Let’s face it, the real estate market hasn’t been very favorable the last few years. Banks are tightening their credit standards and making it harder to find financing for new home purchases. Our economy has seen hard times as well and this has affected people’s income and budgets. In short, buying a home has never been harder. However, signs are pointing towards a resurgence in lending and a focus on home remodeling has come to the forefront of our housing market.
People get the “itch” to move when their home becomes routine or they outgrow it. In the past, when their home became impractical or an eyesore, instead of fixing the problem, people would move and “upgrade”. When banks were giving away loans, this wasn’t a problem. Nowadays though, families can’t find the financing to buy and upgrade. So now we are seeing a return to remodeling as the best option to build value in a home. The ticket prices for a remodel are far smaller, the credit qualification isn’t as rigorous, and people will be able to customize and create a new look they can be proud of.
According to the Harvard Joint Center for Housing Studies, the remodeling market is poised for a big rebound. Click here to view the website and report. Here is just a small part of the rationale from the JCHS:
“After languishing near the bottom for several years, the remodeling market finally appears to be pulling out of its prolonged downturn, and renewal of the nation’s housing stock is getting underway. Previously foreclosed properties are being rehabilitated. Sustainable home improvements are gaining in popularity. Older homeowners are retrofitting their homes to accommodate their future needs. And the future market potential is immense, as the emerging echo boom generation is projected to be the largest in our nation’s history.”
Families are realizing the investment in their home is an investment in their future. From energy efficiency upgrades to adding additional square footage, the money invested in a remodel adds value to the home’s appraisal and to the bottom line budget every family lives with. Homeowners should be very careful to select projects that add value and are cost effective. For instance, the initial cash outlay for upgrading to energy efficient windows is measurable and quantifiable. Windows add value and reduce energy consumption. Replacing the siding and adding square footage also offer greater return on a home’s value than say painting or new carpet.
Bottom line…it all comes down to what matters most to you…the consumer. If a new coat of paint or a deck makes you happy and content than do the research and find the best you can afford. If you shopping for energy efficiency products than some due diligence and research will help you go a long way to finding the right products and the right company to meet your needs.