New Homes
New Homes
CMHC projections encouraging for province
Last Tuesday, the Canadian Mortgage and Housing Corporation released its housing start projections for Canada and Manitoba for 2011 and 2012. The news was positive from a Canadian perspective and even better for Manitoba.
Looking at the national forecast, chief economist Bob Dugan called for a fairly healthy GDP and low unemployment rates. He called for mortgage rates to remain at or near their lowest levels in the past 50 years.
Dugan addressed the fact that although household debt has risen steadily, assets remain many times larger than debts. In addition, the costs associated with servicing debt are quite low compared to income. He reiterated that, in general, it remains a seller's market in Canada.
Regional economist Lai Sing Louie projected an optimistic outlook for the Manitoba economy. This included continued growth in the GDP and retail sales. He noted that our manufacturing sector was starting to rebound from the past few years, although agriculture was still struggling. Employment remains strong in the province and our positive net migration was paying off with an expanded workforce.
The resale market is projected to continue to be excellent with increases in sales for both 2011 and 2012. With strong financial returns in the resale market, buyers then have the enhanced opportunity to consider building a new home.
Market analyst Fang Quin noted that our city's unemployment rate was among the lowest in the country. Although non-residential building permit values declined slightly in 2010, residential permits skyrocketed.
Concerning the Winnipeg housing market outlook, senior market analyst Diane Himbault noted that resale was back on the rise after a slight dip in 2010 and that Winnipeg active listings were among the lowest throughout the Prairies, thereby enhancing the seller's market.
However, sales were expected to remain above the 10-year average. She projected that single family detached starts would continue to increase slightly in 2011 and 2012, absorptions would continue to keep pace with completions and there would continue to be an increase in the price of new homes, primarily due to the increase in cost of serviced land.
In conclusion, all indications point to a very busy next two years in trying to satisfy the increased demand for new housing and renovations in Canada, Manitoba and Winnipeg.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
March Madness in city brings it all home
Normally, when one thinks of March Madness, the NCAA basketball tournament comes to mind. All of the excitement and hoopla that goes with it creates a month-long buzz.
However, this year, all of the March buzz is going to be associated with homes, new homes and everything you need for homes.
The annual Spring Parade of Homes runs from March 5 through March 27 this year. Due to popular demand, an additional week was added to the Spring Parade. It seems it just wasn't possible to hit all the homes people wanted to see in only two weeks.
The Spring Parade has grown so much in recent years it is practically the same size as the Fall Parade. This year, there are 95 homes entered in the Parade, presented by 37 builders in 26 subdivisions.
Watch for your Parade magazine in a couple of weeks in the Winnipeg Free Press and at Steinbach Credit Unions. Stay tuned for information about exciting new features that are being added in this year's Parade.
Also in March, immediately after the Spring Parade of Homes, is the Home Expressions Home and Garden Show at the Winnipeg Convention Centre. This is the largest consumer trade show in the city and features hundreds of exhibitors on all three floors of the convention centre.
Home Expressions starts on Thursday, March 31 and runs through Sunday, April 3. Whether you are looking at improving your home, yard, deck, garden or cottage, everything you need will be on display at the Home Expressions Show.
As a special bonus associated with Home Expressions this year, we are proud to present Mike Holmes, star of HGTV's Holmes on Homes. Mike will be speaking on Friday evening and Saturday afternoon, sharing his insights and direct approach with what undoubtedly will be a sold-out venue.
Your ticket to see Holmes also gets you into the Home Expressions Show. Tickets are available at TicketMaster and RONA outlets.
With all of the home-related information you will be able to gather in March, you will be an expert in selecting your new home or making your current home look that much better. Then you can relax and watch that other March Madness final game on April 4.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Good reason to buy a new home? Positively!
THERE are a variety of reasons for someone to buy a new home. It might have to do with size of family. It could be proximity to work or school. It might be impacted by social needs and wants.
Items such as garage capacity, size of yard for play and pets and how the sun hits the backyard in the afternoon can all influence the decision to purchase a new home. Every single factor is important to the consumer and we are all influenced to a different degree by each.
For the sake of this article, we are only going to look at basic financial considerations. Are the economic conditions in Manitoba today positive for the consideration of buying a new home?
Assuming you are not blessed with an excess of cash, one of your first considerations is the mortgage. There has been a lot of talk about mortgage rates, qualifying for a mortgage and changes to the process. However, all are still very positive. Long term fixed rates are still at a terrific level, under four per cent.
