Home Improvements on the Rise
Monday, February 15th, 2010An emerging trend of the real estate downturn shows a significant spike in the home improvement industry. According to the National Association of Home Builders (NAHB) Remodeling Index showed big upturns in the consumer confidence.
Rose Quint, an economist for NAHB, “The phones are ringing more. That has led to a nice increase in the future indicator.” The index still is under the threshold 50-point barrier, which is the index’s dividing line between pessimism and confidence.
With prospects realizing that current values are will below the values achieved during the real estate boom, many homeowners are opting to stay put. These owners have decided to invest in upgrades and take advantage of bigger lots by adding space and new upgrades in the competitive home improvement marketplace.
Additionally, many homeowners are capitalizing on new government energy tax incentives to improve and economize on home energy. Marvin Windows and Doors reports that replacement windows are outselling new construction windows for the first time.
The revitalized nesting population is typical for down markets. But with more than 28% of homeowners in foreclosure or late on payments, owners know many homes are underwater, with more owed on the home than its current value. Rather than take the loss, owners are improving and waiting for an upturn.
Home improvement sales volume is up more than 20% during the first three quarters of 2009m compare to the first three quarters of 2008. The key ingredient for new home improvements is a desire to increase living space and add at-home office space.
Depending on the area. today’s home improvement costs can range from $100 - $200 per square foot. When considering their options, homeowners are leaning toward remaining ion their neighborhood, in the same school district and surrounded by known friends. Demand is expected to continue to increase through 2010.
