Most homeowners who renovated expect increased resale value will outweigh expenditure
TORONTO, Mar 31, 2005 (Canada NewsWire via COMTEX) — CIBC (NYSE: BCM, TSX: CM) – Nearly half (49%) of Canadian homeowners have renovated their homes in the past two years, according to results from the 2005 CIBC Spring Homeownership Poll released today. On average, homeowners who renovated spent approximately $12,000 on their renovations, and expect that these renovations added just over $17,000 to the resale value of their home.
“The resale housing market is strong, so renovating your home to make it easier for potential purchasers to move right in will make sense for many homeowners,” said Paul Mims, Vice President, CIBC Mortgages and Lending. “While homeowners need to be cautious about the potential payback, kitchen and bathroom renovations tend to add the most value when you’re selling your home.”
Homeowners in Quebec are most likely to have renovated in the past two years (56%), while homeowners in British Columbia and Atlantic Canada have the lowest rate of home renovators (43% and 44% respectively). The most popular renovations in the past two years have been to the exterior of the home (roofing, windows, siding), which 42% of renovators undertook. Among renovators, 26% renovated their bathrooms, while 24% took on their kitchens.
“Many Canadian homeowners are literally taking these renovations into their own hands, with nearly two in five (39%) renovators completing the project on their own,” said Mims. “Do-it-yourself home improvements are most popular in Saskatchewan (54%), and least popular in Ontario (31%).”
The renovation trend is expected to continue in the coming year, with 34% of homeowners planning or considering renovations. Those planning to renovate expect to spend an average of approximately $7,000. The most popular planned renovations are the exterior of the home (34%), the bathroom (17%), the kitchen (14%) and flooring (13%).
As noted in a recent CIBC economic report, spending on home renovations totalled a record-high $28 billion in 2004 and is projected to rise to $30 billion in 2005.
Those who are planning to renovate or purchase a home may want to enter The CIBC “Make your dream home a reality” contest for the chance to win a grand prize of $20,000, or one of three secondary prizes of $10,000. For more information and full contest rules, visit www.cibc.com/dreamhome before May 31, 2005.
CIBC is the second largest residential mortgage provider in Canada, with $86 billion in single-family residential mortgages under administration. The CIBC Better than Prime Mortgage is one of the most popular mortgages in Canada, with a no-haggle interest rate and the flexibility to convert to a closed fixed-rate mortgage at any time. To find other news releases and information about CIBC, visit the bank’s Press Centre at www.cibc.com.
JUST THE FACTS(x)
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Homeowners who have done
any interior or exterior
renovations to their home
in the past two years Canada BC AB MB SK ONT PQ ATL
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Yes 49% 43% 48% 49% 53% 48% 56% 44%
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No 51% 56% 52% 51% 47% 52% 43% 56%
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% of renovators Mean amount of
Most popular who undertook Mean amount expected increase
renovations done renovation spent in resale value
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House exterior
(roofing, windows,
siding) 42% $6,000 $7,000
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Bathroom(s) 26% $3,000 $3,000
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Kitchen 24% $6,000 $7,000
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Basement 17% $6,000 $9,000
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Landscaping 16% $4,000 $5,000
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How past renovations
were completed Canada BC AB MB SK ONT PQ ATL
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Hired outside contractor 45% 47% 45% 41% 23% 51% 40% 36%
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Do-it-yourself homeowner 39% 36% 41% 41% 54% 31% 47% 51%
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Family member or friend
completed the project 12% 15% 10% 14% 19% 12% 10% 12%
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Hired a decorator 1% 1% 0% 0% less 1% 1% 0%
than
1%
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Other 3% 0% 3% 4% 3% 4% 1% 1%
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Homeowners who are
planning interior or
exterior renovations
to their home in the
next 12 months Canada BC AB MB SK ONT PQ ATL
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Yes, definitely 22% 19% 24% 26% 34% 24% 18% 24%
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Yes, considering it 12% 15% 17% 15% 10% 10% 9% 13%
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No 65% 65% 59% 58% 55% 65% 70% 63%
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Don't know/not stated 1% 1% less 1% 1% 1% 2% 0%
than
1%
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Most popular renovations % of those who Mean amount
planned plan to renovate planning to spend
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House exterior (roofing,
windows, siding) 34% $6,000
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Bathroom(s) 17% $4,000
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Kitchen 14% $7,000
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Flooring 13% $6,000
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The 2005 CIBC Homeownership Poll was conducted by The Strategic Counsel between January 25th and February 1st, 2005 and was based on a randomly selected sample of 2,150 English and French speaking Canadian household decision-makers (2,003 current homeowners, 147 current renters who are potential homebuyers). With a sample of this size, the results are considered accurate to within +/- 2.11% percentage points, 19 times out of 20, of what they would have been had the entire Canadian adult population of homeowners and renters who are potential homebuyers been polled. The margin of error will be larger within regions, Census Metropolitan Areas, and for other sub-groupings of the survey population. The sample of household decision-makers is representative of the regional and age distribution produced by Statistics Canada. Percentages may not sum to one hundred due to rounding or the acceptance of multiple mentions.
(x) Renovations excluded regular up-keep, maintenance and basic home decorating such as painting. Dollar figures have been rounded to the nearest thousand.
