Slow Housing Market equals more Renos

(September 09, 2012 )

Renovations always pick up when sales of new homes fall off.  Kitchens, bathrooms and basement suites continue to be the most popular renovations, but people are also renovating their entire homes.

Canada Mortgage and Housing Corp’s third-quarter Housing Market Outlook, released in August, said renovation spending in 2011 was $61.7 billion in Canada. CHMC says that amount will moderate in 2012, growing to $63.3 billion, but is expected to strengthen in 2013 to $65.6 billion.

“Some clients have moved in and want to renovate. The others are folks who have lived somewhere for a number of years and want to stay in the same neighbourhood. They’re renovating for their own use,” said Peter Simpson, president and CEO of the Greater Vancouver Home Builders Association. “They’re not nervous about spending the money either.”

The housing has been slower with year-to-date resales down 18% in Vancouver compared to last year.  New mortgage rules introduced by the federal government in July shortened the maximum amortization to 25 years from 30, which is also expected to dampen the market.

See full article at:  Vancouver Sun