Renovate in a down economy
Buy low sell high reasonates and is applicable to home renovation in the environment today. It is a well known fact that the market is seasonal with a typical inventory reaching a high point during late summer however falling in the colder months of the year.
According to Motovo Real Estate during the final month of 2012 inventory dropped by 9,551 homes. See chart below.
Home prices in 2012 climbed upwards and the trend seems to be that homeowners are hesitant to sell their homes:
- They are under the notion that prices will continue to increase
- Increased investor demand
- Decreased bank foreclosures
So what does this mean to those whom are seeking to renovate their homes?
Right now is the time to get take advantage of a marginal economy and excellent rates regarding home improvement and repair. Contractors have suffered the past 6 years as the housing bubble decreased the amount of opportunity to build and homeowners have been to skeptical to spend thousands of dollars in a volitile environment.
Just as the market is seasonal so are the prices regarding home renovation. If you are considering custom kitchen designs, room addition or second story remodeling it is smart to be ahead of the curve and lock in excellent rates while you can. Soon with a low inventory Room Addition Contractors will be in demand to add to existing structures.
Other incentives to renovate now
According to usnews.com builder confidence was up to a five year peak last August. Building Permits rose 7% in July so this is indicative that the home renovation industry is starting forward progression. So in conclusion get on the ball and contact a general contractor soon if your pondering any home remodeling project.
Any thoughts feel free to shoot me a line!