Canadian Real Estate Renovation Trends (2021)

 

Canadians invest in home renovations 

to improve quality of life, not to add value in current 

Canadian real estate market

• Challenging Canadian housing market conditions put additional importance to home renovations since the start of COVID-19, both for those looking to stay and those selling
• More than half of Canadians renovated their home in 2020 with the intention of living in it, with 29% renovating to enhance their lifestyle for non-essential reasons (aesthetic and/or recreational purposes) and 29% doing so for essential reasons (safety and maintenance)
• Only 16% of Canadians said they renovated to increase the market value of their home in order to sell within in the next one to three years 

A new report by RE/MAX Canada is shedding light on shifting consumer trends in home renovations and the perceived return on investment (ROI), as impacted by COVID-19 and historically tight conditions across the Canadian real estate market. The RE/MAX 2021 Renovation Investment Report found that more than half of Canadians renovated their home last year for personal or “non-ROI” purposes, with three in 10 (29 per cent) choosing to renovate for non-essential “lifestyle” reasons, such as recreation-inspired projects.

A Leger survey conducted on behalf of RE/MAX Canada found lifestyle impact to be the top reason for renovating during the course of the pandemic, ahead of motives such as making essential renovations to accommodate life in lockdown (17 per cent), or to increase the value of the home with the intention of selling in the next one to three years (16 per cent).

Despite the trend of home renovations for personal use and enjoyment, 59 per cent of Canadians still said they always consider the return on investment that a renovation will have on their home’s overall market value, so while there is a current renovation trend based on lifestyle aspirations, practicality is never far from the surface.

“The notion of the home as an investment continues to be an important consideration for Canadian homeowners; however, they clearly value the home for what it is meant to be: a place to live and enjoy spending time,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The pandemic has influenced virtually every aspect of our lives, including what Canadians want and need in a home. The uncertainty also compelled many sellers to move to the sidelines or renovate their home to accommodate current quality-of-life needs, which has further tightened conditions across many Canadian real estate markets.”

This lack of inventory is expected to be a continuing factor in the spring housing market across Canada. In its market outlook for 2021, RE/MAX identified seller’s market conditions in 82 per cent of regions, with a noted spike in demand for single-family dwellings putting additional pressure on already limited supply.

“Canadian real estate has continued to perform above and beyond expectations, with an increased opportunity for sellers to see a strong return on their investment given current demand,” says Christopher Alexander, Chief Strategy Officer and Executive Vice President, RE/MAX of Ontario-Atlantic Canada. “As we’ve seen over the past year, strong seller’s markets continue to dominate many regions across Canada, with homes selling in record time and at record prices. While the impact that specific renovations have on ROI will vary by regional conditions, the Canadian housing market has generally shown us that you can’t go wrong with anything that improves your home in any way.”

With this in mind, nearly one year after the start of cross-country lockdowns, Canadians are still making renovation decisions based on pandemic living, with over half (55 per cent) of survey respondents stating that they have already done or would like to do a home renovation within the next year. Of this group, 35 per cent say they would opt for minor renovations, such as painting.

RE/MAX brokers across Canada were also surveyed for the report and identified fresh paint and landscaping as two upgrades that yield a high ROI, despite being low-budget and minor in nature. This is in alignment with and good news for the nearly half (47 per cent) of Canadians who said they would want to keep their home improvement budget below $10,000, even if the guaranteed ROI was at least 10 per cent. Three in 10 Canadians (31 per cent) would bump up their spending from $10,000 to just under $50,000, and only four per cent would consider spending more than $50,000.

Sixty-five per cent of RE/MAX brokers surveyed also claim that kitchen upgrades, including cabinets, countertops and appliances, yield the highest ROI for sellers, with 87 per cent of brokers naming the kitchen renovation as the top home improvement resonating with buyers in the Canadian real estate market.

