According to the National Association of Homebuilders (NAHB), market conditions point to a higher demand for remodeling in the coming months. The NAHB produces their Remodeling Market Index which measures remodeling activity in homes: calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals. The RMI hit an all-time high of 60 in the last quarter of 2014. Note the trend in the graph below:
According to the NAHB Remodelers Chair, Paul Sullivan, “The upward trajectory of the RMI results over the past year has shown that home owners are ready, willing, and deciding to remodel.”
Housing inventory in many areas across the country is posing a challenge to potential home sellers who are concerned about taking advantage of the market and putting their home up for sale for fear they won’t be able to find another home. In some cases, homeowners are deciding to stay put and remodel as opposed to dipping their toes in the real estate market.
There are certainly pros and cons to staying in your current home and remodeling. If you love your neighborhood, you are happy about the amount of time it takes you to commute to work and local services, and your property will support a remodel, then a renovation may indeed be a good fit for you. Additionally, remodeling often brings value to a home depending on the improvements done. However remodeling cannot change commute time, lot size, proximity to services or recreation, so before undertaking a remodel, determine the whole picture about what is working with your home and not. Additionally, you should keep standard finishes for your area in mind as some people remodel their homes in such a way that there is no way to recoup the amount invested for the area.