Now is the time to tackle a Charlotte home remodel
Spring is traditionally the time when homeowners look around their houses, realize that updates are needed, and begin to seriously think about planning a Charlotte home remodel project. This year, we’ve heard several people mention interest rates and economic uncertainty as reasons why they are considering delaying needed improvements. However, delaying necessary changes is usually not the best economic decision. Here are a few reasons why this spring might be the time for you to schedule that kitchen remodel, bathroom remodel, addition, or whole house remodel.
Interest Rates are Holding Steady
For quite some time after interest rates rose, there was a general sentiment that they would go back down to their historic lows, and that simply does not seem to be the case. The all-time low of 2.65% was reached in January 2021. However, that was far from a normal market occurrence. Emergency actions taken by the Federal Reserve during the COVID pandemic are the primary reason why mortgage interest rates were so low.
Historically, the rate has averaged far higher. Between April 1971 and March 2024, 30-year fixed-rate mortgages averaged 7.74%, according to Freddie Mac. Freddie Mac is the primary industry source for mortgage rates and has been keeping records since 1971. Rates were actually at 16.63% in 1981, which seems like an outrageously high number now. In comparison, today’s average 30-year mortgage rate is about 6.81%, according to Freddie Mac. So while rates might seem higher compared to the recent past, they are still below historic averages.
Home Values are Increasing
At the same time, home values are going up, around the country and particularly here in Charlotte. The median home price has reached $230 square foot here in Charlotte, according to Rocket Homes. They also report that the median sales price has increased $14,709 (which is up 3.7%) since March 2023. Over the longer term, those numbers are even stronger. Charlotteans have seen their home values increase over 120 percent since 2014, according to Rocket Homes, and there’s also been a stronger level of equity growth to accompany that increase in value.
What that means is that your home is simply worth more than it used to be. And that’s a very good thing! That also means that you probably have more equity built into your home than you might have thought. This equity boost might allow you to pull some of it out now to make your current home live (and look!) better for your family today. Remodeling projects that you might have thought were out of reach may make much better financial sense if you look at them in terms of the equity that you now have in your home as its value has risen.
That increase in value can be a double-edge sword when it’s time to sell. That’s because home buyers are looking for certain amenities in homes that are priced higher. Whether it’s an open and modern kitchen, a luxurious primary suite, a flowing floor plan, or a higher level of finishes, higher pricing attracts buyers who demand more amenities. If your home doesn’t have what they are looking for, they will look elsewhere.
Demand is Loosening
Another very positive reason to consider a remodeling project now is that demand is getting a tad lower. After years of record remodeling growth coupled with building material shortages and supply issues that lingered long after the pandemic, the construction industry is loosening up a bit. The Joint Center for Housing Studies of Harvard University predicted a slight downturn in remodeling demand – 5.9% through the second quarter of 2024.
While that might not seem like a dramatic decrease, it does mean that now is your best chance in recent years to reach top professionals when they might have openings in their schedules. While that applies to the general contractor who will be coordinating your project, it might be a significant change for the skilled tradespeople they will be hiring – plumbers, electricians, drywallers, painters, etc. – whose schedules have been booked far in advance. It also means that specialized products ranging from windows to HVAC parts are more likely to be in stock than they have been in years past.
So if you are considering a Weddingon home remodel, a Charlotte kitchen remodel, a Waxhaw kitchen remodel, or any other project, now might be the best time to go ahead and talk to a professional remodeling contractor – like us!
Need help determining whether a Charlotte home remodel is right for your family? We are a full-service Design/Build Residential General Contractor. Reach out to us at https://palmercustombuilders.com/contact/ and we’ll discuss how we help you plan your dream home and avoid costly mistakes.
