Good Time to Hire a Remodeler!

Market Conditions
Market Conditions

02/23/2010


Market conditions for residential remodeling tumbled downward during the fourth quarter of 2009, according to the latest National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions index fell to 36.4 from 39.8 in the third quarter. The index of future indicators dropped to 31.4 from 38.7 in the previous quarter.

The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number below 50 indicates that more remodelers say market conditions are getting worse than report improving conditions. The RMI has been running below 50 since the final quarter of 2005.

"We're hearing many remodelers have laid off workers because they have no jobs coming in and are struggling to survive," said NAHB Remodelers Chairman Donna Shirey, CGR, CAPS, CGP, a remodeler from Issaquah, Wash. "Remodelers are pounding the pavement to find work and stay open, including taking on smaller jobs and competing with unqualified contractors."

The index for current remodeling market conditions slumped in the Northeast to 27.7 (from 33.7 in the third quarter), descended in the Midwest to 37.5 (from 43.2) and decreased in the West to 41.7 (from 47.3). In the South, the current index rose slightly to 40 (from 38.6). Major additions declined to 40 (from 41.9), and minor additions also fell to 40.7 (from 43.2). Maintenance and repair plunged to 27.1 (from 33.1).

Summary indices for future market indicators exhibit bleak expectations for the remodeling market. Calls for bids dropped to 37.5 (from 46.5 in the third quarter) and appointments for proposals slid to 34.4 (from 43.5). The backlog of jobs reduced to 31.9 (from 37.2) and the amount of work committed for the next three months fell to 21.9 (from 27.5).

"Although earlier quarters of 2009 showed tentative improvements for remodeling market conditions, remodelers have seen work fall backward at the end of the year," said NAHB Chief Economist David Crowe. "Like new home construction, remodelers are feeling the effects of consumers' uncertain job future, their level of confidence and unwillingness to spend their equity or savings. Competition from new home construction workers entering the remodeling market and unemployed contractors has stretched an already thin customer base."

Copyright © 2010 Realty Times. All Rights Reserved.

Thinking About Remodeling?

• 

  What Your Remodeling Contract Should Say

  Review your remodeling contract carefully and adjust it to make sure it protects you in terms of payments, work schedules, and project specifications. Read
• 

  5 Essential Questions to Ask Before Hiring a Contractor

  You’re ready to remodel but you want to make sure you get the best contractor for the job. Here’s what to ask the candidates before you decide. Read
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  When It Pays to Do It Yourself

  Doing home-improvement jobs yourself can be a smart way to save money, but choose the right DIY projects or you'll end up paying dearly. Read
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  Budget for a Remodel

  To calculate how much remodel you can afford, follow these four steps: Ballpark the cost, establish a spending limit, make a wish list, and set your priorities. Read
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  Should You Move or Improve?

  Whether to move or improve is a harder question to answer than it was a few years ago, but a few cost-benefit calculations can help you make the right decision. Read

Visit houselogic.com for more articles like this.

Copyright 2010 NATIONAL ASSOCIATION OF REALTORS

Pre-Listing Home Inspection

A pre-listing home inspection can uncover previously unknown problems - major and minor - allowing sellers the opportunity to make repairs or replacements as needed. By addressing these issues before the home goes on the market, you can list a home with confidence in its condition and will have a better chance of maximizing its value. Being aware of issues in advance will also allow for disclosure of problems when selling, which can result in cleaner offers and a smoother transaction for both parties.

Energy Efficency Made Easy

The average North American household spends $1500 annually on energy bills, a number that may go up as much as 50 percent this year. In the face of higher energy costs this winter, improving energy efficiency is more important than ever to homeowners. Here are some simple and inexpensive steps you can take to make your home more energy efficient. Why not start this weekend?
Furnace Care

Dirty furnace filters impede air flow and can also affect indoor air quality. Replace your furnace filters or clean them as needed, following the manufacturer's instructions. The furnace won't need to work as hard to deliver heat where it's needed. Also consider installing a programmable thermostat, which will lower the heat at night or when no one is home.

Bundle Up

If you have a tank-style water heater, wrap it in an insulation blanket to prevent needless energy loss.

Change a light bulb

Replace the five most frequently used lights in your home with LED or CFL light bulbs and save more than $60 each year in energy costs.

Power Down

Put electronics such as computers and televisions on a power strip and turn it off when you're not using those items. Consider "smart" power strips that can detect when an item is turned off but still drawing idle current; the strip will automatically shut off the current to selected outlets on the strip.

Seal Drafts

Seal holes, cracks and openings in your home to stop heat loss through the walls and ceiling.
Use Energy Star®Energy Star® products help you save energy and reduce greenhouse gas emissions. The Energy Star® label is on more than 40 different kinds of products for the home, including lighting, home electronics, heating and cooling equipment and appliances.

Fill it Up

Run washers and dryers at full capacity. They are most efficient when they are fully loaded.
Use Your DishwaterYou'll use up to 35 percent less water by doing a full load of dishes vs. washing them by hand - and use less energy for water heating, too.

