WASHINGTON (December 9, 2015) — Homeowners preparing to sell often make improvements, both big and small, to their homes that can help yield positive results and garner top dollar from buyers. According to a new report from the National Association of Realtors®, remodeling projects can also bring major benefits to homeowners who choose to remain in their homes.
"Realtors® know that certain home upgrades and remodels can be beneficial to get more buyer eyes on a property, potentially bring in more offers or gain more equity from a home," said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "But remodeling projects are just as valuable to homeowners who simply want to get more joy out of their dwellings. Regardless of the situation, Realtors® know what remodeling projects bring the biggest bang for the buck and what projects are most likely to improve a homeowner's impression of their current place."
According to NAR's 2015 Remodeling Impact Report, which uncovers the reasons homeowners choose a remodel and the increased happiness certain projects bring once completed, 64 percent have experienced increased enjoyment in their home after completing a remodeling project. Additionally, 75 percent of respondents said they felt a major sense of accomplishment when thinking of their completed project. Fifty-four percent of respondents felt happy about the changes to their home, and 40 percent felt satisfied. As for their reasons to complete a remodeling project, 38 percent of homeowners said they wanted to upgrade worn-out surfaces, finishes and materials; 17 percent wanted to add features and improve livability; and 13 percent believed it was time for a change.
Realtors® named kitchen upgrades, complete kitchen renovations, bathroom renovations and new wood flooring as the interior projects that most appeal to potential buyers. Similarly, Realtors® also ranked projects based on expected value at resale (without accounting for project price); the projects that ranked the highest in this category were complete kitchen renovations, kitchen upgrades, bathroom renovations and the addition of a bathroom.
When looking at the interior projects that yield the biggest financial results upon resale, Realtors® ranked hardwood flooring refinishes (100 percent of project cost recovered upon resale), insulation upgrades (95 percent recovered), new wood flooring (91 percent recovered), and converting a basement to a living area (69 percent recovered) as projects to consider.
Exterior projects are also important for both sellers and homeowners looking to increase satisfaction with their current home. Realtors® said new roofing, new vinyl windows, new garage doors and new vinyl siding are most appealing to potential buyers and are highly valued upon resale (both considering project price and disregarding project price). Upon resale, Realtors® said new roofing would recover 105 percent of its project cost, a new garage door would recover 87 percent, new vinyl siding would recover 83 percent, and new vinyl windows would bring back 80 percent of their cost. As for exterior projects that bring the most happiness for those not necessarily intending to sell, homeowners said new fiber-cement siding, new fiberglass or steel front doors, new roofing, and new garage doors brought the most satisfaction.
The 2015 Remodeling Impact Report, the first of its kind from NAR that examines personal satisfaction from remodeling projects, surveyed Realtors®, consumers who have completed their own remodeling projects, and members of the National Association of the Remodeling Industry.
"Remodeling projects can greatly improve both the value of and satisfaction with one's home, which are great things no matter the reason for a project," said Judy Mozen, president of the National Association of the Remodeling Industry. "This report highlights the best projects to consider in either situation and showcases just how much of a difference a good and professional remodel can make in real numbers."
Salomone said the report not only assists homeowners who are preparing to sell in choosing the best projects to attract buyers, but it also helps those looking to get more personal satisfaction out of their homes. "Realtors® know that remodeling projects aren't just done to get more money for a home once it's time to sell - a home is your sanctuary, the place you raise your family and where you make lifelong memories, which is why the report can also help consumers decide which projects could enhance their current quality of life and happiness," he said.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
The National Association of the Remodeling Industry is the medium for business development, a platform for advocacy and the principal source for industry intelligence. NARI connects homeowners with its professional members and provides tips and tricks so that the consumer has a positive remodeling experience.
WASHINGTON (December 8, 2015) – The National Association of Realtors® has joined forces with Boys & Girls Clubs of America in an effort to strengthen communities and support the country’s youth.
Beginning in 2016, NAR and BGCA will begin collaborating to make a positive impact in communities across the country. Realtors® are the most trusted resource for real estate information, with unparalleled knowledge of local market conditions, while BGCA, the premier youth development organization in the U.S. serving nearly 4 million kids and teens annually, has helped put young people on a path to a great future for more than a century. Both groups are essential to their communities and integral to American society.
“BGCA has been close to my heart for many years, and as I begin my NAR presidential term, I am very excited that Realtors® will be partnering with their local Clubs and offering their time and resources to make a difference in the lives of their communities’ children,” said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “Every Realtor® knows building strong communities is an important part of the job, and working with BGCA allows us the chance to contribute meaningfully to the lives of children in the neighborhoods we help to create.”
Every local Boys & Girls Clubs has specific needs, so local and state associations of Realtors® and their members will work with their local Club to determine the best way to volunteer and offer resources and have the greatest impact. Activities could include planning a clean-up day for the Club, sponsoring a holiday-themed party, offering tutoring assistance or hosting a career day for teenagers. Associations participating in the BGCA partnership may be able to meet either their “Community Involvement” or “Community Investment” requirements under NAR’s Organizational Alignment/Core Standards policy.
