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Canadian Households Spent $11,000+ on Renovations in 2006

Average expenditure in 10 major markets grows says CMHC Survey  

The real estate market is booming these days, and the latest survey by the Canada Mortgage and Housing Corporation (CMHC) proves that renovations are an equally hot commodity for Canadian consumers. And there's a direct relationship between the two says CMHC. One of the primary reasons that Canadian homeowners renovated their property last year was to either add value or to get the home ready to sell. The real estate market is driving the home renovation market, as Canadians try to capture top dollar for their listings.

This renovation trend has been identified through an extensive survey of Canadian homeowners in major markets across Canada . Approximately 1.5 million households in 10 major centres surveyed indicated they completed renovations last year, costing an average of more than $11,000, according to the recent Renovation and Home Purchase Survey released by Canada Mortgage and Housing Corporation (CMHC). This trend to increased home renovations is also a driving factor for Canada 's overall economy. According to CMHC's Chief Economist, more than $17.3 billion was spent on renovations last year across the 10 major centres surveyed. As well, 46% of homeowners in the 10 centres surveyed said they intend to spend $1,000 or more on renovations this year. 

Based on the results of the CMHC survey, it appears that one of the major challenges of a renovation project is planning – and staying within – a realistic budget. Less than half (47%) of households reported that the cost of renovations was in line with what they had budgeted. More than a third of households went over their planned budget for the renovation. Interestingly, of the households that undertook a renovation project, 24% were do-it-yourselfers who hired a contractor for a portion of the work. The majority of households conducting renovations contracted out the work to professionals (40% of respondents) as opposed to those doing the work themselves (34%).

Regardless of who ended up doing the work, the reasons behind it were often the same. The main reason given by households for renovating in 2006 was to update, add value or to prepare to sell the residence (61%). Less than a third (30%) of survey respondents stated that the main reason for renovating was that their home needed repairs. The top three renovations completed last year were:

  • remodelling of rooms (34 per cent),
  • painting or wallpapering (32 per cent)
  • hard surface flooring and wall-to-wall carpeting (32 per cent).

If you'd like some professional advice on what home renovations are likely to give you the best return for your investment, contact your local Coldwell Banker real estate professional. They know what improvements buyers are looking for, and what will help sell your home for a great price and in a short amount of time.

In addition, if you have any general questions about buying or selling real estate in Ontario, please contact me as I'm more than willing to help. http://www.epsteinrealestate.com

Published Thursday, July 26, 2007 9:23 AM by Jordan Epstein

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