportunity to walk through the project and it is a very special and attractive development. The company, Wakefield Construction, was born from that development and at least in this instance the company name lives on.

While Skooks posting is almost nostalgic in tone, the first major media to pick up this story is Business in Vancouver. In their story the Realtor is surprised:

“They ruled the world up here,” said Sechelt realtor Susanne Jorgenson,” “I don’t know how they could have failed.”

..The chamber of commerce is shocked:

“I was shocked,” said Kim Darwin, president of the Sechelt and District Chamber of Commerce. “[The Coast] has a number of new construction projects coming up, so I hope our smaller contractors can step up.”

And the customer is angry:

“They screwed a lot of people,” said Brad Copping, general manager of South Coast Ford Sales Ltd., which had hired Wakefield Construction to complete a 9,000-square-foot addition to its Sechelt dealership. Copping is now paying three of the former Wakefield employees to continue work that is now half complete.

“This will cost a couple of hundred thousand dollars,” said Copping, whose company is not on the creditor list. “They [Wakefield Construction] over billed us and then didn’t pay their sub-contractors. So we are paying twice for the same work.”

Read the full article over at Business In Vancouver.

 

Builders stop building in a bubble?

Markoz left this comment in yesterdays thread, but it got held up in moderation because it had more than two links:

My wife works at a bank and her boss sent a link to this BIV article entitled, “Nobel economist housing bubble formula shows Vancouver resistant.

Here is a copy of my response (unfortunately the charts I clipped won’t paste into the comment section):
His theory (as presented by the article’s writer at least) is that builders are smart enough to stop building before/when a bubble pops. I’m not sure if he means that a slow down in building is a precursor to a bubble popping or if he means that when sales drop so do housing starts. In Vancouver, housing starts only dropped off significantly well after sales did in 2008.

Vancouver sales began to tank in March or April of 2008.

Residential property sales in Greater Vancouver totalled 2,997 in March 2008, a decline of 16.3 per cent from the 3,582 residential sales recorded in March 2007, and a decline of 25.7 per cent compared to the 4,033 sales in March 2006.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,218 in April 2008, a decline of five per cent from the 3,387 sales recorded in April 2007, and a 3.8 per cent drop from the 3,345 sales in April 2006.

VANCOUVER – The Greater Vancouver housing market continued its re-balance between sales and listings last month. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 30.7 per cent in May 2008 to 3,002 from the 4,331 sales recorded in May 2007.
All of the above is from the REGBV website: http://www.rebgv.org/monthly-reports?month=May&year=2008
It just kept getting worse:http://www.huffingtonpost.ca/2012/07/04/vancouver-home-sales-10-year-low_n_1649539.html

“This summer, sales went off a cliff,” added Somerville, who is director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C.:http://www.canada.com/vancouversun/news/business/story.html?id=e6e0c211-fddd-413b-9a94-3564e20567d8

The financial crisis did not start until Lehman Bros failed on September 15, 2008.

Here are the housing starts specs:

Apparently our builders aren’t as smart as the Nobel Laureate. Starts for all types of homes stayed above the average for 2004-2008 till the end of 2008. They plummeted after the fact. Perhaps the writer is putting his own spin on what Smith said. I wasn’t there so I don’t know.

The other thing to note is that the writer never actually asked Smith if he thought Vancouver was in a bubble. He did a follow up interview with him but seems to have avoided asking the question directly. He says, “Using Smith’s formula for housing bubble-burst scenarios, B.C. and Vancouver do not appear threatened, despite record-high prices in the latter. B.C. housing starts this year are up 3.1% from 2013 and forecast to rise a further 1.4% in 2015, according to Canada Mortgage and Housing Corp.” Why not just ask him what he thought instead of making a supposition?

Leaky condo crisis rears its wet ugly head again

If you’ve been in Vancouver for a while you might remember the ‘leaky condo crisis’.

That crisis peaked about 15 years ago, and its still a common site to see condo buildings under tarps.

Unfortunately there are some reports we’re not out of the woods yet on building maintenance and construction quality.

This article in the Vancouver Sun talks goes over the crisis and how many moist condo units may still be out there.

In response to the last round of the crisis, the government introduced a new requirement for depreciation reports on strata property.

However, stratas have the option to exempt themselves from the requirement by agreement of three-quarters of their members.

Gioventu said that provision was put in to accommodate commercial-property stratas or strata-ownership arrangements on bare land where owners build their own homes and have no common services.

He said there there is no doubt some older residential strata corporations are exempting themselves because they know a depreciation report is “going to give them an ugly picture,” but the market is going to catch up with those situations when banks refusing financing on sales without the reports.

Gioventu said if there is a common theme, it is that “strata corporations have not been maintaining their buildings,” which is evident in problems that are cropping up with building decks and balconies, roofing systems and windows.

If you’re shopping for a condo how important is a depreciation report to you? Are you concerned about the history of leaky condos in Vancouver?

FFFA! Canada, Construction, Condos, Confidence

Wake up!

Grab some coffee and some left-over halloween candy, it’s Free-for-all time!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Ready to count BOC out of rate hike?
Consumer confidence falling
‘red mitten’ benefit from winter games
Flaherty to give market a talking to
Housing Analysis construction activity
Buying Genworth?
Preparing for a stock market correction
Can we have some accurate data?
The foreclosure cup
Where’s the next property bubble?
Best places to retire

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!