Preparing your House for the Home Inspection

Preparing your House for the Home Inspection
1. Make sure all interior and exterior light fixtures work. If an outdoor fixture bulb
is out, the inspector has to note that the fixture does not operate correctly.
2. Provide access to the furnace, water heater and electrical panel. Also, the
inspector must be able to remove the electrical panel cover. If the panel is locked,
remove it.
3. Install a new furnace filter and vacuum the register. It will be looked at during
the inspection and be considered as a part of the overall condition of the furnace
or heat pump.
4. Ensure that windows operate smoothly. If some are stuck or painted shut, the
impression will be that many windows cannot open. Also, remove window
security screws or provide keys for window security locks.
5. Replace all damaged window screens, and make sure all operating windows have
screens.
6. Tighten all door knobs and tighten or repair all handrails. Also check to be sure
that all interior doors will latch to the strike plate.
7. Clear the way to the attic access panel or pull down, especially in a closet. This
means removing any clothing or other personal items in closets under access
panels. The inspector will enter every attic.
8. If you use your attic for storage, remove any items that will inhibit the inspector.
9. Be sure that there is a minimum of one smoke detector per floor. Smoke detectors
in each bedroom are also recommended as they are required per present standards.
10. Provide keys or unlock detached garages, sheds, and outbuildings.
11. Verify all utilities will be on at the time of inspection, and that gas pilots
(including fireplaces) are lit.
12. Remove or restrain pets on site.
13. Empty the washer and dryer so they can be tested. The dishwasher can be run
whether it is full or empty.
Selling a home can be a long and stressful run. When you get to the point of the
inspection, you’re nearing the finish line. Hopefully, the pointers mentioned above will
help you cross it with ease!

Preparing a home for sale

Preparing a home for sale requires more than an average cleaning. Most sellers understand that they must keep their house neat and tidy in order to attract potential buyers, but many may be overwhelmed or sidetracked when faced with seriously removing clutter. Beyond dusting and scrubbing, a de-cluttered home shows off its spaciousness and allows potential buyers to imagine themselves living there. Here are a few proven strategies to help homeowners take control of their space.

Empty it Out

Once you have identified your clutter hot spots it's time to pull everything out of that closet, shelving unit, or drawer and sort through what you really do and do not need. Start slowly and resist the urge to go into a frenzied clean. A successful purge requires time, commitment and motivation.

The Uselessness of Potential

Sometimes the hardest things to let go of are the things we've never used. Giving up on the idea of what that thing could be is an important part of letting it go. This is true for the things we've used but may never use again. A good rule of thumb: if you haven't used it in a year then you probably don't need it.

Give it a Home

Staying organized sometimes means finding a place for something and keeping it there. Key rings, newspaper racks, bill holders, and plastic storage containers can all help calm that "where did I put it?" frantic feeling.

Get it Out

Once you have made a pile of things to be cleared out the final step is making sure it gets out of your house! A yard sale can clear out the clutter and bring in some extra cash. If putting together a sale is too much work, donate your extra goods to your favorite local charity.

Kick the Habit

Once you've cleared out the clutter, it's important to adopt habits that prevent the problem from occurring again. Establish routines to help such as sorting mail over the recycle bin, always keeping a "give away" box in your hallway, and thinking twice about whether or not you really need something before you buy it.

Echo Boomers, The Key to Real Estate Recovery

The seeds of a housing recovery have already been planted, according to a report released recently. In fact, many of them were sown starting around 1979. According to an annual state of the nation’s housing from Harvard University’s Joint Center for Housing Studies, once the U.S. emerges from recession, strong demographic trends will restore health to the housing market. The key is echo boomers, the 75 million Americans born between 1979 and 1995. "There will be 5 million more echo boomers than there were boomers when they first started swelling housing markets," said Eric Belsky, executive director of the Joint Center. As a result, household growth during the next 10 years should range between 12.5 million and 14.8 million, according to the report. All those new households mean demand for many new housing units. "This is a powerful, powerful underpinning of future demand," said Belsky. Source: CNN/Money
Housing confidence is up amid increasing evidence that the market is turning around. The Adversity Index from MSNBC.com and Moody’s Economy.com reported signs of a turnaround in 33 of the nation’s metro areas. While that’s less than 10 percent of all metro areas, it’s still significant, says economist Andrew Gledhill of Economy.com. "There are signs out there that builders are growing modestly more confident about their prospects,” he says. Vallejo, Calif., where housing starts are up 440 percent compared to a year ago, leads the list of improving metros. In Longview, Tex., housing starts increased 263 percent. Others metro areas at the top of the list are Lawrence, Kan.; Ann Arbor, Mich.; Kokomo, Ind.; and Clarksville, Tenn. Housing prices are also increasing in 140 metro areas compared to a year ago. The greatest increase was in Elmira, N.Y., where prices were up 10 percent compared to a year ago. Source: MSNBC
Fannie Mae and Freddie Mac have received the green light from their regulator to refinance underwater homeowners whose loans are as high as 25% greater than the value of the home. The special refinance plan that Obama administration officials unveiled in February limited the option to loans 5% greater than the value of the home. The higher limits will allow more homeowners to strengthen their finances by taking advantage of lower rates," Federal Housing Finance Agency director James Lockhart said. Fannie Mae said it would accept delivery of the higher limits starting Sept. 1. A Freddie Mac spokesman said it would start accepting the loans "now." The GSE financing program is only available to borrowers with loans that are owned or guaranteed by Fannie and Freddie. They also have to be current on their payments. Source: National Mortgage News