New Homes
New Homes
Kudos to MHBA's 75th-anniversary year
As 2012 draws to a close and a new year begins, the Manitoba Home Builders' Association wants to take this opportunity to recognize and thank those people who made this past year a success.
The residential construction industry is a huge part of Manitoba's economy, accounting for a $3-billion impact -- more than 24,300 jobs and $1.2 billion in wages and generating hundreds of millions of dollars in government tax revenue.
Of course, initial kudos must go to the volunteers and staff that drive the MHBA. There are 10 standing committees of the association with approximately 10 representatives per committee. That means 100 people are giving their time and expertise to the MHBA each year.
That means that numerous companies recognize the importance of being involved in their professional association. It doesn't work without this kind of commitment.
The MHBA presents both large and small events. The Spring and Fall Parades of Homes are the largest and best run in Canada. The Home Expressions Show in March and the Kitchen Bath and Renovation Show in January are the largest events held in the Convention Centre. More than
120,000 people attend these four very public events annually.
The MHBA also hosts Housing Forums, educational seminars, awards evenings, dinner meetings, golf and curling outings and a variety of other activities that encourage interaction and professional development among members.
A huge thank-you goes to all of the various sponsors, too many to list, but many of whom can be found in the individual categories of the MHBA web site.
Legislation, policies, practices and procedures can be frustrating at the best of times. However, without full consultation, they can be almost impossible. Recognition and thanks must go to the open door policies of the Province of Manitoba and the City of Winnipeg.
The MHBA is the envy of other local and provincial home builders' associations due to the co-operative rather than confrontational approach taken by the city and province.
Local media ask tough but fair questions and report things as they are.
Fellow industry associations bond together for a common cause. And let's never forget those charitable organizations (especially Habitat and Variety) who are so close to our hearts and recognize the importance of housing.
This past year was the 75th anniversary of the MHBA. Thank you to everyone who made it a tremendous year.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Don't tar Manitoba with the same economic brush
The Canadian Home Builders' Association recently published its monthly economic update, evaluating most of the factors that impact the residential construction market in Canada and explaining why we are where we are and where we're headed.
As I've said in the past, employment figures and consistency of employment tend to be the largest indicators for the housing market. Canada's unemployment rate continues to inch higher and, even though Manitoba's rate is a full two percentage points below the national average, all eyes will be on this measurement.
With Canada's GDP growing at a barely noticeable rate, other factors come into play like motor-vehicle sales, which are a good indicator of overall consumer trends. Nationally and locally, these sales are increasing slightly. This is good news in that it implies healthy consumer confidence.
Interest rates in the United States will be locked at record low levels throughout 2013 and therefore will remain low in Canada too, another good indicator for the housing industry.
As I say in this column time after time, be very wary of reports out of Toronto that say Canada's economy is softening. Their Canada consists of one city; maybe two. Our Canada goes from coast to coast and includes every province and city.
Economic conditions have softened in Ontario and British Columbia, whereas Atlantic Canada and the rest of the West are strong.
With residential construction starting to rebound in the U.S., look for lumber and other building materials to increase in price in the near future. Hurricane Sandy also increased demand for materials south of the border.
Renovation spending has increased slightly on a national scale, although not to the level originally anticipated. The key indicators are hardware-type store sales and existing home sales (people tend to renovate before they list a home and after they buy one).
This is not the same case in Manitoba where resale-home demand continues to grow.
Canadian residential building permit data indicates that starts will decline slightly in 2013. However, one has to look at where that decline will take place before getting nervous.
High-rise starts are expected to decline by 30 per cent and low-rise sales will be primarily impacted by land availability. Guess where these two factors are the greatest? Not Manitoba.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
New-home warranty law a win-win-win
On November 22, Minister Jim Rondeau announced the introduction of a New Home Warranty Act for Manitoba.
The purpose of this legislation is to ensure that all new homes built for sale are covered by a warranty against defects in materials and labour and also against structural defects. All home builders and warranty providers must be registered under the act, and only registered builders will be permitted to build homes for others or for sale.
The legislation will be a result of considerable consultation with consumer groups, housing boards, government staff, architects, engineers, lawyers, builders and warranty providers. It was definitely an exhaustive process, a number of years in the making.
Only two other provinces, Ontario and British Columbia, have mandatory new-home warranty requirements. In Ontario, the warranty program is operated by a Crown corporation. It is quite a coup that Manitoba is taking the initiative to implement warranty legislation here.
New-home warranty legislation is a win-win-win for consumers, builders and the province as a whole. Consumers will be assured that no matter who builds their home, it will come with a warranty program commensurate with all other new home buyers.
While most new homes in Manitoba are built to the highest of standards, if something does go wrong, consumers will have stronger protection to get their homes repaired.
Although the first big hurdle has been cleared, everyone should be aware that there is still much work to do. The bill has been introduced in the legislature. Like all bills, it must go through three readings and committee hearings before receiving Royal Assent.
In addition, passing the Act is only one part of the process. There are a number of regulations that must accompany this Act. Most of these are precise technical specifications that will require careful wording in order to cover every imaginable occurrence.
Fortunately, many of these regulations have been discussed at length already and so the government is not starting from scratch. Industry experts, consumer groups and provincial staff are all focused on seeing this through.
All parties are committed to ensuring that a Made in Manitoba solution is created for the benefit of all Manitobans.
Mike Moore is president of the Manitoba Home Builders' Association.