Spring Remodeling Projects to Start Saving For

 As cold weather and snow continue through mid February, it is hard to imagine when Spring will come. Soon enough the warm weather will return and home improvement projects will be in full swing. According to CNBC, builder sentiment has remained in mid-to-upper-50’s (over 50 is positive) for the past 8 months, with February at a score of 55. This is a great score in comparison to last February, in which we experienced similar weather and builder sentiment was at a score of 46. The National Association of Home Builders’ Chief Economist David Crowe described the scores as “a modest, ongoing recovery,” predicting that “Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead.”

With a growing economy and improving weather, CF Funding expects remodeling projects to surge this spring. Many may be remodeling this year to increase their home’s appeal in order to sell it.

You may be wondering what is the best remodeling project for your home. Which improvement will provide a large return on investment? What can I afford this Spring? CF Funding is here to help.

According to Power Home Remodeling Group, the 4^th largest home remodeling company in America, “Giving your home some added curb appeal with an exterior makeover will automatically boost the resale value of your property... If you plan to stay put, focus on cost effective renovations that make your home more comfortable, functional and low maintenance for your family. Either way, enhancing your home this spring will help protect your greatest investment.” Examples of exterior improvement projects include updating siding, replacing windows, and painting or replacing entry doors.

If you plan to sell your home in the near future, these projects are important because they may make a great first impression on homebuyers. If you are worried about the cost, consider this: according to Steve Brown, the president of the National Association of Realtors, “Projects such as entry door, siding and window replacements can recoup homeowners more than 78 percent of costs upon resale.” The association also rated exterior projects among the most valuable home improvements in their Remodeling Cost vs. Value Report. Examples included deck addition, garage door replacement, and roofing replacement.

Looking to start remodeling indoors before the weather permits outdoor projects? CF Funding suggests a kitchen or bathroom remodel, as they also provide large return on investment. Be sure to contact us if you are considering a refinance, as you could receive cash back to help pay for your Spring projects. Visit www.cffunding.com for more info or call (888)-344-4080 to speak to a specialist today!

For more home improvement ideas, visit our Pinterest page at www.pinterest.com/cffunding. 

Builder Confidence Rises in June as Housing Market Recovers

CF Funding is glad to see that builder confidence is rising again, as the NAHB/Wells Fargo Housing Market Index rose 4 points this month to a score of 49. A score of 50 or higher means more builders than not feel confident about the state of the housing industry. Limited availability of labor and other factors contributed to scores in the lower 40’s over the past few months, but Kevin Kelly says “a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry.”

As CF Funding has mentioned previously on the lender’s blog, the HMI results measure factors such as current sales, sales expected over the next 6 months, and traffic of prospective buyers. Builders’ responses from the survey are used to calculate a score from 1 to 100. The survey has now been conducted for 30 years.

All three indexes showed positive results in June, with current sales conditions increasing by 6 points to a score of 54. Expected sales conditions over the next 6 months rose 3 points to a score of 59. Buyer traffic increased 3 points to a score of 36. Although CF Funding is disappointed to see the buyer traffic score and overall score under 50 points, the lender is looking forward to further gains in builder confidence and expects all three indexes to rise in the coming months.

Regional HMI scores are also calculated, with the Midwest showing similar results as the overall survey, an increase of 4 points to reach 49 this month. The Northeast currently holds the lowest regional score of 33, and the West holds the highest regional score at 53.  On a 3-month average, the South and Northeast rose 1 point to 49 and 34. The west was unchanged at a score of 47. The Midwest fell 1 point to a score of 46.  NAHB Chief Economist David Crowe explained in a press release that “Consumers are still hesitant, and are waiting for clear signals of full-fledged economic recovery before making a home purchase… builders are reacting accordingly, and are moving cautiously in adding inventory.” Unfortunately for buyers, lower inventory usually means higher home prices due to less competition from other sellers.

Luckily, interest rates remain at historic lows, with slight decreases seen today in both 30-year and 15-year fixed-rate mortgages, as well as JUMBO and ARMs. CF Funding will keep readers updated on interest rate changes and the state of the housing industry on the lender’s Twitter page at www.twitter.com/CF_Funding.