In Come the Waves: Remodeling Market Falters
From the Stockton Record:
When the home-sales market is hot, the remodeling business usually is, too. But home sales began slowing last fall, and a downturn is starting to show up in the renovation sector, say local contractors specializing in remodeling.
Business is still good, just not as good as last year, said Rick Fooy, owner of Silver Fern Construction & Remodeling in Stockton. The local remodeling business roared in the previous five years along with the existing and new-home market, Fooy said, but this year, work has slowed to perhaps 80 percent of last year's pace. "I think people are a little unsure of finances," he said. "It's all about money."
Daniel Maloy, of HandyDan Construction in Stockton, said there's still a lot of work out there, but he has noted that a lot of customers are concerned about the scope of remodeling projects and pushing their lines of credit.
"Everybody's needing stuff done," he said. "They're just more concerned about what they want to spend." Many are downsizing the scale of remodeling projects, he said, and are just redoing the bathrooms, for example. He also believes rising interest rates slowed business, though not enough to hurt.
Plus, with home prices flattening or even sinking in a slow housing market, there's more concern about whether the cost of a remodeling will be recovered when the house is sold later, he said. Maloy said that long term, remodeling typically is worth the expense, he said, but it's the short term that people are wondering about.
5 comments:
will the line of credit be adjusted downward by the drop in equity in the home? Will bank appraisers be doing drive by reappraisals?
Slightly off topic here, but does anyone know much about the Woodland Spring Lake Development? Specifically the Centex development there? How are they doing?
I seem to be on the end of the home remodeling wave. Renovations to an inherited house here in North Sac have made me a regular daily customer of Lowes in Citrus Heights.
Even though I used Home Depot in the past, they really pissed me off by their endorsement of Illegal Day Laborers by contibuting to day centers, use of their parking lot, etc.
Those kind of self serving underhanded tactics are BS !
So, instead of complaining to a non-responsive company board, I'll use my wallet for the competition.
And by the way, although the prices are slightly higher at Lowes, at least you dont end up waiting in line 45 minutes.
RE: Spring Lake Development
Its responsible for most of the recorded sales activity in the Woodland area - doesn't show in MLS statistics, but impacting resale activity. Between all builders, maybe 20-30 sales a month.
Why? new, nice, nice community, much more affordable than restricted Davis.
Another Anonymous.
Spring Lake?
That place is a mess, IMHO. I heard the builder is suing all the home buyers because prices for new homes are dopping and he wants them to pay for his lower profits. Furthermore the Mello Roos fees are doubling every 3 days, because the schools are underfunded. And now, the sewer is backing up, flooding the homes with sewage, even on the 2nd floors. And the mold....oh don't get me started....toxic. Children are DYING EVERY DAY.....are you getting the picture now????
Signed, Just ANOTHER Anonymous, who is no shill for a home builder! Get lost "anon's". Go promote your homes on some other web site. Your tactic to use any method to sell homes is readily apparent when you try to blog and it speaks volumes about how desperate you are!
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