New Homes
New Homes
A closer look at Winnipeg's housing market
Free Press reporter Bartley Kives wrote last weekend about city planning and a recent move to more densified housing, even in the suburbs.
Of particular note were the housing starts in Winnipeg for the first four months of 2013. There have been 766 multi-family starts as opposed to 680 single-family detached starts.
Add to this mix discussion of tower structures along the Assiniboine River and in the heart of downtown and one could think Winnipeg is going all metro Toronto where the great majority of residential construction is in the multi-family department.
Before we go too far along in this premise, we should clarify something.
First, the 680 single-family starts represent a more than 20 per cent increase from last year, one of the best years in history. So, it is very clear the growth in multi-family dwellings is not coming at the expense of single-family housing.
Next, this trend in balancing housing types is something relatively recent. However, it does look like it will continue.
Multi-family starts in Winnipeg averaged about 400 units annually throughout the 1990s. It wasn't until 2007 that we cracked the 1,000 mark and, with the exception of 2009, the popularity has continued to grow: There were more than 1,300 units in 2010 and 2011.
Last year saw almost 2,000 units with projections for this year and next year to surpass that mark.
Single-family detached starts averaged around 1,100 throughout the 1990s and increased to 1,700 for the next decade. Starting in 2010 and forecasting through 2014, the number of single family starts in Winnipeg should consistently be in excess of 2,000, an almost 50/50 split.
So, even though multi-family housing is growing at a significant rate, it is not at the expense of the single-family sector. What is the proper mix? That is for the consumer to decide. People will buy what they want to buy.
Winnipeg is not a 'build it and they will come' city. We build based on demand, not outrageous speculation. Consumer demand will help direct developers and builders provide a product the consumer wants.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
U.S. housing recovery impacts Canadian market
Many people think the recent U.S. economic and housing crisis was a stand-alone event that had little or no impact on the Canadian market. That's simply not true. It played a big part then, continues to do so now and will likely do so in the future.
When spending, manufacturing and hiring slowed to a crawl south of the border, so did the rate of inflation. One of the primary differences between our two countries was that Canada continued to build and grow through the recession and recovered fairly quickly, whereas the U.S. did not.
However, inflation remained similarly low in both nations. Canada's inflation rate is expected to hover around two per cent for a couple more years. Price-sensitive buyers for all consumer goods are happy with the stability but concerned about the lack of immediate return their investments.
The collapse of the U.S. housing market from 2006 to 2011 was unparalleled. It's just now beginning to rebound, and we will feel the effects of this recovery in Canada. It's just been in the past year that new-home starts began to surpass the rate of completion.
When nothing was happening south of the border, suppliers looked to Canada to purchase building materials, and the prices were good. Now that the U.S. housing recovery is underway, suppliers will not be fooled into extending unlimited credit again and will increase prices rather than risk long-term commitments.
There are many examples of commodities being affected by this shift.
Even though supply may have increased, prices have also increased. When building-material demand increases in the U.S., there's a concern about the availability of supply in Canada from the larger American suppliers. This has a tremendous impact on the renovation sector, a huge segment of the Manitoba economy.
The most comforting observation is new-home prices in Canada have not moved out of line with disposable income. Although the resale market has had some dramatic ups and downs across the country, the new-home market has trended steadily upwards. Only Vancouver and Victoria have gone against this trend, with declining prices.
It will be fascinating to watch the recovery and growth of the U.S. market over the next decade, all the while being aware of the impact it is sure to have on us.
Mike Moore is president of the Manitoba Home Builders' Association.
New Homes
Fascinating report on first-time home buyers
For many generations, there was an unwritten rule or pattern to first-home ownership.
You rented an apartment for a few years, all the while saving enough money to put a deposit down on a house. Then, when that magic percentage was realized and you qualified for CMHC financing, you found something that was quite basic and simple, a starter home that allowed you to start a family, start renovating and start saving for the next phase of home ownership.
