New Homes
New Homes
Are young better or worse off than parents?
I'm not sure why, but there's a pervading school of thought that millennials are finding life much tougher than their parents, are having trouble securing a job and are holed up their parent's basement until they are financially stable.
According to a recent BMO report, this is not true. As a matter of fact, they may be better off than their parents.
For the sake of this discussion, the millennials are those in the 25-to-34 age bracket. The comparative years for their parents were in the 1980s.
One argument is that jobs are easier to find now than in the 80s. Remember, there was a recession at the start of that decade and unemployment carried on for a few years afterwards. According to Statistics Canada data, the unemployment rate and duration of unemployment were both higher in the mid-80s than today.
Similarly, better-educated young people today have a median income that is two-per-cent higher (all figures adjusted for inflation) than their parents. To be fair, median income did fall in the early 80s from the more prosperous late 1970's. It's also important to note that median income fell again in the mid-1990s.
In that vein, young families in this age group are considerably wealthier than their peers 30 years ago when it comes to income. However, on the down side, more young families owe more today than in their parent's time. A higher proportion have debts (2.4 per cent) and mortgages (6.4 per cent). It's also probably fair to say that there is more student debt today as well.
Largely due to external, government-imposed charges, the cost of housing is considerably higher relative to the median wage rate now than it was 30 years ago. The Toronto and Vancouver markets badly skew national figures, driving national averages skyward. These numbers are not broken down by BMO regionally, but it's fair to speculate that the costs and averages vary from province to province.
On the other hand, mortgage rates are considerably friendlier now than in the early 1980s. Young people have been able to lock in for five years at rates unheard of by their parents, who are able to tell horror-stories of rates that were above 20 per cent in 1981.
Our 25-to-34 generation appears to be well on their way towards taking over and doing just fine financially. There will be bumps and hurdles, but their time is coming.
Mike Moore is the president of the Manitoba Home Builders' Association.
New Homes
First-time buyers feeling the financial pinch
The housing market in Winnipeg and throughout Manitoba is healthy, but it could be better.
New-home construction in the past few years has been happening at record rates, but will definitely cool down a bit this year -- it almost has to in order to catch up with demand.
Similarly, all reports from the Manitoba and Winnipeg realtors' associations indicate that demand is still far exceeding supply and we remain a seller's market. Winnipeg has less than half of the listings per capita that both Saskatoon and Calgary enjoy. Demand is especially high in certain neighbourhoods where you seemingly have only to mention that you're thinking of selling your house to have lineups forming to place an offer on it.
Winnipeggers are famous for clinging to familiar neighbourhoods, generally where they were born and raised. Perhaps it's a resistance to change; perhaps it's just a certain level of comfort.
For the person with the means to live where they want, it's the price of choice. However, numerous other factors may negatively impact the most vulnerable homebuyer; the first-time buyer.
Generally, but not always, the first-time buyer is younger and just getting started in the working world. Single or married, they may have been renting for a few years or just living with their parents while they saved enough money for a down-payment. This is where the problems start.
Canada Mortgage and Housing guidelines require that a homebuyer must have five per cent of the total selling price for a down-payment in order to qualify for a mortgage. Although this may be true on paper, there are numerous reported examples of first-time homebuyers who cannot get mortgage loans even when they have the necessary down-payment and can demonstrating that they are able to make their monthly payments. In many cases, their financial institutions want more than five per cent.
Other initial costs can also impede the first-time home buyer. Manitoba's Land Transfer Tax has long been a thorn in the side of the Winnipeg realtors. Originally designed to be revenue-neutral, covering just the administrative costs of changing a property title, this tax now averages more than $3,000 per home sale.
We need to create incentives to encourage Manitobans to stay in Manitoba, rather than throw impediments in their way and perhaps lose them to another city or province. We need to combine our resources to assist the first-time homebuyer, not discourage them.
Mike Moore is the president of the Manitoba Home Builders' Association.
New Homes
MHBA renovation seminar a resounding success
Last week at the Norwood Hotel, the Manitoba Home Builders' Association hosted a free renovation seminar that proved to be extremely popular with the public.
More than 140 people crowded into the room to hear important advice on how to ensure a happy renovation project.
Ivan Plett, from Rempel Builders, kicked things off with a presentation about starting the renovation process, stressing how critical it is to determine the parameters of a renovation project before getting seriously started. Knowing what you want to do and having a realistic budget are critical to success, he said.
Plett also spoke about what to look for in a renovator to ensure a positive working relationship. Always get a written contract and ensure that your renovator takes out all appropriate permits while using licensed trades, he said.
Ivan was joined by Jim Siddall from Back to Basics Carpentry and Ralph Oswald from Oswald Construction.
Shea Newton from Manitoba Hydro outlined a variety of programs and opportunities for homeowners to save on energy costs by doing renovations while qualifying for various Power Smart savings, rebates and loans.
Kirsten Reimer from Steinbach Credit Union shared some terrific information on how to finance renovation projects. Renovation mortgages and personal loans can allow consumers to maximize their upgrades, she said.
Martin Grady from the City of Winnipeg explained when a permit is and isn't required, the advantages of permits and how to get them, the insurance of inspections, zoning issues and the easy-to-use City of Winnipeg Planning Property and Development website.
I concluded the formal part of the evening by explaining the dangers of the underground economy and how, without a written contract, a consumer assumes liability risks with no recourse if the job isn't done right.
I also outlined the merits of the RenoMark program, under which MHBA renovators provide detailed contracts and a two-year warranty on labour, carry at least $2 million in liability insurance and all applicable licenses, provide full Workers Compensation coverage, have registered GST numbers and maintain a professional level of knowledge through continuing education.
The evening concluded with a variety of questions to the panel of presenters and to expert representatives from All Weather Windows, Reliance Superior and Quik Therm.
The renovation is an annual spring event and is part of the free consumer advice services provided by the Manitoba Home Builders' Association.
Mike Moore is the president of the Manitoba Home Builders' Association.
New Homes
Builders honoured at Spring Parade gala
Last night, before a sold-out crowd at The Met, the awards ceremony for the recent Spring Parade of Homes took place.
It was an evening of excitement as 36 different builders took part in the Parade with 122 homes in 36 unique neighbourhoods. The timing was perfect as this past week has seen the first signs of spring weather this year.
The individual category winners are pictured in today's Free Press and, for the first time ever, there are individual homes that were multiple category winners. That's due to a new wrinkle to the judging introduced especially for the 2014 Parade.
In the past, five judges visited up to five homes in a specific category based on price-point and judged each home on 19 different criteria. This year, the number of judges and evaluations were unlimited as every person visiting the show homes was able to rate each home on a five-point scale in four different categories: Functionality, Traffic Flow and Room Proportion; Overall Value and Quality of Home; Interior Visual Appeal; and Special Design Features: Windows, Lighting, Trim, Built-Ins, Fireplaces.
The overall results were tabulated and the winners are listed today and can be found on the Manitoba Home Builders Association web site (www.homebuilders.mb.ca).
It was interesting to note that the number of ratings per home fluctuated throughout the City of Winnipeg and beyond. The distribution and frequency was widespread, thereby substantiating the premise that the Parade truly has something of interest for everyone and everywhere.
For those who did not get out to the various show homes during the Parade in March, fear not -- most of the 122 new homes are still available for viewing.
You can find the Spring Parade of Homes magazine on the Manitoba Home Builders Association website or at www.homes.winnipegfreepress.com
Mike Moore is the president of the Manitoba Home Builders' Association.
