New homebuyer satisfaction has increased significantly in 2009 in both the Calgary and Edmonton single-family home markets, according to the J.D. Power and Associates 2009 Alberta Single-Family New-Home Builder Customer Satisfaction Study released in association with The Alberta New Home Warranty Program.

Overall new homebuyer satisfaction in Calgary has increased to 678 on a 1,000-point scale in 2009, up 53 points from 2008. In Edmonton, satisfaction has increased to 648, up 36 points from 2008.

“Despite challenging economic conditions that have forced many builders to re-evaluate their business models during the past year, builders have succeeded in making meaningful improvements in homebuyer satisfaction,” says Marc Thibault, Real Estate Practice Leader at the Canadian office of J.D. Power and Associates. “In order to survive in this increasingly competitive market, builders need to continue focusing on making further improvements.”

Now in its second year, the study, based on responses from 5,274 buyers within the Province of Alberta who purchased newly built single family detached and semi-detached homes, measures new homebuyer satisfaction throughout the new-home purchase and early ownership experiences among builder members of The Alberta New Home Warranty Program. Customer satisfaction is measured across eight factors (in order of importance): service/warranty staff; sales process/staff; home readiness; construction/site team; workmanship/materials; price/value; physical design; and design process.

Among production builders closing 100 or more homes annually, Sterling Homes ranks highest in satisfying new homebuyers in both single-family home markets, with an overall satisfaction score of 761 in Calgary and 773 in Edmonton. Stepper Custom Homes (729) and Baywest Homes (727) follow in the Calgary rankings, while Daytona Homes (728) and Centrex Homes (708) follow in the Edmonton rankings.

The study finds the total number of construction problems identified by homebuyers has decreased to 18.6 problems per home, down 10 per cent from 20.6 problems per home in 2008. The readiness and quality of the home at possession, as well as the builder’s responsiveness to any outstanding concerns, are particularly influential in the homebuyer’s evaluation of their overall experience.

“Above all, homebuyers want to take possession of a defect-free home that satisfies all of the commitments from their builder,” says Thibault. “Most homebuyers will give their builders some latitude to resolve outstanding concerns, but rectifying problems needs to be done in an efficient and timely manner to minimize disruption.”

The study also finds that the percentage of homebuyers taking possession of their home on the promised date or earlier has increased onsiderably to 64 per cent, up from 47 per cent in 2008. NL

Calgary Market: Customer Satisfaction Index Rankings
(Based on a 1,000-point scale)

761    Sterling Homes
729    Stepper Custom Homes
727    Baywest Homes
726    Morrison Construction
721    Innovations by Jayman
709    Shane Homes
708    Carma Developers
707    Jayman MasterBUILT
706    The Cedarglen Group
700    Homes By Avi
691    Albi Homes
678    Calgary Market Average
671    Greenboro Estate Homes
668    Beattie Homes
655    Excel Homes
647    Landmark Homes
639    Centrex Homes
639    Trico Developments
631    Sabal Crafted Homes
623    Cardel Homes
592    Carolina Homes
Source: J.D. Power and Associates 2009 Alberta Multi-Family New-Home Builder Customer Satisfaction StudySM