On average, households across ten major centres spent more than $11,000 on renovations in 2006

    OTTAWA, June 14 /CNW Telbec/ - Approximately 1.5 million households in
10 major Canadian centres surveyed(1) indicated they completed renovations
last year, costing an average of more than $11,000, according to the new
Renovation and Home Purchase Survey(2) released today by Canada Mortgage and
Housing Corporation (CMHC).
    "More than $17.3 billion was spent on renovations last year across the
10 major centres surveyed," said Bob Dugan, Chief Economist at CMHC. "As well,
46 per cent of homeowners in these 10 centres surveyed indicated that they
intend to spend $1,000 or more on renovations this year."
    The new Renovation and Home Purchase Survey is part of CMHC's suite of
enhanced surveys and analytical reports. The Renovation and Home Purchase
Survey reports on actual renovation expenditures made in the previous year, as
well as intentions to buy or renovate in 2007 in 10 major centres across
Canada.(3) The new survey enables all market participants to benefit from
timely information on renovation market trends.
    Close to half (47 per cent) 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. Twenty-four per
cent of households that undertook a renovation project were do-it-yourselfers
who hired a contractor for a portion of the work. Slightly more households
contracted out the renovation work (40 per cent of respondents) as opposed to
doing the work themselves (34 per cent).
    The main reason given by households for renovating in 2006 was to update,
add value or to prepare to sell the residence (61 per cent). Thirty per cent
of 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),
and hard surface flooring and wall-to-wall carpeting (32 per cent).
    The share of households who spent $1,000 or more on renovations in 2006
was the largest in St. John's at 37 per cent, followed by Halifax at 36 per
cent, while a smaller proportion of households in Vancouver (30 per cent)
undertook renovations last year.
    As for renovation intentions across the 10 major centres in 2007, they
are strongest in Edmonton and Winnipeg where 51 and 50 per cent of consumers,
respectively, indicated they planned to undertake renovations costing $1,000
or more this year. The share of potential renovators is lowest in Toronto and
Vancouver with 43 per cent of households in each centre intending to renovate.
    On the home purchasing front, eight per cent of households across the
10 major centres surveyed intend to purchase a home in 2007 that will be used
as a primary residence. About half of the households that stated they intend
to purchase a home in 2007 are first-time buyers, compared to 40 per cent in
2006. The majority of first-time buyers are between the ages of 25 and 34,
with a household income between $80,000 to about $100,000.
    Home buying intentions are strongest in Calgary where 14 per cent of
households reported that they are considering buying a home this year.
Purchase intentions are also strong in Edmonton where 11 per cent of
households plan to buy, while the share is lowest in Montréal and Québec
(6 per cent).

    As Canada's national housing agency, Canada Mortgage and Housing
Corporation (CMHC) draws on over 60 years of experience to help Canadians
access a variety of quality, environmentally sustainable, and affordable
homes - homes that will continue to create vibrant and healthy communities and
cities across the country.
    For more information, visit www.cmhc.ca or call 1 800 668-2642.

    (1) Ten major centres are: St. John's, Halifax, Québec, Montréal, Ottawa,
        Toronto, Winnipeg, Calgary, Edmonton, and Vancouver

    (2) The Renovation and Home Purchase survey is an updated and expanded
        version of the consumer Intentions to Buy or Renovate a Home Survey.
        The new survey is conducted in selected Canadian centres. It provides
        information on the most popular renovation projects undertaken and
        homes purchased in the prior year, as well as, on household
        intentions to buy or renovate in the upcoming year. Respondents are
        also asked about motivations or barriers; the type, size and price
        range of homes; insights about their planned renovations as well as
        important demographics, income, tenure, and location information.

    (3) All 10 centres were asked whether they intend to spend more than
        $1,000 on renovations in 2007 and whether they intend to buy a home
        in 2007. More detailed questions on intentions to buy or renovate
        were asked in Halifax, Montréal, Toronto, Calgary, and Vancouver.

    To obtain the free electronic version of the Major Market Highlights
report or the detailed data table reports for the individual centres or all
centres combined, visit the CMHC website at:

    English:  https://www03.cmhc-schl.gc.ca/b2c/b2c/init.do?language=en

    French:   https://www03.cmhc-schl.gc.ca/b2c/b2c/init.do?language=fr

                                   (Ce document existe également en français)


                 Renovation and home buying activity   Intentions to buy and
                                             in 2006        renovate in 2007
                  Households  Households  Households  Households  Households
                 that bought        that  that spent        that        that
                      a home   renovated    $1000 or   intend to   intend to
                     in 2006     in 2006     more on  buy a home       spend
                                         renovations     in 2007    $1000 or
                                             in 2006                 more on
                                                                     in 2007

                   (per cent)  (per cent)  (per cent)  (per cent)  (per cent)
    St. John's             7          42          37           7          46
    Halifax                6          42          36           7          48
    Québec                 6          38          31           6          45
    Montréal               4          42          35           6          47
    Ottawa                 6          41          35           7          47
    Toronto                5          39          33           9          43
    Winnipeg              10          42          35           8          50
    Calgary               10          36          31          14          47
    Edmonton              12          39          33          11          51
    Vancouver              6          35          30           8          43
    Total                  6          39          33           8          46

For further information:

For further information: Kristen Scheel, (613) 748-4632,
kscheel@cmhc-schl.gc.ca; This release is also available on the CMHC Web site:
http://www.cmhc-schl.gc.ca; For regional information contact: St. John's:
Chris Janes, CMHC, (709) 772-2403, cjanes@cmhc-schl.gc.ca; Halifax: Matthew
Gilmore, CMHC, (902) 426-4686, mgilmore@cmhc-schl.gc.ca; Québec: Frédéric
Brie, CMHC, (418) 649-8102, fbrie@cmhc-schl.gc.ca; Montréal: Sandra Girard,
CMHC, (514) 283-5075, sgirard@cmhc-schl.gc.ca; Ottawa: Pascal-Yvan Pelletier,
CMHC, (613) 748-5120, ppelleti@cmhc-schl.gc.ca; Toronto: Jason Mercer, CMHC,
(416) 218-3410, jmercer@cmhc-schl.gc.ca; Winnipeg: Jeff Powell, CMHC, (204)
983-5693, jpowell@cmhc-schl.gc.ca; Edmonton: Richard Goatcher, CMHC, (780)
423-8729, rgoatche@cmhc-schl.gc.ca; Calgary: Lai Sing Louie, CMHC, (403)
515-2991, llouie@cmhc-schl.gc.ca; Vancouver: Robyn Adamache, CMHC, (604)
737-4144, radamach@cmhc-schl.gc.ca

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