For many, home renovations are something to look forwards to. They’re a sign that the hard work of planning and saving and preparation have paid off. They mean that soon your home will hold even more value, and hopefully you’ll have new and exciting spaces to share with your family and friends. For others, and many that the Australian Heritage Homes team works with, they’re something that we put off. They see the dollar signs, the extended timelines, the question marks and the uncertainty of their home. These are understandable emotions and ones that the Australian Heritage Homes team wants to help you work through, but they’re not the focus today. In fact, the focus today is when these emotions make sense – when it’s important to wait before you kick off your next home renovation. Read on for why this may be an important shift to make.
Housing inventories are lower these days. And ironically, demand for homes is higher. Both of these don’t affect the price of the actual house that you purchase, but they do impact pricing around construction, as well as its demand. Contractors are struggling to bring in enough contractors, just to cover small and medium-sized projects.
There’s a science behind this. If home values are increasing, owners are much more inclined to add to their homes. There’s a lot more competition in the landscape. If your neighbour’s home down the street is the same value as yours and you’re both trying to sell, you’re going to drive whatever additional amenities and benefits you can to edge him or her out of the market. Homeowners also feel far more confident when the market booms. They feel like any money that they contribute out of pocket will come back to them and then some.
So, construction teams are taking advantage of this. They know that in bullish markets, consumers will pay more. And they’re shifting their prices up as far as they can. That’s why the Australian Heritage Homes team is here to be your advocate. We say that this is a bad time to do the renovation project that you’ve been keeping in your back pocket for a while.
Here’s an interesting example from the Washington Post:
“Someone recently shared with me an estimate they got from one of the large home-improvement stores. They simply wanted their tub and their one-piece tub wall surround replaced. It was a one-day job. I did some research and learned that material costs were less than $2,000. Two tradesmen for eight hours at $50 an hour is $800, but their bid for the work was $6,000.”
It’s also important to think about the materials that you’re leveraging. Depending on the area you live in, different types of wood and building materials could be skyrocketing. The reverse is also true, it’s just imperative to keep a consistent eye on the market.
Bottom line, if you have Australian Heritage Homes in your corner, you’re set up for success. Reach out to us with any questions that you may have.