New Homes

New Homes

Manitoba is expected to enjoy steady growth next year

THE health of Manitoba's new housing market has been discussed in detail each week in this column. Starts in 2010 have been up sharply from 2009 and the growth has been credited to the province's fast rebound from the recession, continued strong immigration and favourable employment statistics.

However, how does Manitoba fare in comparison to the rest of the country? What factors in other provinces most heavily impact their new housing market? Are there issues that may come into play here at a later date?

Manitoba's net migration is performing very well in 2010, primarily at the expense of B.C. and Alberta, both experiencing sharp declines from last year. This is then reflected in the prices of new homes, where Alberta is showing the slowest growth in Canada.

Growth in Atlantic Canada has been solid for the past five years, particularly in Newfoundland, but with slower employment growth and a weakening in migration, the demand for new housing is expected to reduce.

Quebec has been long reliant on stimulus spending for its growth. With a reduction in available funds and a need to get a better handle on their budget, one can anticipate a flattening of the economy.

Some would have us believe that as Ontario goes, so goes the Canadian economy. In housing, this is not the case. Single family detached starts continue to slow in major urban markets but sales of condominiums are expected to rise.

Saskatchewan has experienced a strong rebound in 2010 after a disastrous 2009. Prior to that, Saskatchewan was growing at a phenomenal rate. It was then anticipated that 2011 would drop back down to previous levels again.

However, favourable job creation coupled with positive migration should keep start levels steady.

Alberta has had three very bad years in a row and 2011 doesn't look any better. The good news is that the bleeding has stopped and with employment recovery will come the need for housing.

Affordability is always an issue in B.C. With the overseas investment still questionable and the uncertainty of their future with the harmonized sales tax, B.C. is likely to remain flat in terms of growth potential in the near future.

Over the coming year, look for the Manitoba market to compare favourably with the rest of Canada and continue to enjoy steady growth.

Mike Moore is president of the Manitoba Home Builders' Association.

 

Mike Moore
November 27

New Homes

Housing forecast is sunny for Manitobans

THE Canadian Mortgage and Housing Corporation recently released its projections for the remainder of 2010 and through 2011 and the news is good for Manitobans. Our province experienced a rejuvenation of sorts this year in all categories, thereby allowing the consumer variety of choice in the coming year.

Manitoba new home starts reached an all-time high of 5,537 in 2008, but fell off sharply in 2009 to 4,174. Although our decline was far less pronounced than Saskatchewan and B.C., it still had a significant impact.

In Manitoba, more than $1.1 billion in wages and 24,900 jobs are reliant on the residential construction industry and so a drop of 25 per cent in production can cause a stir. However, Manitoba persevered very well through the worldwide economic downturn and came back even stronger in 2010. CMHC projections for this current year hover around 5,500 starts, a remarkable rebound.

Looking at particular segments of the market, single family detached starts did not decline nearly to the level of the multi-family starts in 2009. Saying that, the SFD sector still had a terrific year in 2010 and is at a level commensurate with the banner years of 2007 and 2008.

Projected to increase by 20 per cent this year, those numbers should be pretty well on par next year, too. Although mortgage rates may increase slightly in 2011, it should not be enough to deter the new home buyer.

Multi-family starts this year will more than double last year's. A lot of this activity was compensation for a lost previous year; however the CMHC anticipates close to similar production in that sector in 2011.

All of this projected residential construction activity spells good news for Manitoba's economy. However, we still must remain vigilant in ensuring that new home price affordability remains a constant here. Maintaining low interest rates for mortgages is critically important to new home buyers.

Of similar importance is the need to keep government-imposed charges to a minimum. Additional taxes, fees, building code changes and energy, water and fire code changes all have a price to them. That price impacts the consumer's ability to buy.

However, if all parties keep their eye on the prize, that being keeping Manitoba the most affordable province to live in, we will all win.

 

Mike Moore is president of the Manitoba Home Builders' Association.

Mike Moore
November 20

New Homes

Best of multiple worlds

Bill Thiessen remembers the day he got the call about Vasa Lund's newest 55-plus project, Vasa Lund Place.

"It was about one-and-a-half years ago," he recalls. "They'd already built Vasa Lund Estates, and the public reaction to it (a 55-plus complex for active seniors) had been tremendous. They'd been working on the concept for several years; they knew they had a really nice piece of land that could accommodate a second phase."

Today -- after working with Thiessen, who has long specialized in selling condominiums city-wide -- to get the design details of the new complex just right, Vasa Lund Place is due to start construction in the spring.

