Home improvement spending in the United States is expected to increase this year. This is because the economy is getting better and the housing market is slowly recovering. If the growth continues to increase through mid 2012, home improvements will be expected to end on a good note by the year end. During the last few months, there have been an increasing number of sales of existing homes which may result in home improvement projects as well. This should help local interior designers find more work. With lending institutions and banks becoming tight in mortgage loans, financing will be easier for homeowners who would want to undergo remodeling.
Studies predict that spending for home improvements will achieve $113.6 billion after the middle of 2012 which is, in reality, down by 0.2 percent against the 3rd quarter of last year. Home remodeling spending this quarter is up by 5 percent against the first quarter of last year. Although the expectations on home improvements is getting better, it all depends on economy improvement and the housing market.
Many people opt for home improvement to increase the value of their home. Remodeling is a good option for homeowners to add value to their property. Below are some guidelines to consider:
- the first thing that a homeowner needs to consider to add value to their home is to improve the curb appeal of the house. This include the garden, lawn, exteriors and the whole outdoor area of the house, including the roof and landscaping.
- Freshen up the color for the exterior and the interior of the house.
- Focus on the main rooms such as the bathroom and the kitchen. Add furniture or appliances if necessary.
- Clean and organize your garage.
- Consider putting fireplace if you don’t have one.
- Bring the laundry area up from your basement.
- Avoid adding or repairing windows because they do not add value to your house unless they are seriously damaged. Just clean your existing.
- Do not bother putting in a swimming pool if you don’t already have one; some people don’t like having pools because of the maintenance.
- Spending on furniture and the decor inside the home is good, but you may opt to prioritize other, more important things.
- Laying in new materials for your flooring may help a bit, but may not increase your resale value as much as you may think.
Home sales increased and reached their highest in almost a year this past December. The increase in sales compliments an improved housing market. Analysts have said that the sales will remain low for a few more years until it goes back to a good level. There were a three straight months of an increase in home sales last year, and signs point to that continuing into this year. Prices are low, and mortgage rates are even lower. Home builders are hopeful, because more families will have an opportunity to buy a home this year. Home remodeling even increased in the third quarter of last year.
It is certainly true that home sales are low overall, compared to 5 years ago, and will continue to be low for some time. Still, sales of previously owned houses rose to 5% in December – its highest level since January 2011. Corresponding to this great news is that the job market also has improved. It goes without saying that this is vital for a housing market rebound. In December, the unemployment rate fell to its lowest in almost three years. Layoffs have started going down, while hiring is on the rise. This, in turn, is helping consumer confidence. Home sales may continue to rise as everything is falling into place. The average sales price of previously owned houses went up from November to December by 0.3 percent.
Sales across the U.S. are increasing, and it was an increase of 10 percent in the Northeast, 8.3% in the Midwest, and 2.9% and 2.6% in South and West respectively. The number of unsold homes is going down, and they can be sold quickly based on last month’s selling pace. Home sales are increasing at a time when other economic standards are also going up. This signals an improving health to our economy. Mortgage rates are at their lowest, and home construction is increasing. The housing market needs a few more years to recover, but it is looking good right now. Here’s to hoping for the best.
A home’s curb appeal is the total look of your house from the outside as viewed by other people. It is the first impression a house gives during the first visit. The aspects included in this first look are the landscape, lights, paint colors, architectural structures, and house design. This is not limited to the front view of the house, but also to the sides and back as well. For home buyers, good curb appeal is one most important factors that get them interested in your property. If the curb appeal is good, it can pique the buyer’s interest.
Your home’s curb appeal can be setup by remembering some major guidelines: The design of your house is an important part of curb appeal. Install a good lighting scheme; an interested buyer may want to see the look of the house at night with the lights on. They might also take a look at the garage, garden and patio during nighttime. Whatever lights you are going to install, make sure it balances everything, including making sure that all spaces are well lit. The railings on the porch should be in good condition, and be safe for use. Check for any broken parts, like a nail that is showing, unfastened screws, paint that is wearing off or small holes in the wall. Clean hallways, pathways, sidewalks, the driveway and everything that is visible for potential buyers and guests. Clean windows, walls, the roof and gutters. Paint may wear off as time goes by. Painting your house anew, exterior and interior, will freshen up the look of your home.
A well-maintained lawn and garden shows that the owners of the house are neat and clean. It shows pride in possessing the home. A garden is also a part of the house; you should decorate it as you would inside your house. Trim grown plants and trees. Mow the grass and trim the bushes. Keep garden tools and equipment neatly put away and out of sight. Although it seems unimportant, the house number is also important, but is often neglected. Make sure that the house number is visible from the outside. To ensure that your house has the total wow factor to prospective buyers, you may opt to hire a professional to take care of everything regarding your home’s curb appeal.
The housing market in 2012 will vary widely from neighborhood to neighborhood with some doing much better and some doing much worse than the overall average. Thus, it’s hard to make general statements about housing across the country in 2012.
Some housing experts say that the yearly forecast shows continued growth for the market. This is especially true in the most desirable neighborhoods. Price stability also looks to be more stable. Condominiums and apartments will surge even with the construction and development of new subdivisions. They say that this could be the best year both for sellers and buyers since 2006; again, depending on the neighborhood. Housing has been flat for many years, but it will improve as developers begin to start new projects. Foreclosures will continue to be a problem, and will still affect many markets especially in the West. After a brief slowdown with foreclosure processing, they have begun to pick up once again. This looks to be the one issue that could potentially derail any uptick in housing.
However, some of the positive signs that the country’s housing market is improving are as follows: the jobs market is looking up, housing sales and construction have been showing recent signs of improvement, business sales and profits are rising, and many consumers are in better financial shape today than they’ve been in the past few years. The growth of the housing market is forecasted due in large part to the increasing number of newly-built homes, a slowly rebounding job market, and the rapid growth of population that needs housing. The latter being one of the reasons rental properties in high demand. Good news for the housing is that job layoffs have been steadily declining along with the unemployment rate. Most real estate analysts agree that the jobs and housing markets go hand in hand. As more people find work, they are better able to qualify for a mortgage, and are more likely to buy a home.
Home construction has finally begun a gradual comeback and should add to the nation’s economic growth, a turning point in the recovery from the recession that much of the world has suffered.
