NAHB’s quarterly remodeling index, rose to the highest level since 2006 for the January to March quarter.
A lot of evidence indicates the growth will be sustained.
During the Housing Bubble, there was a lot of remodeling at the top because many people were buying homes, and they naturally want to put their personal touches on those homes.
We also saw a lot of remodeling during the housing boom because so many borrowers took all that bloated equity out of their homes to pay for new kitchens and bathrooms, swimming pools and “man caves.”
Remodeling plummeted during the housing crash because of negative equity, lack of home buying and zero confidence in housing as an investment. Not to mention that nobody wanted to spend a dime of whatever cash they had on anything.
So now as we bump along the bottom and fear a potential double dip, why would remodeling improve?
Easy, because if you can’t buy a home, and you can’t sell your home, and you’re getting a little tiny bit more confident about the economy, your only choice is to make your current home better.
“Homeowners are still slow to commit to remodeling due to feeling uncertain about the economic recovery and difficulty obtaining loans,” says NAHB Remodelers Chairman Bob Peterson.
Remodelers reported the top reasons prospective customers are holding back:
- Lost equity in home.
- Uncertainty about economic recovery.
- Reluctance to invest in home when not sure home will hold its value.
- Negative media stories making customers more cautious.
- Inaccurate appraisals are making financing more difficult.
Bonded Builders Warranty Group offers Remodeling Warranties to help builders manage risk and give homeowners peace of mind.
Our Remodeling Warranty offers a competitive edge by generating customer confidence. This warranty has a menu of choices to meet your needs, or you can combine warranties for each job.
- First year materials and workmanship.
- First year electrical, plumbing and mechanical systems warranty.
- Five- or 10-year major structural defect coverage.
- Extended Appliance and Systems warranties available.
For more information about the Bonded Builders Remodeling Warranty, contact your locacl Sales and Marketing Director. You can find a list of them by clicking here.Share