Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 04, 2005 12:48 ET

BC Renovation Expenditures Take Off

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 4, 2005) - Renovation expenditures will reach $6.1 billion by 2006 according to Canada Mortgage and Housing Corporation (CMHC). The Housing Market Outlook Third Quarter 2005 report released today contains the annual renovation expenditure forecast.

The very active resale market has led to a boom in renovation spending since 2000, according to Carol Frketich, CMHC's BC regional economist. "People tend to make repairs and improvements before selling their home, or renovate when they buy an existing home," says Frketich, "with almost 100,000 homes changing hands in British Columbia this year, there will be an extensive amount of renovation activity."

Low interest rates have played a role in the renovation boom. Tapping into home equity through mortgage refinancing, or secured lines of credit has been an important way of financing larger renovation projects.

"As well, the high price of housing makes renovation a more attractive option to upgrade a home than moving to a different property," added Frketich. CMHC expects the average MLS® price will reach $319,000 this year, a 10.3% gain from last year.

Growth in renovation expenditures will exceed growth in new construction spending during the next two years. New construction spending is forecast to increase 8.5% to $5.8 billion in 2005 and stay near that level in 2006.

To view the table attached to this release please click on the following link: http://www2.ccnmatthews.com/database/fax/2000/0804cmhc.gif

Contact Information

  • Canada Mortgage and Housing Corporation
    Carol Frketich
    BC Regional Economist, CMHC
    (604) 737-4067 or Cell: (604) 787-5598
    cfrketic@cmhc.ca
    www.cmhc.ca