More Canadians Turning to Renovations Renovation spending has been the fastest growing segment of the market
with renovation outlays increasing at an annual rate of 6% from 2000-2012
according to a new Scotiabank report.
Andrienne Warren, an economist with Bank of Nova Scotia, says the boost in the renovation market has been “fuelled by rising home prices, tight resale market conditions, attractive financing costs and government tax credits
Renovation spending has been the fastest growing segment of the market with renovation outlays increasing at an annual rate of 6% from 2000-2012. This increase was double the 3% of new construction.
These renovations eventually boost housing prices because they increase the quality of the housing, said the report. That housing is eventually sold at a higher price.
She said the housing market may finally be turning. “Residential investment stalled last year, as affordability tempered home sales, and builders scaled back the number of new developments,”, adding Scotiabank expects a more “subdued trajectory” for housing over the next several years which will have a modest drag on the economy.
Ms. Warren estimates the housing sector contributed $128-billion to the economy last year
when including residential investment, new construction, renovations and owner transfer costs such real estate commissions, legal and appraisal fees. It is an important part of the economy
with residential investment expanding at an annual rate of 4.2% from 2000-2012
, almost double overall gross domestic product during the period. The sector contributed 0.3% annual to real GDP over the period.
Many industries contribute to the real estate sector, including manufacturing, retail and wholesale trade, finance, insurance and real estate professional and technical services. http://bit.ly/1pdgYKg #realestate #canada #economy #option1 #opt1mtgfin