“We are proud to partner with NAR, state and local Realtor® associations and the more than 1 million Realtors® nationwide. This partnership will have an immediate and profound impact on Clubs, communities and most importantly, young people across the country,” said Jim Clark, president and CEO of BGCA. “Realtors® live and work in every zip code in the country and, like Boys & Girls Clubs, are woven into the fabric of the communities they serve. We look forward to this impactful partnership and working together, hand-in-hand, on volunteer projects, Clubs improvements and mentoring, as well as fundraising and awareness initiatives to enable more young people to achieve great futures.”
NAR and BGCA have created a co-branded website, www.realtor.org/BGCA, as a resource for associations, members and consumers. The site includes a Club locator, toolkits for getting involved, success stories from associations, Realtor® volunteers and Boys & Girls Club alumni, as well as a list of sample volunteer activities, videos and more.
For more than 100 years, Boys & Girls Clubs of America (GreatFutures.org) has enabled young people most in need to achieve great futures as productive, caring, responsible citizens. Today, more than 4,100 Clubs serve nearly 4 million young people annually through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. They provide a safe place, caring adult mentors, fun, friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Priority programs emphasize academic success, good character and citizenship, and healthy lifestyles. In a Harris Survey of alumni, 54 percent said the Club saved their lives. National headquarters are located in Atlanta. Learn more at Facebook and Twitter.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.1 million members involved in all aspects of the residential and commercial real estate industries.
WASHINGTON (December 1, 2015) – The conference agreement for a multi-year surface transportation authorization was released in Congress this week, with both the U.S. House and Senate set to vote on the measure in the days ahead.
The bill funds several highway and transit-related projects, with monies coming from a variety of sources.
National Association of Realtors® President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, praised sections of the legislation that are important to strengthening neighborhoods and promoting safety, and in particular, applauded the decision not to use guarantee fees, or g-fees, from government-sponsored enterprises Fannie Mae and Freddie Mac as a funding mechanism.
Following is a statement from Mr. Salomone:
“The multiyear transportation bill moving through Congress is a win across the board, making critical investments in America’s infrastructure.
“NAR is pleased at the emphasis placed on safety and alternative transportation options to strengthen neighborhoods, improve property values and make non-motorized transportation, like sidewalks and bike lanes, a priority.
“Moreover, this legislation recognizes the value of homeownership and the need to protect future homeowners from unnecessary costs. NAR applauds the conference committee for standing with the homeowners of today and tomorrow.
“We hope to see this conference report win swift approval, so communities around the country can reap the benefits as soon as possible.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
WASHINGTON (November 30, 2015) — Pending home sales were mostly unchanged in October, but shifted marginally higher after two straight months of declines, according to the National Association of Realtors®. Gains in the Northeast and West were offset by declines in the Midwest and South.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, inched 0.2 percent to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9 percent above October 2014 (103.7). The index has increased year-over-year for 14 consecutive months.
Lawrence Yun, NAR chief economist, says pending sales have plateaued this fall as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets. "Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation1 and supply constraints that are occurring in other parts of the country," he said. "In the most competitive metro areas – particularly those in the South and West – affordability concerns remain heightened as low inventory continues to drive up prices."
According to Yun, although contract activity has slightly trended downward since the spring, the ongoing strengthening of several local job markets continues to fuel the improved demand for buying that has now pushed existing-sales above a 5 million sales pace for eight consecutive months.
"Areas that are heavily reliant on oil-related jobs are the exception and have already started to see some softness in sales because of declining energy prices," adds Yun.
Yun presented his 2016 economic outlook and housing forecast earlier this month at the 2015 REALTORS® Conference & Expo in San Diego. With demand expected to remain stable through the final two months of the year, he forecasts existing-home sales to finish 2015 at a pace of 5.30 million – the highest since 2006.
Although further expansion in existing-sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3 percent (5.45 million) in 2016. Home prices are expected to slightly moderate from a 6 percent increase in 2015 to 5 percent next year.
"Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home," says Yun.
The PHSI in the Northeast rose 4.5 percent to 93.6 in October, and is now 6.8 percent above a year ago. In the Midwest the index declined 1.0 percent to 103.9 in October, but remains 3.3 percent above October 2014.
Pending home sales in the South decreased 1.7 percent to an index of 118.1 in October and are now 0.3 percent below last October. The index in the West climbed 1.7 percent in October to 106.2, and is 10.4 percent above a year ago.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
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1The median home price in the Northeast in October was $248,900, up only 1.3 percent from a year ago. The other three major regions had price gains higher than 5 percent.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
NOTE: NAR's new quarterly Homeownership Opportunities and Market Experience (HOME) Survey will be released December 16, Existing-Home Sales for November will be released December 22, and the next Pending Home Sales Index will be December 30; release times are 10:00 a.m. EST.