Americans Choosing to Renovate Rather Than Move

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Real Estate Technology with ZipperAgent

Americans Choosing to Renovate Rather Than Move

When housing markets are down it usually means that homeowners stay put and, more importantly, renovate.

A close up of a toyDescription generated with high confidence

 

Stocks in Home improvement stores have been on the rise recently. Home Depot stock has been up by as much as 15%, since March and Lowe’s stock by as much as 21.7 % since April.  While many factors go into the ups and downs of individual stock prices, some items from the housing market are clearly affecting the profits of home improvement stores.

One thing that can not be overlooked in the number of natural disasters that have occurred in this past year. Widespread forest fires, hurricanes, tornados, and even volcanic eruptions have all meant that people need the goods that home improvement stores have.  First homeowners prepare in advance of disasters by buying generators, batteries, plywood, and other supplies. Second, to rebuild in the aftermath of these calamities.

As Americans choose to hold onto homes, analysts expect them to renovate rather than sell.   Higher mortgage rates, lack of available inventory and rising property prices all play a part in this.

Rick Sharga, executive vice president of Carrington Mortgage Holdings, recently put it this way, "We're seeing people making home improvements because they've decided to stay in their house and they want to enjoy it.”

Many Americans seem likely to invest in home-improvement projects rather than move to new places.

 

 

The lack of housing inventory nationwide has meant the many Americans are choosing to invest in projects to improve their homes rather than to move or upgrade.  As home equity has risen many Americans are refinancing to renovate, and this is a good sign for home-improvement chains.

 

In addition, as mortgage rates go up, which seems very likely, people tend to improve their current homes and stay put rather than trading up.

 

 

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Many can not get as good of a mortgage buying a new home as the one they now own.

Sep 17, 2018 09:25 AM #1
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I read the other day that homeowners are sitting on trillions in equity and more are using that equity to enhance their existing home. Home prices are at record highs making it more sensible to improve instead of selling and trying to buy.

Sep 17, 2018 01:18 PM #2
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