Home Remodeling is Back

With home values returning to levels from before the recession and many going higher, people again have equity in their homes. That’s enabling them to take out second mortgages. Much of that money is going into remodeling projects of the houses they plan to stay in. Kitchens, baths, and even garages are seeing upgrades. Some estimates are for up to $260 billion in upgrades over the next year. 38 million borrowers now have at least 20 percent equity in their homes, according to Black Knight Financial Services. Confidence is also key. When people feel better about their home’s value, they are more apt to invest in it. Most people have no intention of moving to another home unless they have to for employment, health, or other reasons. Instead, they want to improve the castle they currently own and live in. Service requests on HomeAdvisor for multiroom remodels are up 67 percent from a year ago. Remodeling and home improvements are now expected to exceed new home construction in the next few years. Still, as home sales pickup those can be expected to fuel the remodeling market. This will happen both in the preparation to sell along with new owners wanting to make their own changes.


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