Remodeling Rising: More Home Owners Spruce Up Properties
Daily Real Estate News, Friday July 25, 2014
An index that measures the state of the remodeling market rose three points in the second quarter of this year, regaining the momentum started in 2013 but lost in the first quarter of this year, according to the National Association of Home Builders’ Remodeling Market Index. It marked the fifth consecutive quarter for the index to have a reading over 50. Any reading above 50 indicates more remodelers are reporting that market activity is higher than lower.
"With many home owners on better financial footing, home remodeling has become more popular," says Paul Sullivan, NAHB’s Remodelers chair. "The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market."
Remodeling Bug Grows?
Remodeling jobs valued at $25,000 or more rebounded to 54 on the index, which is the same level at the end of 2013. Smaller remodeling jobs and maintenance and repair jobs were at reading s of 56 and 58, respectively, on the index. Remodelers reported more favorable conditions on calls for bids, amount of work committed for the next three months, backlog of jobs, and appointments for proposals.
"The recent improvement in the job market has helped restore remodelers' confidence after a dip in the first quarter that was probably in part weather-related,” says David Crowe, NAHB’s chief economist. “As home owners feel more secure about their economic situation, they become more willing to undertake remodeling projects – especially larger, discretionary projects. In addition, fewer new home builders are looking to remodeling as a way supplement their revenue, and this has somewhat reduced competition for remodeling projects."
A recent realtor.com® survey of more than 1,500 home owners showed that 67 percent of consumers say they’re planning a home renovation within the next six months, and they’re planning to spend more money on their renovations than last year. The most common budget range for home improvements was between $2,001 and $5,000 and the most popular areas to renovate were the kitchen, bathrooms, backyards or patios, and the exterior of the home, according to realtor.com®’s Home Improvement Survey.