101 Facts - Renovation Investment Trends During Pandemic
Thursday Apr 29th, 2021
Ontario has been in lockdown since April 3, 2021, to try and lower the staggering COVID-19 cases in the province. This has not discouraged the real estate market to still remain to buzz with activity in a seller’s market with strict restrictions in place for the industry. Lockdowns can only mean more time to go house hunting, house selling, or house renovating.
This article is focusing on the trends in renovation investment for homeowners and sellers alike during the pandemic. As REMAX reports, only about 16% of homeowners did renovations for selling their property. Meanwhile, 29% did renovations for aesthetic and recreational purposes, and the other 29% for safety and maintenance - both percentages aiming to stay in their residences.
It is helpful to know which renovation item in your checklist should be prioritized for the personal or financial return of investment (ROI). Depending on the market conditions, current homeowners who do a renovation for personal reasons might turn their renovation investments into financial gains if they decide to put their properties for sale. Either way, renovation investment can only give a homeowner good returns with 82% of the region being a seller’s market.
About 47% of Canadians would invest up to $10,000 budget for renovations, 31% would bump it up to less than $50,000, and about 4% willing to do a budget of over $50,000. Below are some of the trends found in the report and survey results.
(56%)Fresh painting and (55%)landscaping have been identified as minor renovations that cost low but give out the most ROI
70% have redesigned large spaces - including kitchens and washrooms
50% are changing their home layout - adding new rooms
65% kitchen upgrades - yield the highest ROI for sellers
87% of brokers naming the kitchen renovation the top renovation to do
Ontario REMAX brokers have observed fast sales on listings that have:
Outdoor upgrades (pools and larger exterior living area) for recreation - although deemed as a temporary trend
Bathroom renovations and new flooring also pulls in a good ROI
In these times, home sellers rely on professional real estate services to let them know which renovations would be a priority for a good return of investment. Talk to JoAnn Visaretis for good advice on how to get the best market value for your home if you are looking to sell your renovated property. You can also download the report and table of Renovation Investment Report below:
*All numbers are based on survey results conducted by Leger on 1,540 Canadians between February 4-7, 2021, and a survey on REMAX brokers.