Summer forecast: 60% of homeowners plan home improvement projects
As summer officially kicks off this Friday, Zillow Digs has released its Summer Home Improvement Trend and Spending Survey, spotlighting the 60% of homeowners who plan home improvement projects this season, with a median budget of $1,200.
According to the company, more homeowners are planning to invest time and resources into their surroundings due to scant housing inventory and trouble with mortgages.
Among the other findings was a strong indication that natural elements and glass features are trending at the moment. Forty percent of survey respondents planned outdoor projects, while 17% planned bathroom renovations. Based on company data, homeowners are leaning toward natural looks (such as stone fireplaces) and open, airy looks in the bathroom (with glass tiles and shower enclosures).
Additionally, the survey found that young homeowners and those with children were significantly more likely to be planning home improvement projects. Seventy-one percent of those between the ages of 18 and 34 were planning work this summer, compared with 61% of 35 to 54 year olds. Homes with children were 8% more likely to plan projects.
A separate survey by Harris Interactive found that consumers in the younger age range (18 to 34) were also three times more likely than their older counterparts to hire professional landscaping services. With spending in this area expected to increase among all homeowners by $620, the findings are consistent with the Zillow’s home improvement outlook, which prominently features outdoor renovations.
May delivers robust existing-home sales
On the heels of promising housing starts figures from last month, May’s existing-home sales also experienced a sizeable year-over-year bump, according to the National Association of Realtors.
May’s total existing-home sales rose 4.2% to a seasonally adjusted annual rate of 5.18 million, up from 4.97 million in April and delivering growth of 12.9% from May 2012’s 4.59 million rate. This is the highest it’s been since the tax stimulus of November 2009, with sales staying above year-ago levels for the past 23 months. The national median existing-home price for all sales came in at $208,000, up 15.4% from last year’s figures and marking the strongest price gain since October 2005.
NAR chief economist Lawrence Yun cautioned that though the market is strengthening, supply will not be able to support the current growth rate unless new home construction quickens its pace.
"The housing numbers are overwhelmingly positive," said Yun. "However, the number of available homes is unlikely to grow, despite a nice gain in May, unless new home construction ramps up quickly by an additional 50%. The home price growth is too fast, and only additional supply from new home building can moderate future price growth."
Total housing inventory is up 3.3% in May and is strong enough to support a 5.1-month supply at the current sales rate, down slightly from 5.2 months in April.
"The issue now is pent-up demand and strong growth in the number of households, with buyer traffic 29% above a year ago, coinciding with several years of inadequate housing construction," said NAR president Gary Thomas. "These conditions are contributing to sustainable price growth."
No comments found