Cost to Remodel A Kitchen

Many householders are thinking about the above mentioned question. Many consumers and business owners are asking the same question with regards to buying a new car or new computer. The media displays catastrophic images of falling home prices, melting housing market. Recently the media takes the attack to the next level! The U.S economy is doomed! We’re dealing with a global meltdown!

Even though it is clear to everyone right now the economy is reducing, house values are indeed falling, and the economic crisis is real. However, it’s unclear how severe may be the slowdown? What lengths shall we be from the light at the end of the tunnel? How low did house values get? Did house values revert to 1990s level? Are we in a bottom?

The amount of decline differs from one state to another and often between one city to a different. In northern New Jersey for example most homes have declined by 15%-20%.

An average $420,000 home have declined to around $350,000, that’s 17% decline.

However, an average bathroom renovation used to cost between $10,000 to $14,000. Nowadays, an average bathroom renovation is priced between $6000 to $8,000 – about 50% decline!

Many value driven consumers realize that now’s the best time to rework their house. The reduced cost of home remodeling would not stay that low for a long period. As a few of the fly by night contractors (that came about during the sub-prime wave) are going out of the business. Further, the quantity of qualified contractors available is decreasing. Additionally, investors buying distressed homes and first-time homebuyers (benefiting from the lowest interest rate in a long time) are likely to boost the demand for such qualified contractors. The increase in demand and also the decrease in supply can lead to shortage of qualified contractors. The shortage will drive the buying price of home remodeling up.

I know that lots of pessimists would critic the above argument. While I do not deny the argument could be questioned, I would like to suggest the following example.

Some time ago, the car dealers were struggling to convince consumers to buy SUVs although the prices of those cars were at very low levels because of the insane $4 a gallon gas price. Today, only couple months later (not years…) the identical cars can sell at higher prices as individuals are no longer concerned about gas prices and like the convenience of SUVs over the tiny gas saving cars.

I am not implying the housing crisis is going to be over in couple months. Nobody knows exactly when it will end but as long as you can pay for the house (housing payment about 30-50% of the income) you will benefit from purchasing a house and remodeling it.

Should you already own a home, benefiting from the reduced interest financing provided by many retail showrooms and contractors can help you remodel your home at low prices without having to be worried about denting your money position.

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