"Construction of the complex should start in about six months. We expect it to be complete in about two years," he says. "Needless to say, we're very excited. So far -- we've yet to put in our first ad -- we've had over 50 quality calls from people who've seen the sign we posted out front. There's a real need for another 55-plus complex in the city's western side. It's going to go a long way toward filling that void."

There's little wonder why there have been so many inquiries. For starters, there's Vasa Lund Place's location, which will be set on a large, gently rolling tract of land located between Vasa Lund Estates and the Swedish Canadian Home.

The development -- which will be three-storeys high -- will contain 80 two-bedroom suites ranging in size from 1,197 sq. ft. to 1,434 sq. ft. Its surroundings figure to be private and attractive, with the complex set well back from Roblin Boulevard with generous green space and thoughtful landscaping features that will incorporate access to a natural riverbank forest.

"That's what makes this development different -- the natural forest in behind has been maintained. Walking trails with stone patios have been carved in, and the area is well lit. In short, the river has been made into a very accessible amenity," Thiessen says. "It's as good as you get inside city limits -- it's like being in the country with all the natural beauty, and the quiet, private location."

Meanwhile, the amenities inside figure to be top-notch. The suites themselves will be spacious, averaging about 1,300-plus sq. ft. in size. There will be three elevators to provide easy access to each floor, with the building being an all-concrete structure (making for a quiet, fire-resistant dwelling). Each open-concept suite will come with two bedrooms, two bathrooms and den or sunroom options.

"The designers (Affinity Architects) put in tons of really useful amenities," adds Thiessen. "There will be multi-purpose and crafts rooms, a TV room, billiards lounge, woodworking shop and a library. One of the nicest amenities will be a (full) commercial warming kitchen, where residents can have a caterer come in and do an event for up to 150 people. It's a development made for active people who enjoy socializing."

Thiessen says residents will also enjoy the suites themselves.

"Not only will they be big, but they'll be open-concept with high-end finishes. One of the highlights will be a breakfast nook (with glazing on all sides) that in reality is a sunroom. There'll not only be lots of natural light, but flow will also be excellent as the living room, dining room and kitchen will open up onto each other in one big area. It will also be a handicap-friendly design with generous turning radiuses in the rooms."

Once complete, Vasa Lund Place will be a not-for-profit, life-lease project that will provide active seniors with the opportunity to invest in an affordable, well-designed, secure complex in a desirable location.

"The entrance fee will be approximately $170,000 (about half the cost of the suite), with condominium fees falling in the $1,700 per month range," he adds. "That fee will include the mortgage, utilities, insurance -- everything but phone and cable."

Due to the strong early reaction to the project -- and the fact that Vasa Lund Estates has been so popular -- Thiessen says to reserve your suite now.

"We're taking expressions of interest now," he says. "Everything in this project has been done at a very high level, from the amenities, to the suites to the location. If you're looking for style, value and a great location, this is it."

lewys@mts.net

Todd Lewys
November 13

New Homes

Record entries as renovators honoured

THE RenoMark Renovators Council of the Manitoba Home Builders' Association held its annual Renovation of the Year Awards Night on Nov. 5 at the Victoria Inn.

A record 44 entries were received in six categories from 10 renovators. Six judges reviewed and evaluated all 44 entries, scoring them on criteria devised specifically for this competition. The quality of work was amazing and all 44 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 sub-categories by price point to enable the judges to fairly compare one project to another. Following are the award recipients by category:

Category I --Additions

Gold:-- I.R.I.S. Contractors

Gold:-- All Canadian Renovations

Gold: Oswald Construction

Special Recognition Award: All Canadian Renovations

Category II --Kitchens

Gold:-- All Canadian Renovations

Silver: Hands-On Design

Gold:-- Harwood Design Builders

Silver:-- All Canadian Renovations

Gold:-- Oswald Construction

Category III --Bathrooms

Gold:-- All Canadian Renovations

Silver: --All Canadian Renovations

Gold:-- Trikor Builders

Special Recognition Award --: Dynasty Bathrooms

Category IV --Basements

Gold:-- Sakiyama Construction

Gold:-- Southwynn Homes

Category V --Exteriors

Gold:-- Hands-On Design

Special Recognition Award: Southwynn Homes

Category VI --Whole House

Gold:-- All Canadian Renovations

Gold:-- Character Homes

Special Recognition Award: Trikor Builders

Special Recognition Award: Sakiyama Construction

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. 14-16, 2011 at the Winnipeg Convention Centre.

For a complete listing of all MHBA renovators and more information on the RenoMark quality guarantee, visit the Manitoba Home Builders' Association website at www.homebuilders.mb.ca

 

Mike Moore is president of the Manitoba Home Builders' Association.

Mike Moore
November 13