Ready for some changes to your present home or want to improve the value of a rental property? If so, you’re not alone. According to a recent survey conducted by Lowe’s Home Improvement stores, the home improvement industry is booming. Homeowners spent an average of more than $3,700 on home improvement projects in the past year.
It probably won’t come as a surprise to most people, but the Lowe’s report found that 81% of homeowners consider their home to be a better long-term investment than the stock market.
Ask The Harrison Group for Advice
Your Texas REALTOR® can also be a great resource when considering remodeling projects – whether it’s directing you to the perfect fixer-upper house when you’re buying, or offering advice and information once you’re in the house. Some people even consult with their REALTOR® on what improvements they should make to help sell their homes later – a great idea, since your REALTOR® is an expert at re-sale features.
The most recent study – conducted in 2003 – found that overall values are definitely up from 2002. Following are the three key findings:
- Despite the fact that growth in spending on home improvements has been slowing nationally for most of 2003, cost recovery rates accelerated during the year. Across all projects covered in this study, the average cost recouped was 86.4%. For virtually every project, that’s higher than 2002’s recouped costs, reflecting improvement in the economy and in people’s feeling that incomes will continue to increase over the next few years.
- Lower-priced projects show higher cost-recovery rates than higher-priced jobs. During a recession and in the early stages of a recovery, it’s typical that the upper end of the remodeling market suffers more than the lower. Higher-priced projects tend to be discretionary, and households often wait for the economy to improve to undertake these expenditures.
- Markets with high house-price appreciation report higher-than-average cost recovery. With more equity to undertake improvements and wanting to protect their housing investment, homeowners are more inclined to spend on their home.
Article provided by www.texasrealestate.com
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