NATIONAL MARKETING COMMITTEE REPORT TO THE CHBA
April 2008 - Whistler, BC

Saskatchewan Housing Market

Saskatchewan continues to lead the country with record sales in the first quarter of 2008.   Saskatchewan Cities experienced a 64.2% increase in starts in 2007 when compared with 2006.  Builders in the two major centres – Regina and Saskatoon continue to be extremely busy and have begun focusing on the challenges facing the industry – shortages of land, escalating lot prices and a lack of skilled tradespeople being at the forefront.  Despite the challenges of our industry, Saskatchewan is prepared for the growth and change

The current shortage of land and tradespeople and the resulting effect of many builders inability to increase production are resulting in flippers, speculators and “private” contractors being more prevalent than every before.

CHBA – Saskatchewan has recently hired a Joint Training Coordinator and Industry Development Coordinator to promote training and careers within the residential construction industry.

The Executive Director’s of the two major local HBA’s (Regina and Saskatoon) are reporting no major changes in public inquiries with the exception of increased activity and concerns regarding new builders starting up in the marketplace and questions from the public regarding these companies.  As expected, some levels of concern from the public regarding possession dates, delays in construction and extended building times are being heard – but overall both Associations are pleased to report that their professional Builder members are currently able to maintain consumer confidence and satisfaction levels.

Builders’ in both Cities now are booking possessions into late 2009 and some into early 2010.

National Marketing Committee Agenda

Heather McGinnis, Saskatchewan Chair continues to speak at Builder Committee meetings in Regina in an attempt to “bring information back to the membership” and this will continue on an ongoing basis.

Corporate Social Responsibility

Homeowner Protection Act

Work continues within the Saskatchewan Associations towards the implementation of the Saskatchewan Homeowner Protection Act.  A recent change in government in late 2007 has resulted in a new draft having being put forward to the Minister of Justice in late April/early May, 2008 with the hopes for First Reading in the Spring sitting.

                City of Saskatoon Implements Mandatory Warranty Protection

The City of Saskatoon implemented a bylaw on February 12, 2007 mandating that all new homes constructed within the City of Saskatoon include Homeowner Warranty Protection.  The Province’s largest warranty provider is reporting a skyrocketing increase in the number of “new builders” requesting warranty coverage resulting from this mandatory protection.

                Warranty Issues

In speaking with the Province of Saskatchewan’s largest warranty provider, The New Home Warranty Program of Saskatchewan; they have continued to see no real change in consumer complaints or warranty issues.  They have however expressed concern about the huge increase in “new builders” entering the industry who have recently acquired warranty coverage and anticipate an increase in complaints and warranty claims due to the housing boom that we are experiencing and many builder’s inability to maintain good quality control and with newer inexperienced builders entering the marketplace for short term gains.  To alleviate some of these concerns, the Warranty Program has implemented some mandatory inspections on the first 3 homes for “new builders” entering the industry. 

                Land Development

Both the RRHBA and SRHBA were pleased to welcome Vince LaBerge of CHBA’s Urban Council Committee who spoke to Builders and Land Developers regarding the land development issues that are similar across the country and offered some insight in dealing with all levels of government.

 

Energy Efficient Housing

Resource Efficient Housing Inc. (REHI) was established on January 1, 2007 and formed by the Regina and Region Home Builders Association, Saskatoon Home Builders Association and Canadian Home Builders Association – Saskatchewan as a non-profit organization to administer and deal with all things Energy Efficient  in Housing in Saskatchewan.

Currently 24 builders are Energy Star certified in Regina while Saskatoon has 19.  In the City of Regina, 40% of new single housing is R2000 or Energy Star and Saskatoon is pleased to report a dramatic increase in the amount of Energy Star homes being built… with the current Government initiatives and REHI’s efforts, that trend is expected to continue.  Saskatchewan continues to lead the country in percentage of R2000 homes being built.

The Gov’t of Saskatchewan offered a $1000.00 grant to all Homeowners purchasing an Energy Star or R2000 home, effective April 1, 2007.   In early 2008 the grant has been extended indefinitely and also has incorporated Energuide 80 in the program.  The program also includes additional grants for Solar Hot Water heating systems, Drain Water Heat Recovery Systems and Natural Gas Appliance installations.

REHI, Regina and Region Home Builders Association and Saskatoon and Region Home Builders Association continue to hold Technical Breakfast and Luncheons for builders, sales people, mortgage professionals, etc. to provide education on grants and rebates available and “selling energy efficiency” in the marketplace. 

Reno Show

Saskatoon and Region Home Builders Association has adopted the Renomark standard and are continuing to work on website design and other initiatives.

Home and Garden Show

The Regina and Region Home Builders Association hosted the 33rd Annual Spring Home and Garden Show and Sale from March 28-31, 2008.  The show was sold out.  Over the years, the Show has seen a reduction in the number of Builder Member Exhibitors.  With the current market situation, this is a trend which will likely continue.  In an effort to encourage Builders to enter the show, the Show offered a Free Booth to all Builder Members.  3 members took advantage of the Offer and all have reported large volumes of sales leads and interest.  Feedback from the show has been very positive with most exhibitors reporting “good traffic”, increased sales leads and increased traffic.  The show saw an increase in visitors of 7% over 2007.

National Housing Day

The Regina and Region Home Builders Association sponsored the CMHC National Housing Day on November 22, 2007.   The sponsorship included a luncheon and discussion by CMHC on their Equilibrium Housing initiative and Ryan Scott, CEO of Avalon Home Builders who spoke on “building green” and the initiatives that his company is taking.

Membership Renewal

Saskatoon and Region Home Builders Association and Regina and Region Home Builders Associations have a 95% and 96% retention rate respectively – some of the highest levels in history. 

Submitted by
Heather McGinnis,
Saskatchewan Chair
April 2, 2008