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Estwing magic
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Discussion Starter · #1 ·
This is a Canadian report from the TD Bank but it draws some interesting conclusions:

The residential renovation market has been strong. It is expected to cool down somewhat but will still see positive growth.

There has been a shift from DIY to hiring contractors. As much as we like to trash guys like Mike Holmes, renovation reality shows may be influencing consumers to hire contractors (and reputable contractors).

New home buyers will spend money on renovations almost immediately (I assume this is basement development, landscaping, etc.).

The population is aging and seniors will spend money on renovations rather than moving.

Natural disasters are good for the renovation industry.

Here is what we are experiencing here in Perky Nipples: Major renovations like complete gut jobs and additions are coming from professionals who want to live in established neighborhoods. We are also seeing good business from seniors who upgrade kitchens and baths. They like occ sensors, timers and LED lighting (so they don't have to change light bulbs). We are also seeing basement developments on newer homes.

One thing I know almost certainly: The future of the renovation market is in mid to high end projects. As interest rates increase (and they will eventually) and easy credit dries up, the client base to work with are those who either have money in the bank or have solid credit credentials.

What say you gurus?

www.td.com/document/PDF/economics/special/CanadianRenovationSpending.pdf
 

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Just read in Macleans there's going to be another interest rate battle.. BMO just dropped their 5year fixed to 2.99%. Here they have been saying rates are going to keep rising. Shows what the experts know!

Renos will continue to be strong out here.. unless the real estate market finally pops or fizzles out. People have been making too much money for too long off real estate.. everyone wants a piece of that pie.
 

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Estwing magic
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Discussion Starter · #3 ·
You might still have room to grow, Frunk. According to CMHC, out of ten Canadian cities, Vancouver has the lowest percentage of households that are spending on renovations (33%). St. John's is highest at 43%. We are somewhere in the middle.

CMHC also says that most people who are renovating have the money in the bank. Another reason to go after the upper crust. They have more money in the bank :) .
 
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