The demand for homes in Canada has by far outstripped the ability of constructors and sellers to supply and this has led many Canadians to turn to other options than buying a house. Canadian homeowners looking to create more space in their homes or increase on the value of their homes are opting to put in their money towards home renovation.
The idea of buying a home is something many Canadians are presently putting aside as a result of the current market situation. The high home prices in the city have way exceeded the average income of households.
This year, the percentage of people looking forward to renovating their home is expected to increase significantly.
According to the CIBC survey results, 48% of Canadians are going to go through home repairs and on an average homeowners are ready to pay $11,800 on renovations which is a decrease from the previous year’s which were at $13,000 and $12,300 in 2016 and 2015 respectively.
In Toronto’s sizzling hot real estate, residents are not willing to move out of the housing market in search of homes, rather, they are embarking on massive renovation projects.
The average home prices in Greater Vancouver and the GTA continue to affect prices across the country with the average Canadian home price at $559,317.
According to the Canadian Real Estate Association, there was a 10.4% increase in home prices for the month of April and activities in the nation’s leading markets having greater influence on other markets.
With the current high market prices, many buyers and homeowners are waiting to see the outcome of the market in months to come but for the time being, renovation has become the new trend in the market.
Jamie Golombek, managing director of CIBC Wealth Strategies in a report, more people are claiming that it is unwise to relocate to a more spacious or new home when one can use the money to do renovations to their homes.
Out of all the leading real estate markets, Ontario and British Columbia are expected to see a greater number of homeowners going into renovation with homeowners planning to spend at most $16,000 and $13,200 respectively on renovation.
With the average home price at $920,791 in the GTA, it does not come as a surprise that about 58% of homeowners are deciding not to buy new homes with owners planning to spend about $21,340 on renovation.
This new market trend is fast becoming a cut across pattern among homeowners with many owners showing concern over the increasing home prices.