It’s coming!!! You better remodel soon!
As the economy continues to strengthen the fear of inflation to weighs heavy on the building industry. Many economist were predicting that it would have started by now, but we are still holding steady with standard 3%-6% change in costs, but as house values start to get stronger and interest rates rise what effect will that have on the costs of goods and labor. Are we just buying time until we see inflation come? There are many that think this is the case. NAR Chief Economist Lawrence Yun is predicting that over the next year house values are going to jump to 2% a year over the next few years and then by 2015 it could jump to 4% to 6%. The inflation in the house values will trickle down to most every other cost of good. This could start with higher labor costs which will push the cost of good up.
So how does this affect you making a decision of when to remodel? It depends on your situations, but there are many people out there that are again gaining equity in their homes and are just waiting for the right time to use that equity to better their house. Forbes predicts that rates could climb back up to 6% for a 30 year mortgage by the end of 2014, but if the world economy continues to get strong it could push that another point even!
The important thing is that you watch the rates, your home value, and the market to make sure that you time your remodel as perfect as you can. Be able to get that kitchen you want with the equity from your house, but still have a reasonable rate on a mortgage. If you are thinking that time is now, then call Almar Building and Remodel at 781-826-2577 to start talking about your remodel options today.