New Homes
New Homes
Professionals learn from professionals
This column has repeatedly espoused the merits of dealing with professional builders, renovators and suppliers.
Issues such as warranty, liability insurance, permits, standards and ethics, full disclosure of taxes and numerous other assurances that come with dealing with a professional are critical to getting the job done right.
One should add professional development and training to that list.
Last week, members of the Manitoba Home Builders' Association went back to school at their annual housing forum to learn from other professionals in their fields about areas important to the well-being of a business and an industry.
Eighteen unique presentations in the categories of leadership, technical, marketing and workplace environment were attended by MHBA members.
The Housing Forum presents an opportunity to interact with peers while pursuing relevant knowledge. Those that have attained the distinction of master builder or master renovator must attend a requisite number of professional development seminars or workshops every year in order to maintain that title.
The opening plenary session kicked off with Dianne Himbault, senior market analyst of the Canadian Mortgage and Housing Corporation, presenting the current state of the industry and giving insights into the coming year.
This was extremely informative and will be the subject of numerous future columns.
Diane was followed by Donald Cooper, who gave an illuminating and most entertaining presentation that dealt with selling more, managing smarter and still having a life.
The technical sessions provided invaluable information for the residential construction industry.
Within the leadership stream, presentations concentrated on creating a successful and productive workplace, customer service, a 2013 economic forecast for Canada and Manitoba and a panel discussion on the factors that impact housing affordability.
In marketing, attendees were made more aware of website optimization, positioning for success and the art of sales.
Finally, workplace environment dealt with smart hiring practices, reducing work/life conflict and the role of accident prevention.
Professionals learning from professionals; yet another reason when building, renovating or buying supplies to deal with a Manitoba Home Builders' Association member.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Housing market growing across Prairies
Although this column tends to concentrate on the Winnipeg and Manitoba housing markets, we would be remiss if we didn’t comment on the strength of the housing market right across the Prairies.
Alberta, Saskatchewan and Manitoba have all enjoyed stronger housing markets this year and the optimism continues through next year.
Both Calgary and Edmonton have increased new-home starts by almost 100 per cent since the downturn of 2009. With just over 6,300 new home starts in 2009, both cities had experienced tremendous declines from earlier boom years.
However, in 2012, both cities are likely to exceed 12,000 starts and hold to around 11,000 next year. Resale homes continue to increase in value as average prices are projected to be $422,000 in Calgary and $341,000 in Edmonton.
Growth in Saskatchewan has been nothing short of phenomenal. From 3,866 new-home starts in 2009, our neighbours to the west increased to almost 6,000 the following year, more than 7,000 in 2011 and better than 9,000 this year. They’re on track for more than 8,000 next year.
The demand for all housing in Saskatchewan is showing in price increases. The average price of a resale home in Regina is expected to hit $307,500, while in Saskatoon it will be $322,500.
In Winnipeg and throughout Manitoba, we didn’t experience the market depths that our Prairie neighbours experienced in 2009, nor did we boom to the extent they did this past year. We had fantastic growth and had the most starts in more than 25 years, but we did not double or triple our output from 2009.
Because we did not face a calamity in 2009, we have shown steady growth. Starts in Manitoba have gone from 4,174 in 2009 to 5,888 in 2010, and from 6,083 last year to 7,500 this year. We’re projected to remain at the 7,000 mark next year.
Projections have Winnipeg continuing to grow next year, with the single-family detached market remaining constant and the multi-family sector showing a slight increase in.
This more managed growth in Winnipeg is reflected in our resale home prices which are projected to average $265,000 — between $40,000 and $157,000 less than the extremes in Regina and Calgary.
While we continue to take pride in the strength of the new-home market in Winnipeg and Manitoba, we can see that the entire Prairie region is growing and prospering.
Mike Moore is president of the Manitoba Home Builders’ Association.
