Renovation market also staying strong
May 20, 2006. 01:00 AM
More than 380,000 households in major Canadian cities indicated they were ready to buy a home this year, according to a survey released this week by the Canada Mortgage and Housing Corp.
The results of the CMHC's Consumer Intentions to Buy or Renovate a Home survey represents an average of 8 per cent of households in Halifax, Montreal, Toronto, Calgary, and Vancouver.
While 8 per cent declared that they have a high chance of buying a home and could be considered as 'ready to buy' within the next 12 months, 5 per cent indicated that they have a 50-50 chance of buying. The survey is conducted using a sample of about 4,000 households in each centre surveyed.
'Intentions to buy are up from 2005 when 5 per cent of households were ready to buy a home. This year, strong intentions to buy are consistent with continued high levels of housing starts and sales of existing homes.
Favourable economic conditions, such as low mortgage rates and a healthy labour market are contributing factors to home-buying intentions,' said Bob Dugan, chief economist at the CMHC.
'Home-buying intentions are strongest in Calgary and Halifax, where 10 per cent of households reported that they are ready to buy a home. Purchase intentions are also strong in Vancouver and Toronto where 8 per cent of households are ready to buy, while the share is slightly lower in Montreal (7 per cent).
"Home renovations will remain strong this year, with 13 per cent of surveyed homeowners reporting they were ready to undertake renovations this year, costing $1,000 or more," said Dugan.
"The share of serious renovators is down compared to 2005 when 17 per cent of homeowners were ready to renovate. While the share of homeowners who intend to renovate decreased in 2006, the total dollar amount that will be spent on renovations is expected to increase."
Meanwhile, increases in Canadian house prices over the past five years — dramatic in Alberta and British Columbia and strong in the rest of the country — are the result of a robust economy that also provided a dramatic rise in key economic indicators and popular lifestyle and consumer items, according to a report released this week by Century 21 Canada.
Price increases over five years for typical homes across the country in a selection of markets surveyed by Century 21 range from as high as 129 per cent in Vernon, B.C. to as low as 12 per cent in Thunder Bay.
In Vernon, a 1,200-square-foot bungalow with three bedrooms and two bathrooms on a 55-foot by 100-foot lot increased in value to $355,000 this year (2006) from $155,000 in 2001.
The hottest housing markets in Ontario include Peterborough and Kitchener-Waterloo, Century 21 reported.
In Peterbourgh, the price of a typical home — 1,050-square-foot bungalow with three bedrooms and 1 1/2 baths — increased to $202,000 in 2006 from $131,000 in 2001, an increase of 54 per cent.
In Kitchener-Waterloo, a typical home — 1,200 square foot two-storey home with three bedrooms and two bathrooms — rose to $245,500 in 2006 from $163,000 in 2001, an increase of 51 per cent.