Home Remodeling Showing Signs of Recovery, Future Looks Bright
The bad news, the most recent semi-annual RemodelorMove.com Remodeling Permit Activity Report of 5,000 homeowners considering remodeling shows a 20 percent decline in the number of remodeling permits issued during the first quarter of 2009, compared to the same quarter in 2008. The first bright spot for the home remodeling industry comes from the first quarter 2009 report, which shows an increase of five percent in the number of homeowners who stated they will probably remodel in the next 12 months.
This is the first increase reported in this benchmark measure of future remodeling plans since 2007, when more than 90 percent of the homeowners who were thinking about remodeling reported they would probably remodel in the next 12 months. Since 2007, this measure of homeowner sentiment has fallen steadily, first when home prices leveled off, then when home prices began to decline, and again following the start of the current recession.
The second bright spot for the home remodeling industry is that the cost to remodel is now 20 percent less than it was in 2006, the result of savings from a variety of sources, including the economic stimulus package, reductions in prices for many materials and home products, and lower bids from contractors as they compete to keep their work crews busy. Details on these savings opportunities are available at www.remodelormove.com.
Other findings from the First Quarter 2009 Remodeling Sentiment Report include:
- 82% of respondents said the cost to remodel is their biggest concern.
- 12% of respondents planned to use economical materials when they remodel, while 12% plan to use expensive materials, and the remaining 76 percent will use standard-priced materials.
- 89% of respondents are changing their remodeling plans because of the current economic recession.
When ready for remodeling work to begin, most homeowners will look to their kitchen and bathrooms to make improvements. According to research conducted by the National Association of REALTORS, more than 50 percent of homebuyers will remodel their kitchen or bathroom within the first three months of purchase – and that that will be the first project on the remodel list.
"The first thing homeowners should consider are the goals for any major remodel project," said Lynn Schrage, marketing manager for Chicago's The KOHLER Store. "Consider your lifestyle now, but don't forget to think about your needs in 5 to 10 years. The kitchen and bathroom are the most frequently used rooms in the home. Careful planning is essential."
Schrage points out that considerations should include style, function, and how a family will be using the space. She added that a design professional can help you manage the planning process and selections, and assign a budget estimate. "Make sure product selections, project details, a timeline, and construction costs are outlined in writing at the start of the project and things should go smoothly.
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