Home Repairs And Maintenance Protect Home Equity In Minneapolis Homes: Guidance from Destiny Homes
As home values are increasing again, homeowners are ready to invest in home repairs and wished for home renovations. Home renovations and home repair projects are projected to increased in 2013. Moody Corp announces home equity loans rise sharply and the Commerce Dept. releases a report showing the home equity loans are most commonly used to make home repairs and renovations plans. Destiny Homes, a Wayzata home renovator and builder, comments on how homeowners can make home improvements that consider cost versus value to protect home equity.
Culminating October's housing market statistics, the data released by the Commerce Department shows the most common use of Helocs is to pay for home renovations and repairs, at 54 percent. Renovation spending this year is projected to climb as high as $120.7 billion from $114 billion in 2011, according to Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts.
October Marks 12 Consecutive Months Of Home Value Appreciation
Exceeded analyst estimates, 2012 home repair and renovation spending tops 2011.
Zillow’s October Real Estate Market Reports stuns housing analysis with the the largest monthly increase since August 2005. It was not surprising to Minneapolis home builders, though. Continuing the incline, data shows that national home values rose 1.1% in October over the previous month to $155,400. October 2012 marks the 12th consecutive month of home value appreciation, further evidence of a stable housing market recovery. On a year-over-year basis, home values were up by 4.7% (Figure 2) in October 2012 – a rate of annual appreciation we haven’t seen since September of 2006, before the peak of the housing bubble. Rents declined in October, depreciating by 0.1% from September to October. On an annual basis, rents across the nation were up by 5.4% (Figure 3). The Zillow Home Value Forecast, which is now available on a monthly basis, calls for 1.5% appreciation nationally from October 2012 to October 2013. Most markets have already hit a bottom and 40 out of the 256 markets covered are forecasted to experience home value appreciation of 3% or higher.
When Home Values Rise Home Equity Lending Increases
After six years of declines, lending on home equity will rise 30 percent to $79.6 billion this year, the highest level since the start of the financial crisis in 2008, according to the economics research unit of Moody's Corp. Originations next year will jump 31 percent to $104 billion, it projected. "If house prices continue to rise, home equity lending will keep rising, and homeowners will fell more confident of making home improvements that raise their home equity and long-term values".
Home Improvement Centers Gain Profits
Exceeded analyst estimates, 2012 home repair and renovation dollars spent top 2011.
Shares of Home Depot Inc. (HD), the largest U.S. home improvement retailer, have jumped 54 percent this year as profits gained. The Atlanta-based company this month reported third quarter net income climbed 1.4 percent to $947 million, from a year earlier. Lowe’s Cos., the second ranking home improvement business selling home repair and renovation supplies, also reported third-quarter profits that exceeded analyst estimates. October gains on purchases are calculated from data accrued before superstorm Sandy that hit the east coast. With home repair and replacement estimates still calculating and climbing, the record-breaking hurricane blasted through eight Northeastern U.S. states and will keep home builders busy for a while.
Popular Home Repair And Improvement Projects That Protect Home Equity
In addition to making necessary repairs, consumers are choosing home improvement projects such as:
More energy-efficient homes by sealing then for winter with better insulation
Bathroom and kitchen remodels that handle needed repairs returning an estimated 72.1 percent of the nearly $20,000 job cost.
Water damage that prompts appliance upgrades, better plumbing, or replacing a leaky roof.
home front entrances
Landscaping and curb appeal improvement projects
Room additions particularly attic bedrooms costing $50,148 was expected to recoup 72.5 percent of the cost nationally - up 0.3 percent from the 2010–11 Realtor Magazine report.
Painting prep and repair to seal and protect surfaces
Garage remodels that include garage door replacements
Home siding - new fiber-cement siding was expected to provide the highest return, recouping an estimated 78 percent of the $13,461 cost.
Home Repairs Are A Regular Responsibility of Homeownership
By owning your home, historically, you are eligible to receive many tax benefits throughout that are significant value. Homeowners are returning to using home equity loans for home improvements. This means using the house as collateral and homeowners have been able to deduct the interest on the home equity loan come tax time. Many people find it necessary to take out a loan to make improvements to their homes, as well as for repairs and fixes that mean a well maintained home. Regardless of the type of home you have, there are always renovations and repairs to be made and built into scheduled maintenance.
"We've reached a milestone with one full year of monthly home value gains," said Zillow Chief Economist Dr. Stan Humphries. "Those dubious about the durability of the housing recovery will point to the large role that investors are playing in the recovery, or to the large number of foreclosures yet to hit the market, as factors to be wary of. But the bottom line is that homes are more affordable now than at any time in recent memory, and buyers are seizing this opportunity. We expect to see increasing numbers of potential buyers entering the market as the broader economy continues to recover and household formation picks up further. We're hopeful that negotiations over the 'fiscal cliff' don't derail this momentum."
Use A Professional Home Builder For Major Home Repairs
Many homeowners may try make home repairs and renovations themselves. However, the ultimate costs in terms of time and improper practices may mean redoing the project. Structural elements that are involved in a home repair project - such as: beams, footers, headers etc. — are often forgotten components of a home repair that are critical to its long-term stability and safety of a home. It is not worth taking chances with structural components. Homeowners are better to use a experienced and professional home builder to plan and complete home improvement tasks because they know code and which specifications should be followed to the letter.
Home Painting Projects Benefiting From Professional Skills
A top quality paint and solid preparation are one of the best home "wraps" you can make to protect your home's surfaces inside and out. It is easy to be more visual when it comes to paint, however, consider that a good, lasting paint job requires a commanding amount of prep work. This may involve skilled wall repair, replacing deteriorating moldings, dealing with moisture or smoke damage, scraping paint (which can be a health risk if it's lead paint), priming and caulking over old finishes with various products. Depending on what you're working with, you may need someone with more experience to help. Wall repairs often constitute more of the painting project than the paint application itself.
Minneapolis Real Estate Remodeling Industry
Home Maintenance And Repair Jobs
"The improvement in the RMI provides more evidence that the remodeling industry is making the orderly recovery from its low point in 2009 as we’ve been expecting,” said NAHB Chief Economist David Crowe. “Although remodeling projects over $25,000 are now showing some signs of strength, they are still lagging behind smaller property alterations and maintenance and repair jobs."
With the housing industry projected to be even better in 2013, Destiny Homes, a Minneapolis based luxury home builder and remodeler, is already scheduling 2013 projects with Home Designer Liz Sprenger. Twin Cities area residents needing to protect their home equity either through a major home renovation or home repair project may reach either Butch or Liz by calling 952-934-5706.
Download the Harvard Housing Market Executive Summary
Download the White House Report on Tax Cuts And Consumer Spending
Butch and Liz Sprenger, owners of Destiny Homes Remodeling And Renovation Services Home page: www.destiny-homes.com. Service the entire Twin Cites Metro, from our main office in Deephaven, MN working as home Remodeler and owner of Destiny Homes.