Download the infographic HERE

Download the table HERE

Renovations and Canadian Real Estate: Regional Market Insights

In Western Canada, Calgary, Edmonton and Victoria, homebuyers want the move-in-ready experience, with homes that are already entirely renovated being most in demand. Given this, sellers in these regions have the potential to see a large return on their renovation investment. In Greater Vancouver, outdoor improvements are one of the optimal ways for homeowners to get the best ROI, with landscaping among the top five renovations to undertake. It’s also one of the most common renovations that homeowners in this region are taking on themselves, versus hiring a professional to do the work.

Throughout Ontario, RE/MAX brokers are reporting that listings are selling quickly, regardless of their condition or renovation status. Regions including Toronto, Ottawa, Hamilton-Burlington, Niagara, London and Kingston/Napanee saw a strong shift toward outdoor upgrades and amenities in 2020, specifically the addition of a pool or larger exterior living area. Much of this demand was prompted by COVID-19 and the desire for more recreational space within the home – a trend that is not anticipated to be a permanent one. Bathroom renovations and new flooring are highly regarded as yielding the best return on investment. Across markets such as Mississauga, Thunder Bay, London, Barrie and Ottawa, painting is noted by RE/MAX brokers as the top renovation that homeowners are doing themselves, as well as one of the best ways to also see an improvement on ROI.

In Atlantic Canada provinces, RE/MAX brokers also placed importance on upgraded kitchens, but noted flooring upgrades as one of the best renovations for homeowners to get optimal ROI in regions including Fredericton, Saint John and St. John’s. Meanwhile in Charlottetown, roofing upgrades and landscaping are two of the top renovations that can be done relatively quickly to improve ROI, along with painting, as echoed across nearly all regions surveyed. In Saint John, the finished basement is one of the most sought-after renovations by buyers and creating more open-concept spaces is noted as one of the top three ways for sellers to get the best return on their investment.

Consumers’ Understanding of ROI

Only 51 per cent of Canadians claimed to have a thorough grasp of the renovation process and nearly half either don’t know or disagree that they have the understanding needed to make ROI-enhancing renovation decisions. Furthermore, 50 per cent of Canadians surveyed said they expect their REALTOR® to advise them on the right renovations to take on if they expressed interest in doing so when purchasing a home. This reliance on external professionals to guide home-buying decisions is anticipated to continue.

Additional highlights from the 2021 RE/MAX Renovation Investment Report

• When it comes to the renovations that yield the best return on investment, Canadians see these as the best renovations to undertake:
  • 70% of Canadians state redesigning larger spaces, such as kitchens or washrooms
  • 56% of Canadians state minor updates, such as refreshing paint
  • 55% of Canadians state landscaping the outdoor space
  • 50% of Canadians state changing the home layout, including adding rooms or knocking down walls
  • 32% of Canadians state updating décor and furniture
• 49% of Canadians prefer to contract out most or all of the renovation work
• 33% of Canadians consider themselves to be very capable when it comes to home renovations, and don’t need professional help

About the 2021 RE/MAX Renovation Investment Report
The 2021 RE/MAX Renovation Investment Report includes data from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on insights and local developments. Regional summaries with additional broker insights can be found at remax.ca.

About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,540 Canadians was completed between February 4-7, 2021, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

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Fraser Valley Housing Market Statistics - March 2021

 

