This is a great time to renovate or remodel. According to home improvement experts, your renovation will cost less today than if you were to wait until next year.
“Concrete doesn’t double in a month, but costs do continually tick up,” says Dan Bawden, chairman of the National Association of Home Builders Remodelers and owner and CEO of Legal Eagle Contractor in Houston. Bawden says renovating will never get cheaper than it is now.
Reason No. 1: Consumer confidence is improving
The economy is heading in the right direction, job growth is increasing, wages are improving, and people feel good about their future. Which makes them feel good about investing in home improvements.
“Remodeling decisions are made by families based upon their consumer confidence,” Bawden says. He calls today's confidence levels a “rising tide of optimism.”
Reason No. 2: Contractor and construction worker availability is decreasing
Busier contractors is good news for the economy, but the bad news is the busier those contractors get, the longer you might have to wait to begin a remodeling project.
Average wait period is six weeks to begin new jobs, partly due to skilled tradesmen availability. These workers are not getting younger and it is hard to find good new people with experience/recommendations.
Reason No. 3: Financing is still affordable
Many consumers rely on financing, utilizing equity in their homes. Home equity loan or line of credit because home prices are rising and loan rates are still low, but not much longer.
Loan rates are certainly on the rise. Borrowing costs are rising and so are home values. Homes for sale inventory is still very low, more buyers on the market, than homes, causing mounting demand to have bolstering home prices.
As the value of your home increases, so does your equity. And it's primarily the equity in your home—the difference between the fair market value of your home and what you owe—that supports a loan you can use to add that bathroom or replace the roof.
“Having more equity opens up more opportunity,” says Jonathan Smoke, chief economist of Realtor.com. “Since interest rates are low and equity is up, now would be a great time to look into applying for a home equity loan.”
Reason No. 4: Material costs will increase
No matter how low U.S. inflation might be, prices for building materials manufactured around the globe always seem to go up. Even though inflation may be low here, it could be rising in Italy, where the bathroom tile you love is manufactured. Or tariff pressures might make that slab of granite from Brazil more expensive.
The result is that building costs, labor, and insurance, always rise—perhaps not quickly, but inevitably. So wouldn't you rather remodel when it is cheaper?
Remodelng your home, not only showcases your to the right buyer, but also places your home in a higher selling pricing bracket, it increases the value of your home.
Premier Homes by Angela would love to assist you with determining which renovations will help increase the price of you home. Give us a call at (1844) 385-SOLD. The KEY to your real estate experience.