New Homes
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.
New Homes
Parade show homes open year-round
Although the 2012 Fall Parade of Homes has formally ended, you still have plenty of opportunity to revisit those fantastic show homes that you saw during the three weeks of Parade.
Once again, tremendous crowds enjoyed the fabulous weather and came out interested in visiting the 126 new show homes. It was a whirlwind tour for many and one couldn't be expected to visit every home, no matter how hard they tried. I know I certainly did.
Many people have the mistaken notion that show homes are only open during the Spring and Fall Parade of Homes. Therefore, they try to get in as much viewing time as possible during the three weeks of each Parade and bemoan the fact that they missed others.
In fact, they are open year-round and, although the hours may not be the same as during Parade, they are able to accommodate all interested clients.
So, now that your interest in a new home has been piqued by the Fall Parade, the timing is perfect to follow up with another visit.
The crowds are always huge for the three weeks of Parade. Although you received an excellent welcome and introduction to each new home, it was undoubtedly busy and it may have been difficult for you to have a private conversation with the sales representative regarding the more intricate details of the new home.
The purchase of a new home is an important decision and, now that you have visited the best new homes in Manitoba, you undoubtedly have a number of questions that you would like to ask.
You can see the entire Parade of Homes magazine with all 126 of the wonderful houses on the Manitoba Home Builders' Association website at www.homebuilders.mb.ca or the Winnipeg Free Press website at www.winnipegfreepress.com. The magazine has a listing of all of the homes, where they are located, a brief description of each and the base and selling prices.
Whether it was the neighbourhood or the builder or the particular home that interested you, it's all in the Parade magazine.
The important thing to remember is that almost all of the fabulous show homes that you saw during the Fall Parade of Homes are still available for viewing. The Parade may be over but the opportunity to purchase your new dream home has just begun.
Mike Moore is president of the Manitoba Home Builders' Association.
