By George DeMare, Vice President Business Development
The current real estate market can be a little…whacky.
Home prices are surging, and inventory is tight. A slowdown in new construction and a short supply of existing homes for sale have pushed housing prices so high; buyers are finding themselves either sitting out the sale process or locked in bidding wars.
A lean housing market is great news for homeowners who have been looking to remodel! If you are on the fence about renovating your home, 2018 is the year!
The economy is booming! Consumer confidence is high, unemployment is low, and incomes are growing which hopefully means you have more spendable revenue.
There is a good chance your home equity has increased over the past few years. The remodeling market is expected to grow seven percent this year due to homeowners staying in their current homes longer.
Building loan interest rates are low
Interest rates for home equity lines of credit are historically low. This financing option offers a flexible way of getting money to pay for home improvements. Homeowners looking to fix up their house should take advantage of the current low-interest rates as they are expected to rise again later this year.
It could be cheaper than buying a new home
If you already own a home, remodeling could be a lot cheaper than buying a new one. Consider how much equity you have in your house, your current mortgage rate, and if renovating is feasible. Growing home prices are causing many potential buyers to be priced out of their markets.
Costs will increase
The construction industry is currently facing a major shortage of skilled laborers and rising costs of materials. This high demand is translating into higher pay scales with the cost being passed on to the consumer. Experts predict material costs will rise five percent this year. The lack of workers and the price of materials is expected to get worse over time so holding off on a project will cost more next year.