With 2011 coming to an end many are uncertain about what 2012 might bring for homeowners and contractors. This is the time to look at Cost versus Value and how to improve your home. People have much more interest in protecting their investments and are remodeling on a need base. Due to the sluggish housing market it continues to push down the remodeling return investments. Since 2005 the cost-value ratio has dropped 29 points because of the high construction costs and the homeowners have given remodelers smaller budgets to work with. With the decreasing cost this results in a higher cost-value ratio. Almost half the people surveyed showed that homeowners believe it is a good time to remodel. In 2012 people will be more concerned with first impressions like window replacement, siding and doors. Improving the exterior of your home is cost effective and saves money on energy bills. Whereas, for the interior of the home people will be focusing on kitchen, basement and attic remodeling.
Curb appeal has become crucial due to the housing market. Homeowners are opting to stay put even though they need more space or want a new or better space. People are deciding to stay put because of the low housing prices, the hassle of getting a loan and the cost of moving. Sprucing up the exterior or interior is a great way to get a much needed face-lift at a good value. The high value of replacements is partly due to the relatively low cost. People are willing to spend more on one area of the project and less on another area. People who are remodeling the exterior of their home and kitchen are retaining the most value. Replacement projects are the highest in return rate in value verses cost, for example fiber cement siding is seeing a 78% return rate. Entry door replacement is seeing 68% which was the number 1 recommended work last year and this year in second place. While the attic, and kitchen remodeling is seeing a 60% average of return rate.
Remodeling your home is a huge investment and with the housing market continuing to push down remodel returns on investments it doesn’t help. However, the future of remodeling does look bright due to the fact that many homeowners are willing to start modifying their space. The more someone can add to the value of their home now the better. Also, with many homeowners over the age of 50 planning to remain in their homes through retirement this brings in a high demand for aging in place (universal design). This is another important reason for people to replace and remodel now if they plan on staying put longer. People are looking to reduce both operational and maintenance costs of their homes.
The attic has always been an interesting space and for many an unused space. However, for the year 2012 adding a bedroom or bathroom in the attic space will be on the rise. It is the least expensive way to add a bedroom or bathroom because it uses the space within the homes existing footprint. The kitchen remodeling is also on the rise, especially with people replacing cabinets, counter tops, hardware, appliances and painting.
So with this we are excited to see what 2012 will bring. Remodeling and replacing existing spaces will be on the rise. At Sweet Home Improvements we will do everything we can to give you the best quality with the best value for your home. Interior and Exterior projects will give you a revitalized space and home. People are very price-conscious right now and Sweet Home Improvements is on time, on budget guaranteed.