Good News For the Remodeling Industry - Existing Home Sales Up

Furniture World Magazine

According to the National Association of the Remodeling Industry (NARI), the news is good for remodeling contractors. Existing home sales rebounded in July and mortgage rates continued to decline. Recent buyers are an active spending group within the remodeling industry, accounting for 25.7% of the total dollars spent on remodeling in the U.S. in 2001. [Home sales information courtesy of the National Association of Realtors (NAR)] More good news for remodeling contractors- the NAR also said that low interest rates and other market fundamentals should keep the housing market on track for another record year. Meanwhile, residential remodeling and repair expenditures are at an all-time high. Projected total spending in 2002 is $163 billion, compared to 2001 at $157.5 billion and 2000 at $150 billion. Homeowners who undertake remodeling projects will increase the value of their home and recoup a significant portion of the investment if their project is well thought out and the work is performed by a professional. "Remodeling is a strong investment, particularly now in volatile economic times. Depending on the type of project, remodeling can definitely increase a homeowner's quality of life but with less risk and expense than what would be incurred by moving or building new," said NARI Executive Vice President Kevin McNulty. The top two home improvements with the highest return are minor and major kitchen remodeling and bathroom remodeling. Rather than simply following the latest trends, however, McNulty advises that, "Homeowners should consult with experienced, professional remodelers before completing initial plans," he continues, "to ensure that their needs are being met to fit their own particular lifestyle." For homeowners who are planning to remodel their home, NARI offers a free brochure entitled, "How to Select a Remodeling Professional," which is available to consumers by calling 1-800-611-NARI or by visiting NARI's website at www.RemodelToday.com