After you built up adequate equity and the value increased commensurately, the options were yours. If you wanted to stay in the same neighbourhood as your current house or the house in which you were raised (a very Winnipeg pattern), you stepped up in the resale market, detailed to your agent exactly what you were looking for and waited for that dream home to become available.
If you wanted to create your own dream home and create your own legacy in your own new neighbourhood, you built a new home according to your own tastes and specifications, incorporating everything you wanted.
A month ago, BMO published a First Time Home Buyer's Report in which it looked at national and regional trends for those buying their first home. The results were fascinating.
On average, first-time buyers expect to be mortgage-free in 20 years with 20 per cent estimating it will take between 10 and 19 years. Over twice as many first-time buyers will lock into a fixed-rate mortgage as opposed to a variable rate. This is true even if the same people expect interest rates to stay the same for a five-year period.
Two-thirds of first-time buyers say the latest change in government-insured mortgages, from 30 years to 25 years, has not affected their buying timeline, whereas only 19 per cent have said they will have to wait a little longer. Over 60 per cent have made cutbacks to their lifestyle to save for their first home while only one in four expect parents or other family members to help them pay for their first home.
Finally, it is interesting to note that 59 per cent have had to hold off buying because of increasing house prices while the exact same percentage wish they had bought their first home five years ago, presumably because of increased home values.
Mike Moore is president of the Mantoba Home Builders' Association.
New Homes
Reno seminar aims to fulfill your dreams
Winter can't last forever, can it? Eventually, the snow has to melt, the ground has to thaw and the flowers and grass have to grow.
We've been locked inside our houses for far too long this year and, when we finally do get out, we're going out with a vengeance. There is so much to do in what seems like so little time. It's difficult to decide what to do first and how to do it.
We love to renovate. Winnipeggers indicate that they plan to do a renovation this year more than any other city in Canada. Manitobans spend over $2 billion per year on renovations.
Whether it's an exterior renovation demanding warmer weather and no snow or an interior renovation for which you would like to open the windows and let some air in, we're waiting for warmer weather. We don't need to wait any longer, because all of the information that we have been looking for is available this coming Wednesday.
The Manitoba Home Builders' Association is presenting a free renovation seminar on Wednesday, May 1 at 6:30 p.m. at the Norwood Hotel. Expert representatives of the RenoMark Renovators Council will be on hand to tell you all you need to know in order to plan that next renovation project.
All aspects of a renovation will be discussed. You'll learn about planning the project, creating a list of what needs to be done and establishing a realistic budget. You will learn how to select the best renovator for your project and what to demand in terms of professionalism.
Manitoba Hydro will share how you can save money and access rebates through utilization of energy-efficient strategies.
City of Winnipeg personnel will tell you what you need to know about when a zoning variance is needed and when permits are and aren't required. They will also share information on how to access city services in order to make the project go smoother.
Representatives from Steinbach Credit Union also will present innovative ideas on how to best finance and pay for your renovation within your budget.
There will be a number of professional RenoMark renovators on hand to answer your questions, so bring your drawings, concepts and dreams to the free Renovation Seminar. Register in advance at any Steinbach Credit Union.
Mike Moore is president of the Manitoba Home Builders, Association.
New Homes
Living the dream
Artista Homes' Frank Cotroneo said the goal is the same for every home the 10-year-old custom builder builds.
"We always try to design homes that are innovative and unique," he said. "Our design team is always bursting with ideas. If they're doable, we'll do our best to bring those ideas to life in a fashionable, functional way."
Case in point is 62 Sage Creek Crescent, a.k.a., the recent St. Boniface Mega Millions Lottery 2013 showhome, a two-storey design with walk-out basement and over 3,700 sq. ft. of total living space.
"Because this was a lottery home, we went to extra lengths to create a liveable home with unique living spaces and a modern feel," explained Cotroneo. "The design is outside the box, yet functional. Feedback on the home has been phenomenal."
Little wonder; the moment you step into the great room area -- the family room, to be precise -- the imaginative design and use of materials notifies you that this is no run-of-the-mill residence.