March shatters monthly sales and new listings records in the Fraser Valley Fraser Valley real estate hit two historical highs in March, setting records for both  sales and new listings processed in one month since the Fraser Valley Real  Estate Board’s (FVREB) inception in 1921. In March, the FVREB processed 3,329 residential and commercial sales on its  Multiple Listing Service® (MLS®), an increase of 131 per cent compared to March  2020 and 18 per cent more than were processed in February. The previous record  of 3,006 sales was set in March of 2016. Larry Anderson, President of the Board, said of this month’s statistics, “This market  is uncharted territory for Fraser Valley real estate. The surprising strength of the   economy, the influence of the pandemic and a lack of inventory of all property  types has created unprecedented demand for housing in our region.   “It is very stressful for buyers. REALTORS® are working hard to guide them through  what has become a protracted, powerful seller’s market. As we continue to help our  clients grapple with escalating prices and multiple offers, March did bring some  good news. It set a record for volume of new listings received improving selection,”  said Anderson.   The Board received 5,087 new listings in March, an increase of 91 per cent   compared to March of last year, and 56 per cent more than were processed in   February. The previous high for new listings was 4,458 in April 2008. Total active  inventory for March was 5,012, a decrease of 18 per cent compared to last year’s  6,083 active listings, however 22 per cent higher than February 2021.   Baldev Gill, Chief Executive Officer of the Board, added, “The impact of the pandemic  on the market cannot be overstated and as we know from the province’s latest announcement, we are in a precarious situation currently. Since the end of the first  lockdown in 2020, the real estate profession has led the way on protecting its  members and the public. “Realtors take this extra duty to protect their clients during private, in-person showings  very seriously and will continue to remain vigilant until vaccines are rolled out to the  greater population,” added Gill.   Across Fraser Valley, in March, the average number of days to sell a single-family  detached home was 15 and a townhome was 14 days. Apartments took, on average,  31 days to sell.   MLS® HPI Benchmark Price Activity Single Family Detached: At $1,237,900, the Benchmark price for an FVREB single-family detached home increased 6.4 per cent compared to February 2021 and increased 25.3 per cent compared to March 2020. Townhomes: At $624,500, the Benchmark price for an FVREB townhome increased 4.0 per cent compared to February 2021 and increased 13.7 per cent compared to March 2020. Apartments: At $465,400, the Benchmark price for an FVREB apartment/condo increased 3.2 per cent compared to February 2021 and increased 6.5 per cent compared to March 2020. For the FULL Statistics Package please click HERE  Know someone moving ANYWHERE in the WORLD?  Call us today--we know the BEST agents everywhere!!   Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!   Office Phone: 604-743-7653

 

Another month, another record 

for property sales in the Fraser Valley

For the sixth consecutive month, Fraser Valley’s real estate market experienced  property sales at levels never seen before in the 100-year history of the Fraser  Valley Real Estate Board (FVREB). In February, the FVREB processed a total of 2,815 sales on its Multiple Listing  Service® (MLS®), an increase of 108 per cent compared to February 2020 and  64 per cent more than were processed in January 2021. To provide a historical  perspective, sales in February were 88 per cent above the 10-year average for  that month; and 18 per cent higher than the previous record of 2,387 sales in  February 2016. Chris Shields, President of the Board said of this month’s record numbers,  “This is new territory for us. We have never seen such consistent and persistent  demand for housing in the Fraser Valley.   “What’s fueling the demand is the combination of record-low interest rates and  the response to the pandemic. It’s not something that could have been predicted  and it has created a very complex market for buyers that requires the knowledge  and expertise of a professional. For family-sized homes, prices climbed 3 to 5  per cent in February alone and sold on average in three weeks. We understand  the stress and frustration with the market currently and we’re here to help guide  and protect home buyers.”   The Board received 3,265 new listings in February, an increase of 28 per cent  compared to February of last year, placing it second highest for February for  new listings in the last decade. The total active inventory for February was 4,120,  down 28 per cent from last year’s 5,741 active listings, and the lowest ever for  the month.   Baldev Gill, Chief Executive Officer of the Board, added, “We know more people  are choosing to move to the Fraser Valley right now because they’re seeking  more usable space, a better quality of life, and they recognize that their housing  dollar goes further. The challenge is selection. We anticipate as the vaccination  roll-out accelerates, confidence to list will increase and we’ll see inventory return  to more normal levels. In the meantime, REALTORS® will continue to ensure   consumer safety is at the forefront of all home viewings and transactions.”   Across Fraser Valley, in February, the average number of days to sell a   single-family detached home and a townhome was 21 days. Apartments took   on average 35 days to sell.   MLS® HPI Benchmark Price Activity Single Family Detached: At $1,163,400, the Benchmark price for an FVREB single-family detached home increased 5.1 per cent compared to January 2021 and increased 19.9 per cent compared to February 2020. Townhomes: At $600,300, the Benchmark price for an FVREB townhome increased 3.4 per cent compared to January 2021 and increased 10.1 per cent compared to February 2020. Apartments: At $450,900, the Benchmark price for an FVREB apartment/condo increased 2.5 per cent compared to January 2021 and increased 5.3 per cent compared to February 2020. For the FULL February Listings Statistics Package, please click HERE Know someone moving ANYWHERE in the WORLD?  Call me today--I know the BEST agents everywhere!!   Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

