Over the span of the past few years, two trends have become prominent in the housing market: Home renovations have become increasingly common and the inventory of homes for sale has decreased.
To be considered normal, a housing market should have a six month supply of homes for sale. According to the National Association of Realtors, we are at a 4.4-month supply.
A low inventory, such as the one we currently have, may cause some hesitation for homeowners wanting to list their home. Homeowners worry about finding a new home after listing their current home for sale. The lack of homes for sale has made many homeowners decide to renovate their current homes to fit their needs.
Ask yourself this: Would you rather spend a fixed amount of money on a down payment for a new home, or fix up the home you currently own?
If your current home fits your needs regarding space and accessibility, a renovation could make sense for you. If your desired renovations would end up changing the identity of the home or impacting the resale value, then renovating may not be the way to go. This kind of renovation may cost you more in the long run.
Home prices have been increasing over the last six years. Homeowners are gaining equity and may not even be aware of it. Listing your home for sale in this low-competition environment could make you substantially more money than renovations would.
If you are a homeowner who is considering renovating rather than selling, lets set up a time to chat. One of our PorchLight agents will help you make the right decision based on your position and the demand for your home in the current market.