Several years ago when the national economy crashed, the real estate market in SWFL and throughout Florida was impacted heavily. Housing prices declined, and foreclosures were common. In fact, Florida had one of the highest foreclosure rates in the country. Homeowners responded to the changes in the real estate market, the tightening labor market and the general uncertainty in the economy in generaly by tightening their own belts. While some chose to downsize to a smaller or more affordable home, others decided to remain in their homes and simply make the periodic repairs that were absolutely necessary. The general goal for many was to avoid spending extra money unless it was needed. Now, however, the economy is rebounding, and homeowners are awakening to the option of renovating their home.
Greater Equity to Tap Into
The housing prices may have plummeted in the Sarasota area when the economy crashed several years ago, but homes prices are recovering. Equity that was lost during the crash has largely been restored. In some cases, the value have exceed their pre-crash state. This is coupled with the continued principal reduction that homeowners have established by making their regular payments. The fact is that homeowners may have greater equity to tap into now than they have had in many years, and this gives them the opportunity to obtain an affordable home equity loan. The funds from a home equity loan provide homeowners with the ability to make fabulous improvements that ultimately can further enhance value as well as function and style in the home.
Low Interest Rates
Interest rates for home mortgages and home equity loans have generally increased in the last few years, but rates are still close to historic lows. For homeowners who have not refinanced in recent years or who already have a great interest rate, this means that it may be cost-effective and affordable to apply for a loan. When a homeowner has a considerable amount of equity in place and a higher interest rate, there is a strong chance that the monthly mortgage payment adjustment may only be nominal at best. This means that the homeowner may be able to access equity with little or no change in the monthly budget.
An Improving Economy
When the economy is sluggish, there is often a great deal of economic uncertainty that causes consumers to sit on the sidelines and to avoid making changes to their finances. This diminished consumer confidence may be one of the reasons why homeowners largely made few major improvements to their homes in recent years. However, now that the economy is rebounding, consumer confidence is returning. Homeowners feel comfortable making major purchases or taking on expenditures, such as spending tens of thousands of dollars on remodeling and renovations. Furthermore, many are thinking about making changes to the kitchens and bathrooms, such as installing glass tile backsplashes and other features, that may help them to decrease selling time if they choose to upgrade or downsize to a new home in the future.
Home remodeling efforts generally may increase property values, improve equity and create a home that is more desirable to potential buyers. Market conditions in SWFL are ripe for renovations, and homeowners can begin learning more about design possibilities for their space to get fabulous ideas.