Home Remodeling Projects Stabilize in 2010

The fall 2010 U.S. Remodeling Sentiment Report shows that after a year of steady remodeling declines in 2009, the interest in remodeling stabilized in 2010. However, the size and scope of the remodeling projects are much smaller when compared to 2007/2008.
"We release these industry reports every six months based on a survey of 5,000 homeowners who are considering changing their home - either remodeling or moving," says Dan Fritschen, founder of www.remodelormove.com .
In today’s economy, many homeowners are more conservative in their remodeling decisions, often choosing need over want, and opting for smaller-scale projects that make good investment sense. Small bathroom additions, for example, are the most popular.

"They are also often the smartest remodeling project," explains Fritschen. "Small bathroom additions make good economic sense because they can increase the home's value."

However, survey respondents did indicate that while they are still planning to add a bathroom, the average size has decreased from more than 70 square feet in 2008 to just 60 square feet in 2010.

Beyond the bathroom, additional signs point to changes in the home improvement industry. They include:

-The average number of rooms that homeowners plan to remodel fell from 3.7 in 2007 to 2.7 in 2010.

-Home equity increases in 2006 and 2007 encouraged spending, but now as equity shrinks, homeowners are scaling down their projects.

-In the 2008 report, homeowners stated that their homes were worth an average of $390,000 with equity of $155,000. Today, the average value of survey respondents home's value is just $289,000 with equity at $110,000.

So, what appears to be the biggest concern? According to the report, 85 percent of respondents said the cost to remodel. However, the news is not all bad. While the scale and number of remodels is down, the interest from homeowners who are in a position to remodel is strong and their taste for higher-end designs and expensive materials remains.

More than 12 percent of respondents reported that they plan to use expensive materials in their remodel; almost 50 percent reported that they are excited to start their remodeling project; and 84 percent plan to start in the next 12 months.

A detailed report is available at: http://www.remodelormove.com/shopping/view_product.cfm?pID=42 .