Homeowners are weighing their options to either to sell their home in this low-competition market or renovate and stay.
Over the past few years, two trends have emerged in the housing market:
- Home renovations have shot up
- Inventory of homes available for sale on the market has dropped
A normal housing market is defined by having a 6-month supply of homes for sale. According to the latestExisting Home Sales Reportfrom theNational Association of Realtors, we are currently at a 4.4-month supply.
This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.
According toHome Advisor,homeowners spentan average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.
A recent study asked the question,
Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?
Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.
More and more studies are coming out about the intention that many Americans have toage in place(or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.
If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end upchanging the identity of the homeand impacting resale value, then the renovations may end up costing them more in the long run.
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 low-competition environment could net you more money than your renovations otherwise would.
Bottom Line
If you are one of the many homeowners who is thinking about remodeling instead of selling, lets get together to help you make the right decision for you based on the demand for your house in todays market.
Curious about the current value of your Delaware home? Want to see how yours measures up to comparable homes in your neighborhood? Then request a FREE Home Evaluation here or contact an Active Adults Realty Agent today!