Tom's Home Tips

According to a recent figures that have been released, several indicators point to a recovery in the housing market.  According to figures from HUD and the U.S. Census Bureau, nationwide housing production rose 2.8 percent in March.  This was led by a 6-percent rise in single-family starts.Builder confidence in those same single-family starts rose one point to 47 in April from a March reading of 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).  Derived from a monthly survey that NAHB has been conducting for 30 years, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair,” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average,” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.Combined with gains in production and builder confidence, a reduction in foreclosures and short sales points to an overall housing market recovery.  Last year investment home sales declined 8.5 percent to 1.1 million and accounted for 20 percent of sales compared with 24 percent in 2012, according to the National Association of Realtors (NAR).  Foreclosure filings tracked by RealtyTrac (a real estate information company), decreased 10 percent between February and January to 112,498 properties – the lowest monthly level since December 2006.

According to a recent survey, a large majority of American homeowners are planning at least one home improvement project this year.  73% of those who completed the online survey by American Express, said that they planned to update their homes this year.   That is the same percentage that was produced in last tear’s survey for the same question.   They plan to spend an average of $4,000 regardless of whether they plan on remaining in their homes or not.  “Personal style” was listed as the motivating factor for renovating.

Among homeowners who plan to sell their homes, they appear less eager to make improvements as compared to last year.  Reasons for this are open for interpretation.  Seller confidence is at a four-year high, with 65% believing that they will be able to obtain the asking price for their home.  This is up 25% from 2010.

Other notable statistics from the study were 16% of homeowners plan on moving in 2014.  That’s up from 10% in 2012.  46% plan to buy a home, which is up from 43% in 2013.

As you would probably imagine, a recent survey has highlighted big differences in how younger and older homeowners locate, hire and interact with service professionals to repair and upgrade their homes.  The Home Industry Leadership Board, a nonprofit organization dedicated to connecting homeowners and service professionals, conducted their inaugural Homeowner Mood and Mindset survey in January 2014.  The goal of the study was to illuminate homeowners’ attitudes and habits regarding the research, hiring and interaction with home service professionals.

The biggest common bond among all age groups was the reliance on good reviews and references to decide upon who will do the work.  But when investigating how & where those reviews were found, clear behavior differences became apparent.  Younger homeowners in the Millenial generation tend to depend more heavily upon online reference sources such as Home Advisor and Yelp, while older age groups depend more on personal references and recommendations.

Millenials also appear to be the hardest age group to please when it comes to getting estimates, setting appointments and overall satisfaction with the completed project.  The survey was answered by 1,000 homeowners who hired a service professional in the past year for a renovation or repair.  The findings seem to highlight a younger generation that is more reliant upon indirect contact through digital media rather than person-to-person communication.  Home repair specialists will need to adjust how they relate to the customer if they want to have a more positive interaction with the growing number of homeowners that are from the Millenial generation.