Fraser Valley Housing Market Statistics - January 2021

 

Fraser Valley real estate market 

full steam ahead in January; 

another record-setter for property sales

In a month that is usually one of the quietest in real estate, Fraser Valley’s   market continued at a breakneck pace, producing the strongest January sales   on record as well as a modest uptick in new listings. The Fraser Valley Real Estate Board processed a total of 1,718 sales of all  property types on its Multiple Listing Service® (MLS®) in January 2021, an  increase of 76 per cent compared to January 2020 and 18 per cent fewer then  were processed in December 2020. Sales in January set a new, record high  for the month; 72 per cent above the 10-year average, and 28 per cent higher  than the previous record of 1,338 sales set in January 2016.   “Buyers are very motivated right now,” said Chris Shields, President of the  Board, “Lending rates are the lowest they’ve ever been, your housing dollar goes further in the Fraser Valley and we’ve seen a societal shift in the last year  in how people value their homes. People are asking us to find them more  space.   “I am working with a young couple who want and are able to move up – from  a condo to a townhome – due to interest rates and the equity they’ve gained   over the last couple of years. The challenge is supply. It improved slightly in  January, but we’ve got a long way to go to replenish our housing stock. It   remains a seller’s market.”   The Board received 2,784 new listings in January 2021, an increase of 26 per   cent compared to January of last year. Total active inventory for the month was  4,210, down 18 per cent from last year’s 5,143 active listings, and still 30 per  cent below the 10-year average.   Baldev Gill, Chief Executive Officer of the Board, added, “Homeowners may  be reluctant to sell because of concerns about buying and selling safety   protocols; or the challenge of finding a new home to buy. The industry has   worked hard to make it as easy as possible for you to thoroughly evaluate   homes online first and then, for serious, final consideration, strict regulations  are in place for in-person viewing.” “And note, we’re already seeing an improvement in supply levels compared  to December, a trend we anticipate that will continue as spring approaches  bringing what is typically one of the busiest markets of the year.”     In January 2021, the average number of days to sell a single-family detached  home in the Fraser Valley was 35, compared to 60 days in January 2020; 28  days on average to sell a townhome and 37 days for apartments, compared to  47 and 49 days respectively, in January of last year. MLS® HPI Benchmark Price Activity Single Family Detached: At $1,106,500, the Benchmark price for an FVREB single-family detached home increased 2.5 per cent compared to December 2020 and increased 15.2 per cent compared to January 2020. Townhomes: At $580,800, the Benchmark price for an FVREB townhome increased 0.8 per cent compared to December 2020 and increased 7.2 per cent compared to January 2020. Apartments: At $439,800, the Benchmark price for an FVREB apartment/condo increased 0.3 per cent compared to December 2020 and increased 4.4 per cent compared to January 2020. For the FULL Monthly Statistics Package click HERE Know someone moving ANYWHERE in the WORLD?  Call us today--we know the BEST agents everywhere!!   Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD! Office Phone: 604-743-7653 Check out our web sites for lots of great information  and to see what we have going on! General Real Estate: gelderman.ca Luxury Homes: fvluxuryhomes.com