A record-breaking year for new home sales is creating great opportunities for builders and buyers alike
By Peter Carlyle-Gordge
New home buyers face record low interest rates and a definite shortage of good used housing stock, which is making some purchasers opt for the brand new.
Wayne Bollman, President of the Manitoba Home Builders' Association (MHBA), says the local market is sizzling.
"Last year was the best year for new home starts since 1989, with 756 new single family home permits issued to the end of July, 2002, but this year we already have 802 permits and are well on track to beat the 2002 figures," says the University of Winnipeg graduate, who became president of the Association in March this year.
Mr. Bollman, former managing partner of one of Winnipeg's oldest real estate firms specializing in property management, appraisal and commercial brokerage, states that all indicators suggest low interest rates are here to stay for the foreseeable future, so it's an excellent time for home buyers to get into the new homes market.
"Winnipeg is still a bargain when it comes to prices," Mr. Bollman says. "Equivalent new homes in major cities such as Vancouver, Calgary and Toronto cost considerably more, even when you allow for slightly higher salaries in those cities. Overall home affordability here is definitely a big plus for the city."
Buyers moving here from other large cities are often surprised by what they can buy for much less than their old home cost. Many move up to larger, better homes than the ones they lived in, thanks to Winnipeg's price advantage. "Our builders are among the best and offer technologically advanced products, with many of them building to R-2000 standards, which guarantee home energy efficiency," he says. "Features once considered optional luxuries are often included now as standard and a buyer can easily move into a very attractive new home, starting with prices in the $150,000 range."
Bollman sees two challenges ahead for his industry, but both are being actively addressed right now. One is the availability of city land for future subdivisions. Many of the areas developed over the past 20 years are rapidly filling up and some home builders are doing infill projects.
"At first glance Winnipeg seems to be short of land for housing, but that isn't really true," he says. "The land where Kapyong Barracks sits will likely be available for homes in the near future and there is also still development room in South St. Vital."
But the most promising area is a 3,000 acre parcel of land south of Bishop Grandin Boulevard and west of Waverley Street. "You could fit the entire city of Brandon into it and plans are well under way to free it up for housing," Mr. Bollman says.
He expects this land to come on stream in the next three to five years and to be developed in several stages. A significant part of the land is owned by the province.
The second challenge his association is working on is training and immigration. Many skilled building trades workers are nearing retirement and the MHBA is an active participant in programs that give individuals living on employment insurance benefits or social assistance a chance to gain basic carpentry skills.
The first program ended in March and the trainees have now found employment in the industry. A second intake for the program is currently training at various work sites. Bollman says the MHBA is also working closely with an immigration consulting firm as well as the provincial government to try and attract skilled construction trades workers from Europe and South America.
"Both those areas have good training and apprenticeship programs and we'd like to attract 30 to 50 of their construction trades workers here every year," he says. "We need carpenters, framers, cribbers and others. We're confident we'll get them once they understand the benefits of Canada, with its offer of steady employment, good pay and a high standard of living."
Mr. Bollman says areas such as Steinbach and Winkler have been doing well in attracting skilled industrial and farming workers from Germany and South America, so there's no reason construction trades workers wouldn't move here once they are familiarized with the excellent opportunities available.
"We hope to work closely with the provincial government on this because they have publicly stated new immigration is a real priority for them," he adds. "With our own training programs and an increased focus on new skilled immigrants, we should be able to replenish our own skills pool and ensure new home construction has a bright future."
Retrieved March 14, 2004 from
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