Home Re-Modeling Expected to remain Hot in 2021

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Real Estate Agent with HomeSmart Real Estate BR632450000

Put in those new windos, flooring, bathrooms and kitchens, it seems like everyone else is doing it too. After a year of Sheltering In Place homeowners are saying, "We are here all of the time with our new Big Big Screen TV, we mind as well make the rest of the house nice also"

 

Clare Trapssao reported on April 15, 2021 in Realtor.com that Remodeling Is Expected To Remain Hot, Even as the Pandemic Eases, as follows:

"The demand for home remodels is expected to remain strong—even as the COVID-19 pandemic begins to ease as vaccinations rise and people are no longer trapped inside their abodes obsessing over all the flaws.

Renovation companies will stay busy this year and into next as homeowners finally get around to that big kitchen remodel or adding a home office, predict renovation experts. Homeowners are anticipated to spend about 4.8% more by the first quarter of 2022, according to the Leading Indicator of Remodeling Activity. The indicator, from Harvard University’s Joint Center for Housing Studies, offers a short-term outlook for home improvement spending. The latest projection is up from around 3% last year, when many homeowners may have felt uncomfortable allowing crews inside their homes due to the pandemic.

However, the indicator expects there will be fewer do-it-yourself projects in the year ahead as more people get vaccinated and feel comfortable socializing, traveling—and getting out of the house and leaving the work to the professionals.

Kitchen Remodel

Kitchen Remodel (Photo: Fuchilas-Pixabay)


“With the pandemic keeping folks at home for so much more time, there was this intense focus on doing work on their homes,” says Abbe Will, a research associate at Harvard’s Joint Center. “We think that will continue this year, [but] with fewer DIY projects and more larger, discretionary projects and the ones that were deferred from last year.”

Many homeowners also have the money now to do these projects because of the pandemic. Those who remained employed over the past year may not have gone out as much or traveled, so they were able to put some of that money into their savings. Many received stimulus checks from the government. They were also able to tap into their home equity, as home values rose sharply over the past year as buyers rushed into the market.

“They’re using those funds to reinvest in their homes where they’re spending disproportionate amounts of time,” says Will. “Homeowners are still trying to make their homes fit their needs. If working from home becomes more of the norm, homeowners [will] make those spaces in their homes, potentially [with] home additions to accommodate that.”

Home sellers and those who successfully beat out the competition to become new homeowners are also likely to seek out remodeling and design firms. Sellers want to get their properties into tiptop shape, while new owners spend about 30% on renovations within their first three years of homeownership compared with other owners, according to the Joint Center.

Home Updates

But homeowners jonesing for their desired improvements may have to exercise patience. Backlogs for renovation and design companies have already doubled to more than two months in the second quarter of this year compared with the same quarter last year, according to the Houzz Renovation Barometer. The design and remodeling site found the construction wait increased to about 9.3 weeks in the second quarter of 2021.

It may be particularly tough to have a pool installed as searches for pool and spa professionals last summer were up three times from the previous one. Demand for landscape, deck and patio professionals more than doubled. However, fewer folks sought out creating more open-concept floor plans as the pandemic has dragged on and families spent more time at home together."

 

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Posted by

Jeffrey Masich, Associate Broker, REALTOR®, MBA, GRI, BS Accounting

HomeSmart

Scottsdale, Arizona

JeffMasich@ArizonaHomesLand.com

http://ArizonaHomesLand.com

480-242-6500

 

 

Comments (5)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Jeff, many homeowners prefer to remodel than put their homes in the market. Very good detailed report on home remodeling.

May 01, 2021 10:54 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Jeff,

I always enjoy remodeling and the creative process involved.  Even if I am not, I like looking at the latest and greatest.  Have a wonderful Sunday.  A

May 01, 2021 03:54 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff funny you should write this post in 2020 we fixed our deck and repainted it. We fixed in front of  our house the side doors and fence. We have been discussing fixing the small bathroom as well.... and no discussion of wanting to travel  or go on vacation:))Endre

May 01, 2021 09:06 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Roger that Endre Barath, Jr. but did you install "The Wall" TV....there is still something to do. Just saying.....Jeff 😎

May 01, 2021 09:36 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff, originally yes the plan was to do a Wall TV in my home/office it was on the things to do for about four years... then I got tired of what was on TV and it has been over a year since we had the TV on:)) so that project became tabled:)))) Endre

May 01, 2021 09:41 PM