Remodeling Activity Reaches Record High
By Carla Hill 1
Many of today's homeowners find themselves unable or unwilling to enter the housing market. Some may have unsteady jobs or are upside down
in their home loans.
These conditions, however, don't mean that these homeowners don't have needs that need met. Some have outgrown their current home, have repairs that need made, or simply would love to have an updated kitchen or bath.
This explains the recent report from BuildFax that shows remodeling activity reached a record level high for the month of September.
Partly to thank for this rise in projects are the historically low interest rates, now under 4.0 percent for 30-year fixed rate mortgages. Many homeowners have sought out refinancing, meaning they now have lower monthly payments. This extra money can then be funneled into remodeling projects.
So, while it may not make sense for a homeowner to move, they can still make modifications to their current home which will make it more livable and comfortable. These projects even raise the home's value. "Mortgage rates continue to be near record lows, and as homeowners from coast to coast refinance, they are continuing to update their current home and invest in their properties," said Joe Emison, Vice President of Research and Development at BuildFax. "The data from BuildFax show that homeowners are not only doing important 'maintenance' projects, such as fixing their roof, but also taking on projects that add to the 'livability' of their homes by adding decks, remodeling their bathrooms and updating their kitchens. These are immediate fixes they will enjoy and that potential buyers look for."
The most popular projects come as no surprise. They are as follows.
- Roof (21.4%)
- Deck (7.9%)
- Bathroom (6.9%)
- Garage (6.1%)
- Kitchen (4.8%)
- Basement (2.9%)
- Office (1.7%)
- Sunroom (0.7%)
How much did the remodeling market improve in September? The latest Residential BuildFax Remodeling Index shows rates rose 34 percent yearover- year. September was up 2 percent over August of this year.
Regionally, the West rose 4.6 percent. The Midwest rose 4.9 percent month over month, the Northeast 2.9 percent, and the South rose 9 percent.
Interest rates are expected to remain low until 2013, according to the Federal Reserve, meaning this trend for fixing up and staying put could continue for the foreseeable future.
1 Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online
publication. She also is Producer for the real estate news channel, seen daily on
RealtyTimes.com and on video newsletters nationwide. She currently works out of the
Realty Times corporate office and studio in Dallas, TX. Any questions can be sent to
Carla at carladavis@realtytimes.com.
Reprinted with permission from the Realty Times November 17, 2011
Copyright 2011 Realty Times. All rights reserved. www.realtytimes.com
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