Thursday, August 5, 2010

Remodeling Projects Decrease

The latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI) indicates that in the second quarter of 2010, declines were seen in many key markets.  NAHB Remodelers Chairman Donna Shirey said, "Remodelers are suffering from weak consumer confidence and constricted credit lines. Homeowners are delaying remodeling projects because of economic uncertainty."

The regions that fared the worst were the Northeast and the South.

The homeowners who are choosing to remodel instead of trade up are most commonly working on the bathroom - 61%, and kitchen - 52%.

An interesting change in the industry is the rise of handy"man" services.  The NAHB survey found, "None of the professional remodelers responding to the survey reported that it was common for their companies to perform handyman services in 2004, while 33% of remodelers were regularly providing handyman work in the first half of 2010."

In summation, NAHB Chief Economist David Crowe predicts, "While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year.  For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."

If you aren't sure if a remodeling project will increase the value of your home when you decide to sell, call or email me.  With my construction background and knowledge of our Mercer County NJ real estate sales, I can help you decide.

Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist

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