Contractors see uptick in demand
You go back to the low point of the housing bust, which was eight years ago, home prices around the country have gone up eighty to one hundred percent from where they were just eight years ago. Has Dramatically affected affordability of homes for so many people. And then in turn people in a home who might normally be in move up mode. When you go move up. The home you're in May of increase the same percent in value is the home you want to move up to, but the dollar increase in value. Is, larger on the move up home simple math the you're working from a larger base and that move up home. So it may be a bridge too far for your wallet. as far as home prices. Growing. At a rate higher van economic growth incomes, and all the rest that's not sustainable in historically. Home prices don't they do something called reversion to me. So I don't know that. Prices are headed for a decline. That's a rare circumstance that we experienced brutally. Starting in two, thousand, seven but. Prices May in fact, moderate. Looking forward. But what if you are in a home? and. You're trying to decide should we move up or not? Remembering that home prices have moved up A lot of people are deciding to stay where they are. And renovate or even go beyond that and do in addition to a home. And I want to talk about some of the pluses and minuses of it the big plus for a lot of people is a lot of homeowners. have locked in phenomenal mortgage rates. Loved the neighborhood they live in the schools they have kids their kids go to. And so moving is not as appealing. Interest rates though still are great and if you move. You'll still get that great rate, but there's cost the cost of selling a home. You got the cost of buying a home the math I typically look at just back the envelope is it cost you ten percent? Buying a home ten percent selling a home. I mean it's A. Cost you may wonder how I come up with that when you're buying a home closing costs and other expenses that you have. When you move into a home, you don't anticipate when you sell you've got the Real Estate Commission and selling expenses that can end up taking as much as ten percent of what have there so. That leaves staying in place is an alternative. And left's you've Donna renovation the past. You may not be aware they're not exactly. A fun event. The completed project is really fun but getting from the idea to getting it completed. It's not as much fun. And Renovation. Contractors are extra extra. Busy right now, a lot not even returning calls and when they do quote you, the quotes will be higher. Their costs materials in many cases are higher labor higher and they can charge higher profit margins because they've been so busy.