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. 

NAHB Compares Energy Savings to Age of Homes

In a recent blog post by the National Association of Home Builders, homes which are 4 years old or less were compared with older homes in regards to energy and routine maintenance costs. Of course, it is generally expected that older homes will have more maintenance costs. However, CF Funding was surprised to learn that 73 percent of new homeowners spend only $25 per month or less on routine maintenance. This is compared to the 26 percent of all homeowners who spend over $100 on maintenance costs.

The study compared information from the American Housing Survey (AHS) dating back to 2009. As seen in the chart on the left, the majority of homeowners in new homes pay much less on average for routine maintenance than the average homeowner.

Homeowners who are stuck in a decision between a higher-priced new home (less than 4 years old) and a less expensive older home should consider the facts. Not only do most new homeowners spend less than 25 dollars per month on routine maintenance, but the AHS also reported that new homeowners saw major savings in energy costs. Electricity costs for the average homeowner totaled about 81 cents per square foot per year, while newer homes averaged about 68 cents per square foot. Even lower electricity costs were seen in homes with piped gas, where homeowners spent about 50 cents per square foot per year.

Other utilities were reported similar results: while water bills averaged 28 cents per square foot per year, new homeowners saw average costs of 22 cents. The median trash bill for homeowners was 15 cents per square foot per year, and newer homes had a medium price of 13 cents. Not only do homeowners with properties less than 4 years old save on energy costs, but insurance costs can also be reduced, as the median property insurance for newer homes was 31 cents per square foot as opposed to the national average of 39 cents per square foot. According to the NAHB, “These reduced expenditures represent one of the many reasons that the current system of appraisals needs updating to reflect the flow of benefits that come from features in a new home.” Many of the benefits the NAHB is referring to may be seen in Green homes. As CF Funding reported in February, green homes have significantly contributed to the home construction market over the past few years and green homeowners frequently reported lower utility costs and better insulation. The lender is happy to see reduced energy costs for new homeowners as the quality of green home building continues to improve.

Both new and old homebuyers will need financing to support home purchases in 2014. Those who are home shopping this spring should contact CF Funding Corporation for a free preapproval and competitive interest rates on mortgage loans. CF Funding loan specialists are rated 5 stars on Facebook at www.facebook.com/cffundingcorp and on Yelp at http://www.yelp.com/biz/cf-funding-naperville

Single-Family Home Starts Grow 6 Percent in February

The warm March weather caused an increase in housing starts last month, as single-family home starts grew 6 percent in comparison to February’s estimate. New home starts for privately-owned buildings were up about 2.8 percent from the revised February estimate, reaching 946,000 in March (seasonally adjusted annual rate). Although these increases also come with losses, as fewer permits were issued and fewer homes were finished in comparison to February, CF Funding is optimistic that housing starts will bounce back as the weather continues to improve.

Other stats in the U.S. Department of Housing and Urban Development’s Building Permits Survey include a 0.5 percent increase in single-family building permit authorizations as compared to February, and a 3.8 percent decrease in single-family housing completions as compared to the revised February rate. In March, there were 79,100 housing starts (on an unadjusted basis) as compared to 63,100 in February. 54,000 of those were single family units, as compared to 41,000 in February. On a non-seasonally adjusted basis, approximately 83,000 permits were issued in March, as compared to 70,500 in February.

CF Funding is happy to share that the Midwest saw large increases in permits, with a 26.0 percent increase month-over-month and an 18.7 percent increase year-over-year. According towww.mortgagenewsdaily.com, “Housing starts [in the Midwest] rose 65.5 percent from February and were 2.9 percent above the same period in 2013. There were 14.1 percent fewer completions than in the previous month but 15.5 percent more than a year earlier.” The West saw an unchanged rate of permits issued, and the Northeast saw a 33.3 percent increase. The South unfortunately saw a decrease in permits issued, with 17.1 percent less than February and 1.1 percent less than one year previous.

The Building Permits Survey is based on a voluntary mail survey by building permit officials. For more information visit www.census.gov.

Those who are looking to build a new home or remodel in 2014 should contact CF Funding Corporation for the best construction mortgage options, including our new Express Home Loanand One-Time Close Construction Mortgage. Those who are looking to buy a home should start shopping sooner than later to avoid rising prices. Lock in a low interest rate by contacting a CF Funding loan specialist at (888)344-3080 or http://www.cffunding.com.

Leading Markets Index Shows Housing Market Improvement

The National Association of Home Builders released their Leading Markets Index (LMI) yesterday, revealing that “recovery continues to spread” as 59 metro markets nationwide returned to (or exceeded) their normal levels of housing activity. CF Funding is happy to share that the nationwide average is at 88 percent of normal economic and housing activity, based on current permit, price, and employment data. As CF Funding mentioned yesterday in the lender’s daily news feed, consumer attitudes are increasing per the Fannie Mae National Housing Survey, and 68 percent of respondents said it is a good time to buy a home. The LMI confirms these consumer attitudes to be true, as the market continues to recover.

According to the NAHB, 28 percent of metro areas (out of 350 nationwide) saw their score rise this month and 83 percent of them have shown improvement over the past year. Chief Economist David Crowe shared an optimistic perspective, “It’s a promising sign to see areas like Los Angeles and San Jose joining the top ten largest MSAs showing a recovery. We still expect 2014 to be a strong year for housing and to aid in the overall recovery. The job market continues to mend and with that we will see a steady release of pent up demand of buyers.”

One continuously promising metro is Baton Rouge, LA, which scored 1.42 (42 percent better than its normal market levels). Honolulu, Oklahoma City, and Austin also topped the list. As the weather improves this Spring, CF Funding expects to see more metro areas reaching and exceeding their normal economic levels.

In other housing news, The Bureau of Labor Statistics has shared employment data revealing an increase in construction employment. The most recent report showed a 2.6 percent increase nationwide for February on a year-over-year basis. 73 percent of states had year-over-year increases as of February. Corelogic stated recently on their blog, “94 percent of states had increases in construction employment [during the housing boom], but that share fell to zero in the depths of the housing and financial crisis in 2009… while these year-over-year increases look tepid, they are strong when compared to the period of double-digit increases in construction employment from January 2009 to March 2010.” The state of Florida showed the largest year-over-year increase this February, improving by 11 percent. West Virginia showed the least improvement, with a 6.5 percent decrease in construction employment.

For more daily mortgage news, follow CF Funding on Facebook at www.facebook.com/cffundingcorp. CF Funding is now licensed in the state of Florida ! See all states where our services are available on our Facebook page or visit www.cffunding.com.