New Homes
Housing market growing across Prairies
Although this column tends to concentrate on the Winnipeg and Manitoba housing markets, we would be remiss if we didn't comment on the strength of the housing market right across the Prairies.
Alberta, Saskatchewan and Manitoba have all enjoyed stronger housing markets this year and the optimism continues through next year.
Both Calgary and Edmonton have increased new-home starts by almost 100 per cent since the downturn of 2009. With just over 6,300 new home starts in 2009, both cities had experienced tremendous declines from earlier boom years.
However, in 2012, both cities are likely to exceed 12,000 starts and hold to around 11,000 next year. Resale homes continue to increase in value as average prices are projected to be $422,000 in Calgary and $341,000 in Edmonton.
Growth in Saskatchewan has been nothing short of phenomenal. From 3,866 new-home starts in 2009, our neighbours to the west increased to almost 6,000 the following year, more than 7,000 in 2011 and better than 9,000 this year. They're on track for more than 8,000 next year.
The demand for all housing in Saskatchewan is showing in price increases. The average price of a resale home in Regina is expected to hit $307,500, while in Saskatoon it will be $322,500.
In Winnipeg and throughout Manitoba, we didn't experience the market depths that our Prairie neighbours experienced in 2009, nor did we boom to the extent they did this past year. We had fantastic growth and had the most starts in more than 25 years, but we did not double or triple our output from 2009.
Because we did not face a calamity in 2009, we have shown steady growth. Starts in Manitoba have gone from 4,174 in 2009 to 5,888 in 2010, and from 6,083 last year to 7,500 this year. We're projected to remain at the 7,000 mark next year.
Projections have Winnipeg continuing to grow next year, with the single-family detached market remaining constant and the multi-family sector showing a slight increase in.
This more managed growth in Winnipeg is reflected in our resale home prices which are projected to average $265,000 -- between $40,000 and $157,000 less than the extremes in Regina and Calgary.
While we continue to take pride in the strength of the new-home market in Winnipeg and Manitoba, we can see that the entire Prairie region is growing and prospering.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Renovations shine in award-winning style
The RenoMark Renovators Council of the Manitoba Home Builders' Association held its annual Renovation of the Year Awards Night on Nov. 2 at the Norwood Hotel.
A total of 27 entries were received in six categories. A panel of judges reviewed and evaluated all entries, scoring them on criteria devised specifically for this competition. The quality of work was amazing and all 27 projects were on display on signs posted in the banquet room. Competition was extremely close and only a point or two separated many entrants.
Each category was broken into subcategories by price point to enable the judges to fairly compare one project to another. The categories and descriptions of each were as follows:
Additions: Any project that increases the enclosed square footage of a home for use on a year round basis. Winning entrants were Rempel Builders and I.R.I.S Contractors.
Kitchens: Any kitchen project that changes layout and/or cabinetry in the interests of improving traffic flow and/or changing appearance of the overall kitchen. Winning entrants were Home and Renovation Masters and Harwood Design Builders.
Bathrooms: Any bathroom project that involves new fixtures, resurfacing walls and floors, and/or changing size or layout. The winning entrant was Rempel Builders.
Exteriors: Any project that changes the exterior appearance of the home. Winners were Home and Renovation Masters and I.R.I.S Contractors.
Outdoor Structures: Any project that changes or adds to an outdoor structure. This includes decks, pagodas, three season sunrooms, detached gazebos and patios. The winning entrant was Rempel Builders.
Whole House: Any project that changes at least 75 per cent of a home's interior square footage. Winners were Kelly Homes, Character Homes, I.R.I.S Contractors and Rempel Builders.
Congratulations and thanks go to all participants in this year's event.
A considerable amount of work goes into the preparation of each entry. All entries will be on display at the Ask A Renovator booth at the Kitchen Bath and Renovation Show Jan. 11-13 at the Winnipeg Convention Centre.
Numerous MHBA Renovator members will be there to answer your renovation questions.
