Cost vs Value (What does it really mean) by Alex Guthrie

Yesterday during the show Chris and I discussed the recent cost vs value report that was published in Remodeling Magazine. Some surprising things caught my eye such as the overall loss in value reported in virtually all but a few categories and it seems smaller projects have a higher return than in the past.

It is apparent that the housing industry is still in a very bad state and the recovery has yet to take hold. Unfortunately for the industry, it  probably will remain flat until after next years Presidential election and then it will take quite some time to gain any real traction. The home building industry is directly affected by the employment picture and consumer confidence, consumer confidence is directly affected by the unemployment numbers and so on and so on.

My take on the cost vs value report is that property values are still dropping and until we hit the bottom in more markets and start a real rebound with housing values increasing we will remain stagnant.  This will require existing foreclosure inventories to get sold, unemployment to stabilize and reverse it’s present course, and the politicians to to start acting like grown ups again.

It should be a great time to remodel with the competitiveness that is so pervasive in the industry. So don’t be too intimidated by all the news but be smart with the dollars.

Leave a Reply