Home improvement market gets big boost

Home improvement market gets big boost

The Novi Home Improvement Show, held recently at the Suburban Collection Showplace, featured large crowds again this year and a 14 percent increase in exhibitors versus 2010. "We also saw many of our exhibitors taking on larger space for their exhibits, which tells me they see the market improving," said Mike Stoskopf, executive officer of the Building Industry Association of Southeast Michigan, the sponsor of the show.

The activity from both homeowners and those in the industry is a sign that many people are planning to spend their tax refunds or bonus checks from the auto industry on home improvements.

One of the focuses of the show was aging in place, a hot topic for homeowners as the baby boomers age and need special products to help them remain in their home. One of the latest technological advancements I saw at the show allows children of aging parents to monitor Mom and Dad's daily activities via a computer or smart phone.

IntelliHome Systems, www.intellihomesystems.com, can install a monitoring system that gathers information about the parent's daily activities by having sensors in key places in the home. When the sensors are activated, such as Mom getting out of bed or Dad opening a cabinet in the bathroom to get his medicine, the activity is relayed via e-mail or text message to the son or daughter to alert them of this activity.

The IntelliHome system also offers a panic button that the parent can push in an emergency, and the family member will immediately receive a text message or e-mail to alert them.

Another exhibitor, Spire Integrated Systems, (248) 544-0072, www.spireintegrated.com, was displaying its intelligent home control technology, where the homeowner can control everything from televisions to thermostats, door locks, audio systems and lights.

Using the Control 4 system, your home can be controlled with an integrated keypad, and the system even has the potential to be controlled remotely with a smart phone or computer from the car or office. And with many of today's high-end appliances, you can even remotely control your washer, dryer, oven or dishwasher to help you get more done before you get home.

Mr. Enclosure Sunrooms, (586) 939-4700, www.mrenclosure.com, had big crowds around its exhibit to see the new Solara adjustable patio cover. The Solara patio cover is made entirely of recyclable aluminum and features louvers which can be opened when you want more light and closed during inclement weather to protect your patio deck, deck furniture and grill. It can also be engineered to withstand 70 pounds per square foot of snow and up to 120 mile per hour winds.

Many people at the show were looking to save some money by maintaining their home rather than going with bigger projects. Window maintenance is one area where homeowners may be able to save money by replacing broken or foggy glass in their windows rather than buying new.

One company, Inst-I-Glass of Detroit, (248) 808-3613, www.instiglass.com, was touting its mobile manufacturing facility that enables the company to repair shattered, cracked or foggy glass right at your home in their specially equipped truck. Insti-I-Glass can handle most types of glass repairs, including insulated glass, low-E, laminated and high impact.

The pent-up demand for home improvements and maintenance is starting to turn into business for many companies. While that is a good sign for all of us here in Michigan, it also means that you'd better get moving with your project. Contractors and suppliers are going to get very busy as spring approaches.

Speaking of spring, if you missed me in Novi you can join me for the Michigan Home & Garden Show at the Pontiac Silverdome March 11-13. For more details, visit www.showspan.com/MHG.

No, you're not getting back that redone bathroom when you sell the place

The worst home improvements for the money

Like many people, you might be under the impression that home improvements are goodinvestments that pay for themselves when you sell your house. You'd be wrong in most cases. Except for steel entry doors, that is.

Such doors tend to recoup 102 percent of the construction cost when a home is sold. A front door made of fiberglass — which actually costs more to buy and install — won't pay off nearly as well. It only pulls in 60 percent of its original cost.

The sad truth is that most home improvements are like fiberglass doors, and won't come close to paying for themselves. Some projects — namely room additions and upscale remodeling — are just plain dollar drains, according to the 2010-2011 Cost Vs. Value report.

The annual survey, conducted by Remodeling magazine in collaboration with the National Association of Realtors, compares construction cost estimates (provided by HomeTech Information Systems) with resale value estimates (provided by members of NAR) across the country for 35 mid-range and upscale home remodeling projects.

In 2005 renovations would, at the very least, recoup their costs on resale. Nowadays almost none do. With home prices tanking the past several years, the return on renovations has suffered, especially when it comes to high-end jobs.

"The first projects to start losing value were the bigger-ticket ones, and even now, when people are doing larger-volume projects, they still don't spend what they used to," explains Sal Alfano, editorial director of Remodeling magazine.

"You're competing against the prospective owner's opportunity to build it [an addition or upscale remodeling] themselves," seconds Elizabeth Mendenhall, vice president of committees for the National Association of Realtors. When it comes to renovations, it's vital to keep potential buyers' tastes in mind, not just your own, she says.

Obviously a homeowner with long-term plans to settle down should remodel however he or she sees fit. Construction costs are still down, and if you want to build that bright pink dream kitchen, have at it. After all, many homeowners are now opting to stay put and update their current homes to better fit their lifestyles.

Just be aware that that decadent kitchen will only retrieve $597 of every $1,000 spent if you decide to list. Other projects sure to lighten your wallet: Home office remodeling, which redeem a measly $458 of every $1,000 spent, sun room additions only $486 and bathroom additions at $533.

These numbers, based on a national average of local comparisons gleaned from across the country, vary relative to each market's values and demands. If you want to know how a project will specifically affect your property's value within your neighborhood, query a local Realtor, urges Mendenhall.

