Faced with low housing inventory,  homeowners are choosing to remodel their existing homes in numbers that  reached over $130 billion in 2013. As reported by Kris Hudson in the Wall St Journal, this is a 3% increase over last year with a prediction to become a 5% increase in 2014 as reflected by the pending home construction permits issued. One of the facilitators for the increase in remodeling is the once again available Home Equity Loan which almost disappeared after 2007. Property values have increased in some areas of the Bay Area by over 25% in the last year which increases the equity required by lending institutions to issue this loans.  Economically speaking the increase in remodeling is welcomed by the contractors, architects, designers and suppliers by keeping their industry strong in these uncertain times. Tempered with the memory of the last housing market downturn, all parties appear to be cautiously optimistic that the return on the “re-investment” in their home is a better financial choice than facing the low inventory housing market which includes overbidding, multiple offers and asks the proverbial question, “Do we sell before we buy?”

If you are thinking of remodeling but don’t know where to begin, call me for a list of professionals that I have worked with, lenders and contractors.