Just ask someone who bought a house in the early 1980s about rates over 20 per cent. Any talk of increases to the current mortgage rates are along the lines of a quarter of a point here or there. The days of runaway inflation are long past and well under control nationally and locally.
Manitoba does not have the reputation as a boom or bust economy. This allows the sage consumer to do some long range planning without surprises.
Our unemployment rate is consistently the lowest in Canada.
So, back to the question: are the economic conditions in Manitoba today positive for buying a new home? Absolutely. The Manitoba consumer is a savvy consumer and will look at numerous additional considerations before entering into the new home market.
However, given mortgage rates and conditions/qualifications, the Manitoba economy and all economic projections for the near future, this is a very good time to consider buying a new home.
Furthermore, although any time is a good time to do your research, the best time to look at what there is to offer is during the Spring Parade of Homes, happening March 5-27.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
RenoMark logo sign of professionalism
HOME renovations continue to be a popular topic in Winnipeg and across the country. The fact that our city has the third oldest housing stock in Canada generally translates into the need for renovations.
As a matter of fact, more Manitobans have indicated their intent to renovate their homes in the coming year than in any other province. Perhaps it's in our nature to see something absolutely fabulous at the Kitchen Bath and Renovation Show, Home Expressions or the Parade of Homes and want to introduce that concept into our current home.
Some people look at renovating as an exciting new adventure; others see it as a headache. If you take the necessary steps to avoid certain pitfalls, it can be both exciting and rewarding.
First, remember that the cheapest deal is not necessarily the best deal.
This is a close-knit community, so everyone knows someone who knows someone who is handy with a hammer.
That someone may also be willing to do the job on the side for cash, no questions asked. Just think of the money that you can save by not paying PST and GST. You'll save even more by not taking out permits, fiddling with cumbersome contracts or worrying about insurance.
Bad ideas all around.
Why would you trust your home to someone who does this type of work on the side? The RenoMark logo is your sign of professionalism and confidence.
A RenoMark renovator is your insurance and assurance of quality.
The RenoMark program is nationally recognized by the Canadian Home Builders' Association and is currently operating in six provinces. Manitoba was actually the first province to adopt RenoMark.
A RenoMark renovator provides a detailed written contract for all jobs and takes out all applicable licences and permits and carries $2 million in liability insurance. Why is this important? If you don't take out the necessary permits, the job never legally happened. In the event of an accident, fire, flood or some other problem, you may find that you are not insured for any damage to or resultant from this work.
A RenoMark work site is a safe and professional work site. Anything less is not worth the risk. Consult the RenoMark and MHBA web sites for more information.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Housing starts in Manitoba shoot upward
Housing permit numbers in Winnipeg were up significantly in December 2010 over the same month in 2009. That marks 11 of the 12 months where last year was ahead of the previous year.
Given the 2009 economy, that is hardly surprising. However, it is the magnitude of the increase that catches one's attention. For the calendar year 2010, the Winnipeg metropolitan area experienced an increase of 27.6 per cent in single-family detached starts. Combined with multi-family units, there was an overall increase of 59.6 per cent.
The multi-family sector, which was almost invisible in 2009, exploded in 2010. In fact, there was talk of various projects that were originally scheduled for this coming year that started early due to demand.
If the first three weeks of 2011 are any indication, it looks like this year could also be a banner year for new housing throughout the province. It remains to be seen if the multi-family sector can keep that torrid pace, but the single-family detached appears well on its way. This is good news for economic activity, training and jobs.
All projections point to another strong year for the residential construction industry, whether the numbers are superior to this past year or not.
In fact, all Western Canada experienced a very positive 2010 as it pertained to housing starts. Saskatchewan grew commensurate with Manitoba and British Columbia and Alberta also enjoyed significant growth.
However, it must be remembered that B.C. and Alberta fell a lot harder than Manitoba in 2009, so their comeback, although positive, still leaves them well behind the pace they set in previous years.
In addition to new home construction, the renovation market continues to be robust throughout Manitoba. We're still known as the renovation capital of Canada and more Manitobans renovate each year than those in any other province.
Although there have been calls for a slowdown in renovation activity on a national level, there is no sign of it happening here. If the lineup at the Ask a Renovator booth at the recent Kitchen Bath and Renovation Show was any indication, there is going to be lots of work to do in 2011.
Mike Moore is president of the Manitoba Home Builders' Association.
