Why some homeowners remodel rather than sell.

Knowing the reasons why homeowners choose to remodel can show how they influence today's housing market.
The National Association of Home Builders (NAHB) conducted a Remodeling Market Index (RMI)  for the first quarter of this years. The RMI survey asks remodelers to rate market demand for the remodeling market at the present time as compared to 3 months earlier.

In addition to the questions that provide the data needed to compute the RMI, the survey often also
includes a set of “special” questions on a topic of current interest to the housing industry.
Included a special question asking remodelers to rate their customer’s reasons such as desire/need for more space, wanting to avoid moving/buying etc., as a motivation for remodeling their home.

Remodelers where asked. Please rate how often your customers cite the reasons below as a motivation for remodeling their homes.

Desire for better/newer amenities 4.3
Need to repair/replace old components  4.2
Desire/need for more space 3.9
Want to avoid moving/buying another home 3.4
Desire to be able to age in place 3.3
Repairing a damaged property  2.8
Want to increase value of home as an investment 3.0
Energy efficiency/environmental concerns 2.4
Change in # of people living in the house 2.1
To accommodate multi-generational living 2.1
Getting a non-distressed property ready for resale 1.9
Getting ready for REO, short, or distressed sale 1.4
Other 2.0

Many homeowners contemplating raising home prices that will affect the purchase of a new home, increasing interest rates, and scarce inventory, remodeling an existing home is probably attracting more people. The R M I survey results suggest more homeowners are considering staying in their homes rather than shopping for a new home. So, it makes sense that they will consider making the changes on their current home to accommodate their needs.

As always I welcome your comments and questions concerning this or any other real estate related issue.

Thank you for being a reader of my blog.


Guillermo "Bill" Sanjurjo Realtor®
12955 SW 42 St Suite 2, Miami, FL 33175
Cell: 786-232-1400







Comments

Post a Comment

Your comments are always welcomed and appreciated. Thank you.

Popular posts from this blog

Challenges for Miami Homebuyers

Image
Navigating the New Real Estate Landscape:  Challenges for Miami Homebuyers Miami Homebuyers Facing Obstacles The real estate market in Miami has become increasingly challenging for homebuyers. Over the past few years, housing prices have skyrocketed, while mortgage interest rates have risen to unexpected levels. Unfortunately, wages haven’t kept pace with inflation, making it more difficult for many to afford their dream home. As if these challenges weren’t enough, new rules from the National Association of Realtors (NAR) are set to change how commissions are handled in real estate transactions, adding another layer of complexity for buyers. The Impact of the NAR Settlement Rules Beginning this Saturday, real estate agents listing homes on the Multiple Listing Service (MLS), a widely used database for agents, will no longer be allowed to advertise any compensation to buyer's agents. Previously, it was common for sellers to pay commissions to real estate agents on both sides of the ...
Read more

🏛️ **Victory for Property Owners Nationwide** Landlords may finally be entitled to compensation for losses during the CDC’s eviction moratorium. A major court ruling has reaffirmed that property rights can’t be suspended without just compensation. ✅ If you’re a housing provider who lost rental income during the moratorium (2020–2021), this decision could open the door for you to file a **takings claim** under the Fifth Amendment. 📩 DM me if you want help connecting with a qualified attorney or want to explore next steps. \

Image
🏛️ **Victory for Property Owners Nationwide** Landlords may finally be entitled to compensation for losses during the CDC’s eviction moratorium. A major court ruling has reaffirmed that property rights can’t be suspended without just compensation. ✅ If you’re a housing provider who lost rental income during the moratorium (2020–2021), this decision could open the door for you to file a **takings claim** under the Fifth Amendment. 📩 DM me if you want help connecting with a qualified attorney or want to explore next steps. \ http://dlvr.it/TM1RdR
Read more