4 Rock-Solid Reasons to Remodel Your Home in 2018
As 2018 dawns, there's no question the real estate market is, well, a little crazy. Home values are surging, money is relatively cheap, and inventory is tighter than tight.
BY HOLLY AMAYA ON JANUARY 17, 2018
That's all downright welcome news for owners who've been considering remodeling. "Remodeling remains a very attractive option to increase your home's value," says Javier Vivas, director of economic research for realtor.com®. And that can be a smart move whether you're prepping your place for sale, or giving it a refresh for the long haul.
"The big variable here is location," says Vivas. "If you're happy with your neighborhood and your place has some value, there's an advantage over trying to move—because there may not be somewhere else for you to move to in your price range, or you may have to make a bigger cost jump than you would if you were simply remodeling."
Still wondering whether to grab a sledgehammer and get swinging? Here's the thing: The longer you wait, the more expensive renovating or remodeling gets. If you've been on the fence, this may be the year to get off it. Better yet, rebuild it! Here's why you should get moving now.
1. You (likely) have more cash
Consumer confidence is high, unemployment is low, and incomes are growing—which means you likely have more money in your pocket. Plus, if you're a homeowner, chances are good that your home equity has increased along with skyrocketing home prices over the past few years.
So when it comes to spending cash on all those get-to-it-later home projects, you're probably in good standing.
In fact, the remodeling market is expected to grow 7% this year, saysRobert Dietz, chief economist with the National Association of Home Builders.
"This market should be sustained by the fact that homeowners are remaining in their homes longer," Dietz says.
2. Interest rates for building loans are low
Interest rates for home equity lines of credit—which offer a flexible way of obtaining funds to pay for things such as home improvements—are still historically low. And even though interest paid on HELOCs is no longer deductible under the new tax reform legislation, experts say the building loans remain a good deal.
"Interest rates are still quite friendly but will likely go up this year—and lenders are competing for loan business," says Tom Miller, president of the National Association of the Remodeling Industry, who also owns a remodeling company in the Pacific Northwest.
Simply put: Take advantage of those low rates now before more increases hit.
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