Connect

Find us on...

Dashboard

Login using...

New Search X

Are Homeowners Renovating To Sell Or To Stay?

Posted by David E. DeChant on Tuesday, November 13th, 2018 at 8:58am.

Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up
  2. Inventory of homes available for sale on the market has dropped

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisorhomeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

 

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

Bottom Line

If you are one of the many homeowners who is thinking about remodeling instead of selling, sit down with a local real estate professional who can help you make the right decision for you based on the demand for your house in today’s market.

 

Source: https://www.keepingcurrentmatters.com/2018/11/13/are-homeowners-renovating-to-sell-or-to-stay/ 

3 Responses to "Are Homeowners Renovating To Sell Or To Stay?"

Home Sellers In Q3 Netted $61K At Resale wrote: [...]Links

Are Homeowners Renovating To Sell Or To Stay?
How To Honor A Veteran Today And Everyday
VA Home Loans By The Numbers[...]

Posted on Wednesday, November 14th, 2018 at 9:25am.

Wage Increases Make Home Buying More Affordable wrote: [...]Links

Home Sellers In Q3 Netted $61K At Resale
Are Homeowners Renovating To Sell Or To Stay?
How To Honor A Veteran Today And Everyday




Tags

[...]

Posted on Thursday, November 15th, 2018 at 1:19pm.

The Cost Of Renting Vs. Buying A Home [INFOGRAPHIC] wrote: [...]Make Home Buying More Affordable
Home Sellers In Q3 Netted $61K At Resale
Are Homeowners Renovating To Sell Or To Stay?




Tags

Buying Myths (26)
First Time Home Buyers (142)
[...]

Posted on Friday, November 16th, 2018 at 10:19am.

Leave a Comment

Get Pre-Approved For a Mortgage 

 

 

Learn About Becoming a Redco Agent

Find us on FACEBOOK