Fewer homeowners may be starting complete kitchen remodels, but they're still replacing countertops and re-facing cabinets. They're also investing in improvements to make their homes more energy-efficient. Others are splurging on hot tubs and home theaters after realizing that they may be in their homes for some years to come-and want to make them as comfortable as possible. People are not going bigger and better, but improving what they have more cost effectively. For instance, instead of buying new furniture, they're repairing what they have. Or they're deep cleaning the carpet in lieu of replacing it. All for good reason: Money is tight, lending standards strict and in a sluggish housing market you might not recoup as much of your remodeling investment at resale.
Home improvement spending is expected to decline about 12% in 2009. Lower financing costs may be starting to stabilize the downturn in existing home sales, but they have not been enough to offset rising unemployment and falling consumer confidence and encourage homeowners to undertake major home improvement projects. It's much different than the days when home-equity lending was plentiful. Before doing anything, homeowners are carefully considering how they should spend their money. Those who do upgrade may be in for a bargain: Costs of materials, including lumber and copper, have dropped somewhat. The biggest price cut has been related to lower labor costs as surviving contractors struggle to compete.
The kitchen and bathroom are traditionally rooms where remodeling pays off. Some homeowners are still going through with full remodels these days, but they aren't the norm. Nationally, the volume of countertop project requests rose 39% in the first quarter of 2009, compared with the first quarter of 2008, while major kitchen remodels are down 19%. Service requests for bathroom remodels were down 10% in the first quarter of this year.
At a recent Kitchen/Bath Industry Show, affordable remodeling products included liquid stainless steel to refinish appliances and do-it-yourself backsplashes. Re-facing or painting cabinets and updating cabinet hardware have always been an option to remodel on a budget. For replacements, there are improved cabinet options in thermofoil. Consumers still gravitate toward granite countertops, but other less expensive-yet still attractive-countertop materials are available. For those considering resale values, it might be best to go for minor fix-ups. Doing all the high end may not get you the return you were looking for before, and you don't want to be the most expensive house on the block in this market.Replacement projects that improve curb appeal-including siding, windows and decks-are some of your best bets for recouping money at resale.
For Amy Hoak's full report, read Rethinking Remodeling: Homeowners Want More Bang for Their Home-Improvement Buck.
Contact us today: 214.923.0261 or email us: info@archwoodproperties.com
Comments(0)