Tuesday, December 19, 2006

The Market Giveth and the Market Taketh Away

I’ve discussed time and time again how the ‘doom and gloom’ perception of the so-called housing bust is way too simplified to be true. In all states of the market flux, there are investments to be made, and declining profits in one sector often mean high times in another.

Take for example the Renovation Boom that has come at the heels of low housing sales. Many homeowners who considered selling before the ‘bust’ are now turning their investments into further renovation and improvement of their homes. Seattle real estate news from several sources report an increase in remodeling expenditures across the country, even as sales fall. Over $115 billion more was spent in the first three-quarters of 2006 than in the same time period a year earlier. Architectural firms and construction companies are seeing a rise in public interest, particularly in higher end development, as opposed to basic structural renovation. With demand for this highly skilled companies peaking, the average backlog for national firms has reached almost six months!

New remodeling trends also reflect the changing economy. The hottest trends right now include renovation of older heating systems, insulation, and windows for newer, more energy-efficient technology. The rising prices of gas and increased traffic congestion have also prompted more home offices to be built.

Remodeling and renovation can often increase the value of a home by at least as much as the cost and will always promote appreciation. So, lesson learned: Hold tight, build right. For more information about current home listing software, be sure to check out our real estate website and idx tools.



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