Have you made any New Year remodeling resolutions? If you are wondering if now is a good time to consider remodeling or renovating your home, consider the following data from nahb.org:Existing homes sold in the Southern Region saw its strongest year in 2013
Existing home prices have seen an increase between 7.2% to 10% in 2013
Fixed rate interest rates on a 30 year mortgage have risen from 3.44% to 4.64% over the last year.
So, what does this mean in terms of whether you should remodel or tackle an addition project? This data is telling us that it is a good time to proceed with remodeling your home. Interest rates will continue to rise, so now is a good time to take advantage of lower rates. The fact that homes are selling and home prices are rising mean that your home is once again a good investment. Additionally, there has been an increase in the market for second homes. This indicator reveals a stabilization in primary homes which is again supported by the data from nahb. So, with so many positives at hand, the next question becomes how extensive should your remodeling project be?
I would base this on the amount of time that you think you will stay in your home. If you plan on selling within a year or two, I would stick to basics, like repairs, curb appeal projects, re-painting and freshening up. If, however, you plan on being in your home over five years, you can confidently tackle more extensive renovations. Time will afford you the enjoyment of your new space as well as increase your selling price when you decide to move. So, go for that new kitchen or bathroom remodel or the addition you have dreamed of!
Lastly, and reassuringly, the 2013 Cost vs. Value Report by Remodeling Magazine has compiled the following data: kitchen renovations re-coup 69% of the cost and bathroom remodels re-coup 58% of the cost at resale.
These are promising statistics for homeowners!
Happy New Year!!