{"id":3249,"date":"2017-11-30T10:41:26","date_gmt":"2017-11-30T14:41:26","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=3249"},"modified":"2017-12-01T08:07:15","modified_gmt":"2017-12-01T12:07:15","slug":"home-remodeling-sell-stay","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2017\/11\/30\/home-remodeling-sell-stay\/","title":{"rendered":"Home remodeling to stay or sell"},"content":{"rendered":"
\"home<\/a>
Home remodeling (infographic from census.gov)<\/figcaption><\/figure>\n

The Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University predicts expanded growth of home remodeling and renovations through most of 2018.\u00a0 That\u2019s a good indication that the economy has picked up and the many homes that fell in disrepair<\/a> after the Great recession are getting the much-needed attention to extend their functionality.<\/p>\n

It wasn\u2019t that long ago when Kermit Baker wrote about a crisis of the declining housing stock<\/a> due to extensive deferred maintenance (The Return of Substandard <\/em>Housing; housingperspectives.blogspot.com; February 27, 2013).\u00a0 The article written for the Joint Center for Housing Studies of Harvard University highlighted the considerable reduction of home maintenance as measured by home owner \u201cmaintenance spending\u201d during the Great Recession.\u00a0 This seemed to be a low point for the country\u2019s housing stock.\u00a0 The 28 percent decrease in maintenance spending between 2007 and 2011 essentially nullified the renovation spending during the housing boom.<\/p>\n

\"Home<\/a>
Home remodeling activity Q3-2017 (graph from jchs.harvard.edu)<\/figcaption><\/figure>\n

The Remodeling Futures Program releases a quarterly data for Leading Indicator of Remodeling Activity<\/a> (LIRA). The LIRA is a \u201ca short-term outlook of national home improvement and repair spending to owner-occupied homes.\u201d\u00a0 The most recent data<\/a> indicates that home remodeling and repair spending will escalate from the fourth quarter of 2017 into the third quarter of 2018, estimating an increase from 6.3 percent to 7.7 percent.\u00a0 The significant increase in home improvement spending is attributed to a strengthening economy, home equity gains, and low home re-sale inventory.\u00a0 Chris Herbert, Managing Director of the Joint Center for Housing Studies is optimistic about maintenance spending.\u00a0 Herbert said:<\/p>\n

\n

“Recent strengthening of the US economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity…Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.<\/strong>“<\/p>\n<\/blockquote>\n

The current LIRA data doesn\u2019t include the effects of recent hurricanes.\u00a0 It is expected that those recent disasters<\/a> will significantly increase the anticipated projected maintenance spending.<\/p>\n

Home owners really have no choice but to spend on renovations, remodeling and repairs, especially if they are planning on selling their home.\u00a0 Most home buyers want a turnkey home, where the home is fresh and new and offers minimal maintenance during the first year of ownership.\u00a0 The desire for a turnkey home is probably why new home sales are at a ten-year high.\u00a0 This week, the US Census Bureau (census.gov) released new home sale data<\/a> that indicates a month-over-month increase of 6.2 percent, and a year-over-year increase of 18.7 percent!\u00a0 To compete with other re-sales and new homes, home sellers must factor in the cost of home renovations.<\/p>\n

There are many home owners who still can\u2019t afford to move.\u00a0 The fact that many are still priced out of the move-up market has been a major issue holding back the housing market.\u00a0 This phenomenon is also responsible for continued low home re-sale inventories.\u00a0 As a result, many home owners are staying in their homes much longer than anticipated.\u00a0 The National Association of Realtors indicated in the Home Buyer and Seller Generational Trends Report 2017<\/em><\/a> (nar.realtor) that home buyers anticipate staying in a home about twelve years.\u00a0 This is an increase of about five years compared to a decade ago.<\/p>\n

Although many home owners still can’t move, they are deciding to do home \u201cmake overs.\u201d\u00a0 The make overs will give their homes a fresh look, that typically include new floors and paint schemes.\u00a0 Additionally, kitchen and bathroom renovations modernize the home.<\/a>\u00a0 However, home owners needing more room, are opting to expand their homes to give them larger spaces.\u00a0 Some home owners are going beyond the basics and creating different spaces by moving walls.<\/p>\n

Regardless of your reasons for home renovations and repairs, home improvement experts recommend to create a budget and stick to it<\/a>, and always hire licensed contractors<\/a>.<\/p>\n

Copyright\u00a9 Dan Krell
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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University predicts expanded growth of home remodeling and renovations through most of 2018.\u00a0 That\u2019s a good indication that the economy has picked up and the many homes that fell in disrepair after the Great recession are getting the much-needed attention to extend … <\/p>\n

Continue reading “Home remodeling to stay or sell”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[113,178,419,35,478,173,382,406,13,377,421],"tags":[855,887,926,811,939,648,885,912,797,508],"class_list":["post-3249","post","type-post","status-publish","format-standard","hentry","category-home-improvement","category-home-maintenance","category-home-owner","category-home-remodeling","category-home-renovation","category-home-repairs","category-home-seller","category-homeowner","category-real-estate","category-renovation","category-repairs","tag-home-improvement","tag-home-maintenance","tag-home-owner","tag-home-remodeling","tag-home-renovation","tag-home-repair","tag-home-repairs","tag-home-seller","tag-real-estate","tag-remodel"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-Qp","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=3249"}],"version-history":[{"count":8,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3249\/revisions"}],"predecessor-version":[{"id":3258,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3249\/revisions\/3258"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=3249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=3249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=3249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}