Remodeling is not heavily financed
WHY THE REBOUND? It may seem counterintuitive that even as the housing market continues to suffer and the economic recovery feels tentative, the renovation market is picking up. But Mr. Baker pointed out that while home sales and construction were linked to mortgage rates, renovations were determined more by income levels and job security.
"Remodeling is not heavily financed," he said. Instead, people are willing to spend cash, Mr. Baker said, because they have "a comfort level that the value of my home isn't depreciating." -- Kermit Baker, director of the remodeling futures program at the Joint Center for Housing Studies.
He said during the peak years of 2006 and 2007, only 30 to 35 percent of renovations were financed through home equity loans or second mortgages. Last year, that number dropped to 15 to 20 percent.
YOUR MONEY
As Remodeling Rebounds, Caveats for the Homeowner
By PAUL SULLIVAN
Published: March 18, 2011
Homeowners are edging back into renovations, but having work done means paying attention to some basic safety concerns.