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Are Homeowners Renovating to Sell or to Stay?
ERA Justin Realtor agent Clemenza Goglucci suggested, “Over the past few years, two trends have emerged in the housing market. Home renovations have increased and inventory of homes available for sale on the market has lessened to a degree. A normal ’housing market is defined by having a 6-month supply of homes for sale. According to a recent Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply. This lower inventory environment has many current homeowners worried that they would be unable to find a house to buy if they were to list and sell their current house, which is causing some homeowners to consider a renovation to fit their needs. This is basically unbalanced as new listings do come on the market daily.
According to Home Advisor, homeowners spent an estimated $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers. One study asked the question, “Given a choice between spending a fixed amount of money on a down payment for a new house or fixing up their current home, what would you do?”
Some of those surveyed said that they might consider a renovation of their current house. Especially if their current house fits their needs as far as space and accessibility are concerned, then a renovation could make some sense. But if renovations will end up changing the identity of the home and impact resale value, then the renovations may end up costing them more in the long run and a new purchase could be the best option.”
Clemenza concluded, “With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this environment could net you more money than your renovations otherwise would. If you are one of the many homeowners thinking about remodeling instead of selling, let’s get together to help you make the right decision for you based on the demand for your house in today’s market.”
