New Homes
New Homes
Sunny forecast for new home construction
THE Canadian Mortgage and Housing Corporation released its projections for Manitoba and Winnipeg this week and all signs point towards a continued strong market for new home construction.
From a provincial perspective, 2010 saw a huge increase in starts from the economic downturn that we all experienced in 2009. In fact, the 5,888 starts last year represented the most in the past 23 years. Of course, that kind of growth cannot be expected to continue every year.
The CMHC projection for this year is 5,225 starts with an increase to 5,400 in 2012. The Manitoba Home Builders' Association has maintained that anything over 5,000 represents an extremely good year, so the growth that is called for over the next two years is very good news.
Despite the moderate decline projected, the numbers in Winnipeg remain consistently strong. The 3,244 starts in 2010 represented a 60 per cent increase over 2009. Again, no reasonable person would expect that outstanding pace to continue.
However, the projected start numbers for 2011 only indicate a decline of 71 units. Single-family detached starts continue to increase year over year.
The small decline in starts is borne entirely by multi-family production.
The 2012 forecast calls for 3,200 total units.
The very small drop in starts this year appears to be occurring outside of Winnipeg. Without having to investigate any trends or economic patterns, it would not be unreasonable to assume that the flooding of both the Red and Assiniboine Rivers this spring had a significant impact in the surrounding areas.
Protecting everything you have must take priority. Neighbours helping neighbours was the order of the day. Although it's next to impossible to make up for lost time this year, look for those areas to make up those numbers in the near future. The demand is simply too high.
The MLS resale projection numbers spell good news for the new home market. A vibrant resale market enables sellers to move up to that new dream home they have been planning.
With the recent release that mortgage rates are expected to remain unchanged for the rest of this year, it remains a great time to build your new home.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
New home construction remains resilient
Manitoba new home starts are performing at an amazingly resilient level.
We are on pace to have between 5,300 and 5,400 starts for the year.
Although that is down slightly from the 5,888 starts in 2010, it still represents a very productive year.
The production in 2010 represented the greatest number in any one year for the past 23 years. A slight decline for 2011 was an inevitability, given that a number of large multi-family projects originally slated for this year were commenced last year due to increased demand. In reality, anything over 5,000 starts is a very good year in this province.
What makes this year's pace to date so impressive is that the lion's share of the load has had to be placed square on the shoulders of Winnipeg.
Earlier in the spring, the primary flooding fear was immediately south of Winnipeg. It then spread north of the city. Many highways and provincial roads were closed.
Necessary materials could not be transported. Skilled tradespeople were pulled away from their jobs to assist in the flood relief effort.
Residential construction in that straight north-south line slowed considerably.
Recently, flooding fears shifted to the west of Winnipeg and the Assiniboine River. From the southwest corner of the province near Melita through Brandon and Portage, flooding was reaching unprecedented levels.
Again, all efforts had to be diverted to flood protection. It was no surprise to anyone to see a decline in residential construction while this fight against Mother Nature was waged.
However, through it all, provincial start numbers remained steady with projections still hovering near the 5,400 mark. That is primarily because starts in Winnipeg are very strong with new home demand almost as high as last year's record demand.
When the river levels go down and life returns to normal, look for starts outside Winnipeg to return with a vengeance. The shortened spring season just means summer will be that much more productive.
Manitobans are accustomed to having the year interrupted by bitterly cold stretches in winter, spring rains or flood threats. However, our resiliency is legendary and we always rise to the occasion.
Even with a temporary dip in housing starts in areas outside Winnipeg, new home starts remain vibrant. Look for greater balance throughout the rest of the year as things return to normal throughout Manitoba.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Tightest new houses in Canada built here
I was reading the most recent issue of the Solplan Review recently when a particular article caught my eye. The Solplan Review is the independent review of energy conservation building science and construction practice and is published in Vancouver.
The article compared energy consumption in homes in Vancouver, Calgary and Toronto. It discussed air quality, ventilation systems and air exchanges in these homes. The results of this study are immaterial unless, of course, you are planning on moving to one of three cities in the near future. If you are, bring money, because you won't find prices like we have here.
What I found particularly interesting was the discussion concerning air tightness in new home construction. It stated that coastal British Columbia had the loosest houses in the country. This makes sense given the weather there, where there would not be a tremendous need for air tightness, and that other aspects of the house (ie. water penetration) might receive a greater priority.
Water penetration is not the same issue here that it is in B.C., but cold weather certainly is a factor. The article went on to say that Manitoba has the tightest new houses in Canada, and by quite a bit over some other regions.
This may not seem surprising, given our cold weather, but it's still nice to hear from an independent third party. The Manitoba Home Builders' Association has been saying that the best built and most energy efficient new homes are being constructed right here. Backup data corroborating this is a bonus.
Air tightness in a home is important to us in the winter. We just survived a long, cold winter and appreciated the additional warmth that resulted from our superior construction. However, if Environment Canada's projections for the long weekend hold true, air tightness in your new home won't be important over the next few days as we throw open our windows and allow the gentle breezes, fresh air and warm weather into our homes.
Manitoba new homes: Built better for Manitoba weather.
Mike Moore is president of the Manitoba Home Builders' Association.