Manitoba Canada’s leader in home renovations

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This article was published 29/05/2012 (4876 days ago), so information in it may no longer be current.

Home-renovation fever is showing no signs of abating in Manitoba, even though homeowners are scaling back their reno plans in other parts of the country, a new survey shows.

The survey for the Bank of Montreal found 67 per cent of Manitoba/Saskatchewan homeowners plan to renovate their homes this year. That’s virtually unchanged from a year earlier, when it was 68 per cent.

But it’s a much different story nationally and in most other regions of the country, where the number of homeowners planning to renovate this year is down substantially. For Canada, it’s 51 per cent versus 62 per cent in 2011.

The chairman of the 40-member Manitoba Home Builders’ Association-Renomark Renovators Council said he’s not surprised by the Manitoba results.

“None of our members are seeing any slowdown at all,” said Brad Sveinson, co-owner of Character Homes Ltd. “Some of us are already taking bookings for next year.”

“Manitoba has always been the Canadian leader in home renovations,” added MHBA president Mike Moore. “We may not spend as much as they do in some other regions, but we do more renovating.”

A case in point are Winnipeggers Andrew and Stephanie Stibbard. They’re in the midst of doubling the size of their 1,330-square-foot bungalow on Churchill Drive by adding a second storey and a four-season sunroom.

“We’ve got three kids and we were running out of space,” Andrew Stibbard said Monday. “So we had a choice to make: move out of our community or renovate and stay in our community. And we love our community… so we decided it was a no-brainer (to renovate).”

He said the fact they plan to remain in their home for the long term was another determining factor.

“I want to die in that house, although I hope that doesn’t happen any time soon,” he said.

Sveinson said most of the homeowners he deals with have owned their houses for a few years and have built up equity. If they love their neighbourhood, they’re upgrading and/or expanding their home. And if they have an eye on another neighbourhood, they’re selling their home, buying one in their dream neighbourhood and renovating that.

Ralph Fyfe, a real estate agent with Century 21 Bachman & Associates and immediate past-president of Winnipeg Realtors, said he’s also seeing a lot of home sellers renovating their homes before putting them on the market.

“They’re trying to get that top dollar out of their house. If that means spending $10,000 or $15,000 to get an extra $20,000 or $25,000 for their home, that’s what they’re doing.”

Fyfe said that’s sound reasoning because most buyers are looking for homes that require little or no work.

He and Sveinson said with escalating house prices, first-time buyers aren’t major players in the home-renovation market these days. “They’re typically trying to scrape up enough money just to get the keys (to the house),” Fyfe said.

Laura Parsons, BMO’s manager of mortgage sales for Manitoba, said the fact Winnipeg has a surplus of smaller, older homes is another reason why renovation spending remains strong in Manitoba. Historically low interest rates also make renovation loans more affordable.

Parsons said the kinds of renovation projects BMO is seeing range from re-shingling the roof to adding a second floor or a big addition.

“Kitchen renovations are the big one,” she said, adding bathroom renovations, basement redevelopments, landscaping/deck projects, and new wiring are also popular.

The survey of 1,000 Canadian homeowners was conducted by Leger Marketing between March 19-22. It has a claimed margin or error of plus or minus three percentage points 19 times out of 20.

murray.mcneill@freepress.mb.ca

Getting the most for a fixer-upper

HGTV.ca and BMO offer the following advice on which renovation projects provide the best return on investment:

Painting: Applying a tasteful, well-done coat of paint to the interior or exterior of a home is a simple way to realize gains on a renovation investment. Return: As much as 300 per cent.

Kitchen remodelling: A kitchen renovation can be one of the most costly home improvement projects. Careful planning, budgeting and shopping can help minimize expenses. Consider whether the project is in line with the style and quality of the house and neighbourhood. Return: 68-120 per cent.

Bathroom addition/remodelling: A bathroom addition should be a top priority for a home with only one bathroom. Return: 80-130 per cent; 65-120 per cent respectively.

Window/door replacement: Replacing windows or doors can refresh the esthetic and also lower energy costs. Stick to standard styles; odd shapes and highly customized arrangements do little for resale value. Return: 50-90 per cent.

Deck addition/improvement/expansion: Decks are one of the few exterior improvements with any significant return, apart from painting. Return: 65-90 per cent.

 

— Source: HGTV.ca