"One of the first things we did was put a vaulted ceiling in the family room. It's not only 14 feet high, but it (along with the rear wall) is lined with whitewashed pine. It would have been easy just to put in drywall, but we wanted to do something different," he said.
The next obvious difference is the use of concrete throughout the great room. The family room's focal point (aside from the wetland view displayed through a huge three-piece window with transoms above), a ribbon-style fireplace, is framed by a concrete surround with weathered, bolt-on iron accents. Concrete beams and pillars also define both the dining room and kitchen areas.
"You know, the concrete beams and pillars were a lot of work to put in, but were worth the effort. They not only provide definition, but a different look. There's a lot of space for everyone to enjoy, and there's also good separation between spaces -- they're defined by the concrete beams and pillars, and actual space between the areas," Cotroneo said.
Placed between the family room and kitchen, the dining area is a highly functional space due its practical, yet fashionable design.
"The actual eating area is huge, and is next to a bar with its own island on one side that's great for entertaining. On the other side is a sunroom with five windows and four skylights above; it's a great spot to sip your morning coffee looking out over the wetlands, or to enjoy a beverage with company," he said. "We lined the skylights with whitewashed pine to give the area an extra bit of warmth."
Meanwhile, the adjacent kitchen is a modern space with its linear Euro-style pull up cabinets (with glass centres), pantries on either side of the oven and microwave, 10-foot (black) granite island and wealth of counter and cabinet space (cabinets are charcoal maple).
Cotroneo added that his design team managed to sneak a traditional feature in for good measure.
"They decided it would be kind of neat to put in double sink beneath a big, low-silled window on the back wall," he said. "It works really well, as it allows you to enjoy the amazing view while you wash the dishes. There's also a (14-foot by 14-foot) deck off the kitchen that overlooks the lake, and a wing behind the kitchen that contains a laundry room, powder room and entrance to the garage."
The home's upper level features a split-level design. The first level -- set eight steps up from a landing with two adjacent huge windows that flood the stairwell with light -- features a huge flex room. Three steps up from that level awaits two bedrooms, a four-piece main bath and master suite that is the home's piece de resistance.
"We're really pleased with how the flex room turned out -- with its nine windows, vaulted ceiling and door that leads to a balcony that has a tyndalstone front for privacy, it's a space that could be used as an office or workout room," he said.
Artista's design team went to town with the master suite, which is chock-a-bloc with Wow Factor, starting with a wall of windows that afford an elevated view of the wetlands below. To the right, a concrete wall with faux finish frames the bed, while a heated grey (24-inch by 48 inch) ceramic tile floor -- it also runs through the entire great room -- adds contrast and welcome warmth underfoot.
There's plenty more Wow Factor in the ensuite, said Cotroneo.
"It's open to the master suite, with a three-sided gas fireplace to subtly divide the two spaces," he said. "It's luxuriously appointed with a free-standing soaker tub, seven foot custom tile shower with two rain shower heads, body sprays and a bench. There's also dual floating vanities (charcoal maple/black granite), each with a TV built into the mirror, too."
The home's lower level is just as bright as its main level with a walk-out design that placed three windows in the media area (which contains a gas fireplace, whitewashed pine TV niche and wet bar with island) and five windows and door to a covered patio off the games area. A big fourth bedroom, three-piece bath and storage room finish off a basement that feels like an extension of the main level due to light and amazing water view.
"I think it's a home that's unique, modern and, above all, liveable," said Cotroneo. "It's a bit different with all its different design features, but it's functional, and the view is amazing."
lewys@mts.net
DETAILS
BUILDER: Artista Homes
ADDRESS: 62 Silver Sage Crescent, Sage Creek
STYLE: Two-storey
SIZE: 3,700-plus sq. ft. of living space including walk-out basement
BEDROOMS: 4
BATHROOMS: 3.5
LOT SIZE: 58' x 170'
LOT COST: $204,000 (including GST)
PRICE: $989,900 (Includes land & net GST)
Contact: Jennifer Gulay, Royal LePage Alliance @ (204) 794-9464