2018 will be another banner year for the residential construction industry in the Georgian triangle.
My forecast for 2017 was the same thing (a banner year) and boy did it come true, 2017 ended up being a banner year for construction mainly because of the ultra hot real estate market.
Well 2018 has all the same markings that 2017 did with a high demand being pushed by a real estate market that continues to rise ever higher.
There will be a run over from work from 2017 that will keep the construction hot until the spring arrives even with historic cold temperatures arriving early as there was a lot of late starts in the fall because of the amount of work going on and the difficulty to get permits and drawings approved and completed in a timely manner.
The spring of 2018 doesn't look like its going to be a let down, with people looking to start building new homes and cottages. Contractors are regularly taking phone calls about new spring builds daily.
One of the biggest changes in construction that started in 2017 was the demand for additions to existing homes, this will continue to grow in demand as the value of real estate rises convincing people to add to their homes instead of trying to sell and find a new larger home. An addition generates almost as much work as a new home with the length of time it takes to build an addition, those making it harder for people to find a quality contractor to build or renovate their home.
The main driver in this area being the real estate market, the market has slowed in the late fall and into the winter but has not slowed to the levels that are usually seen in this area with homes still selling regularly and any home priced aggressively sells quickly. The spring is shaping up to look a lot like the spring 2017 which was a red hot run away train, driving prices to record heights. Now I'm not saying that the 2018 real estate market will be as crazy and as fast moving as the 2017 spring market but I believe that prices will not recede and will climb higher because of the overall lack of houses to supply the amount of people that are moving to the area.
Here's what each market is looking like;
Collingwood is the leader for construction in the area with most people wanting to move there as their first choice, this has pushed the real estate market to dizzying heights, driving the need for renovations and additions with new custom homes where you can find places to fit them.
With new by-laws allowing rentals there is a sudden demand for building of carriage houses and basement apartments. The biggest thing about construction in Collingwood will be finding contractors to do the work and sub-trades to lay tile and drywall.
The Blue Mountain area is one area that there are still vacant land to build new custom homes, this is one of the main reasons that there are more custom homes being built there then anywhere else in the area.
Custom homes aren't the only thing that is happening with the high value of real estate a lot of people are opting to renovate their older cottages and chalets to bring them up to date and also to add more square footage. The amount of permits being granted and asked about is going to make for a very busy year in the Blue Mountains.
Wasaga Beach has always had a strong construction industry, 2018 will be no different. Wasaga Beach has new custom homes, sub-divisions, renovations and additions all being built. Every street in the town has some form of construction going on as the need for houses and the cost of the real estate both rise higher. Nothing will change, if anything it will continue to get busier as Wasaga Beach has room to grow.
In the town of Creemore for the first time in a long time there is a fair amount of construction going on (for Creemore) with some new homes being built and some renovations as well. There isn't a lot of houses that come up for sale in the village so that tempers the need for construction. But for the first time in a decades they have started construction on a new small sub-division that will add new homes that are badly needed to the village. As the value of a lot of older homes continue to rise these homes will be sold and then renovated creating more work. Also new by-laws that force homeowners to fix up their homes will also help feed the construction industry with older run down homes changing hands.
The location of Mulmur Township being the closest to Toronto has made it an ideal location for people who are looking to have a country property but don't need to live near Collingwood. Mulmur being a simple drive is fueling a very strong construction market with a lot of people looking to build new custom homes on property that they have recently purchased or to build on after owing the property for a while before the market skyrocketed. It will be very busy this year.
If you are thinking of building or renovating in 2018 then the earlier you get organized and find yourself a contractor to work with the better chance that you will be able to get your project started and completed in a timely manner. If you wait don't except to find quality contractors waiting for your work, you will be waiting for your turn in line and also you might have to settle for things that you really don't want.
2018 will be strong construction market so you will have to be patient in whatever you do.
Village Builders Inc.