Renovation Revelations

Albertans have been busy personalizing their home as the province recorded strong renovation numbers in the second quarter of 2012.

According to Statistics Canada, Albertans spent $1.17 billion in renovations for their homes in the second quarter of 2012.

"That's down a bit from the record high set in the first three months of 2012, but there's a seasonal component to the data — renovations always tend to pick up in the January to March period," said Todd Hirsch, senior economist with ATB Financial. "The fact is, it was the strongest second quarter on record."

Hirsch explained renovations to existing homes are indicators of positive economic activity as they reflect Albertans confidence in incomes, job prospects and future economic opportunities. If homeowners felt less secure about the aforementioned job prospects and future opportunities they'd be less likely to make additions and renovations to their homes.

"On the other hand, home renovations can also signal some hesitation on the part of home owners," Hirsch explained. "Building a new home may be the preferred option, but poor economic conditions may tilt the balance in favour of buying a fixer-upper — a less expensive existing home that requires renovations."

Tagged: Calgary | Calgary Real Estate News | Canada | CMHC | Renovation