For a complete listing of all MHBA renovators and more information on the RenoMark quality code, visit the Manitoba Home Builders' Association web site at www.homebuilders.mb.ca
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Study indicates continued growth in Manitoba
I recently attended a session at a national meeting that dealt with forecasting impacts on Canadian urban centres specifically in relation to low rise or single family detached housing.
Although an analysis of the situations in Toronto and Vancouver prompted the study, the researcher also looked at 12 other Canadian cities.
Naturally, one of the biggest concerns in Toronto and Vancouver was land supply. It was contended that both cities have essentially grown to the limits of their boundaries and that is why they have been growing vertically in recent years. The other cities were not under this kind of pressure.
The contention was that employment is the biggest factor in new home starts. If unemployment rates are low, starts will be healthy. Given that the Canadian unemployment rate is around eight per cent and Manitoba remains significantly under the Canadian average, this would bode well for continued growth in new home starts here. In addition to employment rates, job growth opportunities also play a factor.
Conditions in the resale market also play a major role in new home starts. The softer the resale market, the less of a hurry the consumer is in to make a decision. They also have more time to decide between resale and new.
With a soft resale market, the opportunity for brokering a discount deal is more likely. Winnipeg has a very tight resale market with one of the lowest listings ratios in the country. With bidding wars being common and Winnipeg continuing to be a seller's market, the new home option remains attractive.
Surprisingly, the author stated that interest rates would not be as large a factor. Not that they wouldn't be a factor, but not as much as employment rates and resale market conditions. My guess is that as long as consumers are gainfully employed, Canadian financial institutions play a major role as watchdogs to ensure that we don't over-extend ourselves.
Finally, the report keys on an additional factor that impacts us here.
Immigration is a massive driver in Manitoba. We have been a national leader in aggressive immigration initiatives that have paid huge dividends for our population, our economy and new home starts. Our immigration successes need to continue for the new home market to continue to flourish.
In summary, the primary factors highlighted in this study indicate continued growth in Manitoba with a constant eye on influencing factors.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
City new-home starts enjoying growth
A recent study by the Conference Board of Canada looked at 28 municipalities across Canada with regards to housing starts. It charted these cities in terms of both short- and long-term growth potential.
Each of the 28 municipalities was then placed on a quadrant indicating short- versus long-term timelines and growth in new-home starts versus a decline in new home starts.
The study looked at four cities in Atlantic Canada, five in Quebec, 11 in Ontario and six in the west. Of particular interest to us were Regina, Saskatoon, Calgary, Edmonton, Vancouver and, of course, Winnipeg.
The results showed that 17 of the 28 municipalities were projecting short-term growth. Long-term growth was projected for 10 of the 28 municipalities.
There were five cities (Trois-Rivières, Kingston, Sudbury, St. Catherines-Niagara and Kitchener-Waterloo) for which they were calling for both short- and long-term declines. Conversely, there were four cities (Winnipeg, Toronto, London and Victoria) for which they were projecting both short- and long-term growth.
In other good news, it appears as though the export of Canadian building products is starting to turn around. With the United States historically being the largest export market for our building products, its economic situation has hit hard north of the border.
However, in 2011, Canadian exports of building products were up two per cent from the previous year. For the first six months of 2012, building product exports were up a further seven per cent. Petrochemical and asphalt products, tools and machinery and paint products saw the biggest growth, whereas wood and electrical products grew at a below average pace.
Meanwhile, although building product exports to China and the United States continue to grow, our dependence on imports from both these countries grows at an even faster pace.
Finally, renovation spending in Canada remains strong in almost all regions. The exceptions were Saskatchewan and British Columbia. B.C. is relatively easy to explain in that the selling market has been extremely quiet and therefore renovations that preclude sales have also been dormant.
Renovation spending for the first six months of the year in Manitoba is up almost 10 per cent over the same period last year, well ahead of the five per cent Canadian average.
Mike Moore is president of the Manitoba Home Builders' Association.