With the low mortgage rates it appears many are choosing remodeling their home. BuildFax reports their Remodeling Index is up 29% year over year, and for the 22nd straight month to 138.6. The Midwest region saw a 10.8% increase.
“As mortgage rates hit record lows, it is apparent that millions of Americans are refinancing their homes and using some of their new monthly savings to reinvest in their homes with remodeling projects,” said Joe Emison, Vice President of Research and Development at BuildFax. “With remodeling activity growing at an estimated 9.5 percent in 2011 compared to 2010, this is one segment of the economy that is showing continued strength, even as other sectors struggle.” “As millions of Americans believe that they will not be able to secure a new home due to a variety of factors including tight credit, limited buyers and challenging job prospects, they are more and more turning to renovating and remodeling their current properties, sending remodeling activity to record levels,” said Joe Emison, Vice President of Research and Development at BuildFax. “However, this remodeling boom is leaving many of these properties under-insured, as the value of these renovations are often not being captured by the homeowners’ insurance companies.”
I am big fan of visuals and CalculatedRsk has a great chart below and further detail on BuildFax’s Remodeling Index report. Click here to read CalculatedRisks article
- Residential Remodeling Index at new high in September (calculatedriskblog.com)
- It’s Time to do some Home Remodeling, BuildFax home remodeling index soars (craigkamman.wordpress.com)