San Francisco, CA (1888PressRelease)
June 07, 2009 - Recent surveys and reports show a picture of the home remodeling industry that is a mixed bag of good news and bad.
The bad news: the most recent RemodelorMove.com Remodeling Permit Activity Report shows a 20% decline in the number of remodeling permits issued during the first quarter of 2009, compared to the same quarter in 2008. The report is a representative sampling of residential remodeling permit activity in municipalities throughout the United States.
The first bright spot for the home remodeling industry comes from the first quarter 2009 www.RemodelorMove.com US Remodeling Sentiment Report, a survey of 5,000 homeowners considering remodeling conducted semi-annually, shows an increase of 5% in the number of homeowners who stated they will probably remodel in the next 12 months. This is the first increase reported in this benchmark measure of future remodeling plans since 2007, when more than 90% of the homeowners who were thinking about remodeling reported they would probably remodel in the next 12 months. Since 2007, this measure of homeowner sentiment has fallen steadily, first when home prices leveled off, then when home prices began to decline, and again following the start of the current recession. Barring future bad news for the economy or home prices, this key remodeling sentiment should continue to improve.
The second bright spot for the home remodeling industry is that the cost to remodel is now 20% less than it was in 2006, the result of savings from a variety of sources, including the economic stimulus package federal tax credits, incentives from state governments and utilities, reductions in prices for many materials and home products, and lower bids from contractors and tradespeople as they compete to keep their work crews busy. Details on these savings opportunities are available at www.remodelormove.com.
Other findings from the First Quarter 2009 Remodeling Sentiment Report include:
82% of respondents said the cost to remodel is their biggest concern;
12% of respondents planned to use economical materials when they remodel, while 12% plan to use expensive materials, and the remaining 76% will use standard-priced materials;
89% of respondents are changing their remodeling plans because of the current economic recession.
The table below compares 2009 data on number of permits issues, total valuation or cost of the projects and average cost of all projects to the same months in 2008.
# Permits Valuation of Project Average Cost Month
-5% -38% -35% January
-9% -40% -34% February
15% -46% -54% March
This table shows that, despite a modest decline, and even an increase, in the number of permits issued, there is a very steep drop in the valuation (or cost) of the projects undertaken, as well as in the average cost of all projects undertaken. Even the seasonal increase in March 2009 was markedly lower than the increase in the same month in past years, which has averaged 30%.
Other observations from the permit data:
The Southwest is the only region in the nation that recorded an increase in permit activity during each of the three months in the first quarter of 2009.
Many of the projects undertaken in the first quarter (based on permit information) focused on repairs. In the Northeast and the Midwest, a very hard winter and widespread damage to roofs resulted in an increase in the number of projects, but not in significant growth in homeowner confidence.
About RemodelorMove.com
www.remodelormove.com is the online resource for homeowners making the decision about whether it is best to remodel their current homes or to move. With its partner site, www.remodelestimates.com, the site provides information, unique and uniquely accurate cost-comparison calculators, forums, seminars, and advice for homeowners. Another partner site, www.saveonmyremodel.com, helps homeowners who decide to remodel find the right ways to save money without compromising the quality of their remodeling projects. Interviews with report authors, regional reports, and archived reports are available by contacting reports ( @ ) RemodelorMove dot com or by phoning 888.825.4169.
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