The current residential real estate situation has created a bit of a unique situation. Not only are homes worth more now, but new home construction is up, way up. The real estate market is very tight, and this has caused some home owners to stay put. Gone are the days where young families seek out that slightly larger home to better fit their growing family and better suit their busy lifestyle. The current situation means that no longer can young families afford to sell their small home in exchange for a larger one. Right now young families are forced to either spend the extra money and build a new home, or place that money on expanding their existing home. This situation has been a big contributor to our current worker shortage, especially in the construction trades.
Even with the increasing costs of renovating or building, the cost of either building an addition or brand new still remains to be the more popular and viable solution. Affordable homes in Estevan are increasingly difficult to find, especially those suitable for young families. Young families are making more now than in the past, however increasing housing costs have out paced family incomes. So the young family is forced to “stay put” and renovate rather than seek out a larger, more suitable home. The housing market still has the odd 1,200 square foot home on the market, but they no longer fit into the “affordable” or “starter” category.
In the “Consumer Intentions to Buy” report released by Canadian Mortgage and housing in May of 2006, homebuyers stated that the most common reason for not building or buying a home is that the costs were too high. In those surveyed, the vast majority of those considering building a new home generally had only two people living in the home, whereas those considering renovating had four living in the house. In both case, the main reason for the respondent not renovating or building still remains the same; costs too high.
One of the most interesting and telling points of the survey results is that the expected cost of buying a home (whether it be new or previously lived in) was less than $200,000. This expectation, coupled with the current housing market in Saskatchewan rapidly approaching an average cost of $200,000 per home, would lead one to think that the average family would be less inclined to buy a home in the near future.
The housing market is stronger than ever, families are getting smaller, incomes are increasing, which leaves more money for building or renovating. However with the increasing population and the popularity of moving back to Saskatchewan from Alberta, Saskatchewan is currently experiencing one of the tightest markets in real estate history.
What this means is the average home owner is having to either resort to hiring under-skilled labourers or do the work by themselves. The end result is homes that are built with a lowered degree of workmanship and longer build times. As a building official, I prefer to deal with skilled contractors than the owner. Usually the owner is more concerned with cutting cost than getting the job done right. You may think this is strange especially if the owner is the one that will have to live in the home, but it’s true. Contractors still have to protect themselves from possible litigation, so they do this by following the orders of the local authority, whereas the owner has no fear of litigation if the home fails, they just have themselves to blame for any future issues.
So all I have to say is, if you want to buy or renovate or add to your home, get experienced trades-people. Hire draftsmen or designers for the plans, you will and your contractor(s) will be happy you did. Get permits, it’s always better if the owner does this….contractors can sometimes be forgetful. And always call your building official for inspections…..it keeps contractor’s honest hearing and seeing the building official…..trust me, you’ll be happy you did.
That’s all I got.
Under Miner
Even with the increasing costs of renovating or building, the cost of either building an addition or brand new still remains to be the more popular and viable solution. Affordable homes in Estevan are increasingly difficult to find, especially those suitable for young families. Young families are making more now than in the past, however increasing housing costs have out paced family incomes. So the young family is forced to “stay put” and renovate rather than seek out a larger, more suitable home. The housing market still has the odd 1,200 square foot home on the market, but they no longer fit into the “affordable” or “starter” category.
In the “Consumer Intentions to Buy” report released by Canadian Mortgage and housing in May of 2006, homebuyers stated that the most common reason for not building or buying a home is that the costs were too high. In those surveyed, the vast majority of those considering building a new home generally had only two people living in the home, whereas those considering renovating had four living in the house. In both case, the main reason for the respondent not renovating or building still remains the same; costs too high.
One of the most interesting and telling points of the survey results is that the expected cost of buying a home (whether it be new or previously lived in) was less than $200,000. This expectation, coupled with the current housing market in Saskatchewan rapidly approaching an average cost of $200,000 per home, would lead one to think that the average family would be less inclined to buy a home in the near future.
The housing market is stronger than ever, families are getting smaller, incomes are increasing, which leaves more money for building or renovating. However with the increasing population and the popularity of moving back to Saskatchewan from Alberta, Saskatchewan is currently experiencing one of the tightest markets in real estate history.
What this means is the average home owner is having to either resort to hiring under-skilled labourers or do the work by themselves. The end result is homes that are built with a lowered degree of workmanship and longer build times. As a building official, I prefer to deal with skilled contractors than the owner. Usually the owner is more concerned with cutting cost than getting the job done right. You may think this is strange especially if the owner is the one that will have to live in the home, but it’s true. Contractors still have to protect themselves from possible litigation, so they do this by following the orders of the local authority, whereas the owner has no fear of litigation if the home fails, they just have themselves to blame for any future issues.
So all I have to say is, if you want to buy or renovate or add to your home, get experienced trades-people. Hire draftsmen or designers for the plans, you will and your contractor(s) will be happy you did. Get permits, it’s always better if the owner does this….contractors can sometimes be forgetful. And always call your building official for inspections…..it keeps contractor’s honest hearing and seeing the building official…..trust me, you’ll be happy you did.
That’s all I got.
Under Miner
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