1. 2.11 CHBA Pulse Survey: Renovator Highlights Peter Norman Chief Economist, Altus Group CHBA Renovators’ Council February 23, 2011

2. Pulse: what it is and how we do it  Mail survey  Typically 6-8 page questionnaire  Tracking questions, as well as new issues each survey  Sent to all CHBA builder members (new home builders, renovators)  External sponsors – CMHC and Natural Resources Canada  Analyzed by Altus Group Economic Consulting

3. A valuable source of information about the homebuilding industry  Up-to-date monitoring - takes the “pulse” of the homebuilding industry  Gets the views of both new home builders and renovators  Trending – tracks how key aspects of the homebuilding industry are changing over time  Regional results - can look at variation across the country  Benchmarking - lets individual homebuilders gauge their performance against other builders  Fills the gaps – allows exploration of issues not covered by other sources that are important to the homebuilding industry

4. Recent Pulse Highlights

5. Source: CHBA Pulse Survey, Winter 2011 % of Renovators Renovators in all regions except Ontario reported higher activity on average in past year… Change in renovation activity in last 12 months

6. Source: CHBA Pulse Survey, Winter 2011 % of Renovators … and in general were relatively optimistic about increased work for the next year Expected change in renovation activity in next 12 months

7. Source: CHBA Pulse Survey % of Builders Almost two-thirds of CHBA builder members involved in renovation work to some degree % of Total Revenues Generated by Renovation Work

8. Source: CHBA Pulse Survey, Winter 2011 About 1 in 4 builder members generate at least half of revenues from renovation work % of Pulse Respondents Reporting at Least 50% of Revenues In Past Year Generated from Renovation Work

9. Source: CHBA Pulse Survey % of Renovators This year’s top critical problems for renovators

10. Source: CHBA Pulse Survey % of Renovators Average size: Average duration: $50,0008 weeks $50,000 8 weeks Almost half of renovation projects by CHBA/APCHQ members valued at more than $50,000

11. Altus Group’s Outlook for Renovation Spending

12. Source: Altus Group based on Statistics Canada data 2002=100 (constant dollars) After more than doubling in previous 10 years, real renovation spending stalls

13. Source: Altus Group, The FIRM Residential Mortgage Survey % of Homeowners Agreeing Completely Planning Renovations over $5,000 Homeowner renovation intentions Wane

14. Source: Altus Group, The FIRM Residential Mortgage Survey % of Homeowners Agreeing Completely That They Plan to Undertake Renovations of At Least $5,000 in the Next Year Renovation intentions by region

15. Source: Altus Group Economic Consulting based on Statistics Canada data Total Residential Renovation Spending, Canada, $Billions, Current Home renovations, an estimated $59 billion industry

16. HLOC

17. Main Purpose of New Borrowing with HELOCs % of Borrowers in Past Year Source: Altus Group/Ipsos-Reid, The FIRM Household Borrowing Survey

18. Methods of Borrowing to Finance Renovations % of Homeowners, 2009 * Respondents could choose more than 1 method Source: Altus Group/Ipsos-Reid, The FIRM Residential Mortgage Survey, December 2009

19. Main Reason for Refinancing a Mortgage to a Larger Amount As % of Mortgage Holders Who Refinanced to a Larger Amount in Previous 2 Years Source: Altus Group/Ipsos-Reid, The FIRM Residential Mortgage Survey

20. Questions?