Minutes of Annual General Meeting
February 18, 2009
12 noon
Parksville Community & Conference Centre
In Attendance: Michelle Jones, Chair Bruce Cownden
Bill Katerenchuk Shirley Wright
Marjorie Picard Denise Sakai
Helen Sims Guy Fletcher
Egon Kuhn James Klassen
Bob Dean Dan McLeod
Maureen Pilcher Duane Round
Shawn Bennett Bud Shelly
Kim Burden Bon Thorburn
George Hanson
Guests: Councillor Al Greir, City of Parksville
Marilyn Hayden, Recording Secretary
Guest Speakers: York Langerfeld, Manager QB TD Canada Trust
Ross Gurney, Manager Business Development for TD Commercial
Banking, BC Real Estate Group
President, Greater Vancouver Home Builders Assoc. (GVHBA)
Jim Kupiak, Manager Parksville TD Canada Trust
Michelle Jones called the meeting to order at 12:15 P.M. and introductions were made around the table. Michelle introduced and welcomed guest speakers.
York Langerfeld thanked the ODCA for the invitation to address the meeting and turned the presentation over to Ross Gurney.
· 2009 is going to be a year of challenge especially in real estate.
· Consumer confidence has been shaken and fear has driven the buyer to the sidelines.
· The GVHBA is hiring a media person to address negative media coverage and is working with Black Press to provide information relative to purchasers’ purchasing new homes. If it works, it may come over to the island.
· The housing cycle requires team work. This is not a time to hang our heads, we must keep positive.
· Household finances are stronger in Canada than in the USA.
· The cause of the economic crisis is greed.
· The flow of credit has not been frozen.
· The construction industry is going to be hit the hardest in this economic down turn.
· The 2010 Olympics will have a positive value.
· The fundamentals are all still in place and BC has the best chance to come out of it in Canada. At the present time Langley BC has 3,000 lots on the market, Surrey BC has 2,000 lots on the market and Edmonton AB has 11,000 lots on the market. Alberta and Ontario are going to be hit the hardest in Canada.
· The quicker the market hits the bottom of the market, the sooner it will be to come up.
· House sales are happening on the lower mainland. Ex. a $580,000 house is down to $420,000 and 15 have been sold in a 2 week period. The key to sales is good sales people. Buyers are looking at a paying $500,000 for a new home compared to $550,000 for a 30 year old home. New home sales will out produce used homes.
· Richmond is in the process of reducing DCC’s to assist the market. Government imposed costs in Surrey are $87,000.
· Detailed tool kits on new costs imposed on new housing are available on the CHBA website or from your local Home Builder’s Assoc. Marilyn will contact Ross for a copy and make it available for the membership.
Credit Market
· Suggest that builders and developers only deal with real estate lenders.
· Many lenders are off the market and not lending. TD Canada Trust is still lending.
· TD Canada Trust looks at security and equity and deal with experienced developers and builders and tend to stay away from amateurs.
· There are 2 types of lenders, the money pushers and the relationship builders. TD Canada Trust is a relationship lender. The lender should give you market information.
· It is most important for developers and builders to have deep pockets with other sources of capital outside of the project in today’s market.
· Developers and builders must always be in control. You never want to lose control. Always be the boss and always be in control.
Questions
· What are you seeing in repossessions?
o No personal repossessions.
o Some development repossessions especially through Credit Unions.
· When do you see resale market prices coming down?
o Ex. $368,000 condo price with a mortgage of $2,600/mon. is now $1,800/mon.
o Stripped down models are selling. Ex. laminate instead of hardwood, formica instead of granite.
· Building costs are down 10 – 15%. It makes sense to get rid of high priced inventory. The market will change after we get rid of inventory. What is your opinion?
o I agree and wake up every morning saying it is 1 day closer to a hot market.
Discussion followed.
Michelle Jones thanked Ross Gurney for his interesting and informative presentation and discussion. Michelle expressed a big thank you for presenting some hope rather than all the doom and gloom reported by the media.
York Langerfeld, Ross Gurney and Jim Kupiak departed the meeting at this time.
MOTION: Moved by Kim Burden, seconded by Maureen Pilcher to adjourn the AGM at 1:20 P.M. CARRIED