If you're going to shell out money on improvements, focus on your home's exterior. Windows offer relatively decent returns, as do garage door replacements and siding replacements. Still nothing, save that steel entry door, refills the home improvement coffers 100 percent — or even as much as 85 percent. The bright side is these fixes can boost energy efficiency, offer potential tax savings and, when the time does come to sell, add ever-vital curb appeal to your home.

Aspiring sellers would do well to make some basic fixes as well. Forbes reported last year that sellers could improve their homes for buyers more efficiently — and more cheaply — by simply tidying up the rooms and slapping a fresh coat of paint on the walls. Steve Domber, president of Prudential Serls Prime Properties, a real estate brokerage operating across New York state and Connecticut, also suggests replacing old carpets, using neutral colors and bringing more light into the home.

Ahead of the Bell: Housing starts

Ahead of the Bell: Housing starts

Builders are expected to have begun work on more homes in January than the previous month but are still way off the pace consistent with a healthy economy.

The housing industry has just finished the worst two years for new home construction in a half-century. And the pace of building has only gotten worse. In December, builders started work at a seasonally adjusted annual rate of 529,000 new homes and apartments — a drop of 4.3 percent from November and the slowest pace since October 2009.

The consensus forecast among economists is that home construction jumped to a seasonally adjusted annual rate of 535,000 homes for January. The Commerce Department will release the new report at 8:30 a.m. Wednesday.

In a healthy economy, builders start about 1 million units a year. They built twice as many in 2005, at the height of the housing boom. Since then, the market has been in decline.

The collapse of the housing market pushed the country into a deep recession. More than a year after the recession ended, it is still struggling.

Millions of foreclosures have forced home prices down and more are expected this year. Tight credit has made mortgage loans tough to come by. And some potential buyers who could qualify for loans are hesitant to enter the market, worried that prices will fall further.

The flat-lined housing market is weighing on the overall economic recovery. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

The trade association reported Tuesday that its index of builder confidence remained stuck at 16 in February, where it has been for four straight months. A reading of 50 signifies a positive outlook about the future.

The Worst Home Improvements For The Money

Not long ago a new bathroom paid for itself when a home was sold. Not anymore.

Ten Worst Home Renovations For The Money

Ten Best Home Renovations For The Money

Like many people, you might be under the impression that home improvements are good investments that pay for themselves when you sell your house. You'd be wrong in most cases. Except for steel entry doors, that is.

Such doors tend to recoup 102% of the construction cost when a home is sold. A front door made of fiberglass--which actually costs more to buy and install--won't pay off nearly as well. It only pulls in 60% of its original cost.

The sad truth is that most home improvements are like fiberglass doors, and won't come close to paying for themselves. Some projects--namely room additions and upscale remodeling--are just plain dollar drains, according to the 2010-2011 Cost Vs. Value report.

Ten Worst Home Renovations For The Money

Ten Best Home Renovations For The Money

The annual survey, conducted by Remodeling magazine in collaboration with the National Association of Realtors, compares construction cost estimates (provided by HomeTech Information Systems) with resale value estimates (provided by members of NAR) across the country for 35 mid-range and upscale home remodeling projects.

In 2005 renovations would, at the very least, recoup their costs on resale. Nowadays almost none do. With home prices tanking the past several years, the return on renovations has suffered, especially when it comes to high-end jobs.

"The first projects to start losing value were the bigger-ticket ones, and even now, when people are doing larger-volume projects, they still don't spend what they used to," explains Sal Alfano, editorial director of Remodeling magazine.

"You're competing against the prospective owner's opportunity to build it [an addition or upscale remodeling] themselves," seconds Elizabeth Mendenhall, vice president of committees for the National Association of Realtors. When it comes to renovations, it's vital to keep potential buyers' tastes in mind, not just your own, she says.

Obviously a homeowner with long-term plans to settle down should remodel however he or she sees fit. Construction costs are still down, and if you want to build that bright pink dream kitchen, have at it. After all, many homeowners are now opting to stay put and update their current homes to better fit their lifestyles.

Just be aware that that decadent kitchen will only retrieve $597 of every $1,000 spent if you decide to list. Other projects sure to lighten your wallet: Home office remodeling, which redeem a measly $458 of every $1,000 spent, sun room additions only $486 and bathroom additions at $533.

These numbers, based on a national average of local comparisons gleaned from across the country, vary relative to each market's values and demands. If you want to know how a project will specifically affect your property's value within your neighborhood, query a local Realtor, urges Mendenhall.

If you're going to shell out money on improvements, focus on your home's exterior. Windows offer relatively decent returns, as do garage door replacements and siding replacements. Still nothing, save that steel entry door, refills the home improvement coffers 100%--or even as much as 85%. The bright side is these fixes can boost energy efficiency, offer potential tax savings and, when the time does come to sell, add ever-vital curb appeal to your home.

Aspiring sellers would do well to make some basic fixes as well. Forbes reported last year that sellers could improve their homes for buyers more efficiently--and more cheaply--by simply tidying up the rooms and slapping a fresh coat of paint on the walls. Steve Domber, president of Prudential Serls Prime Properties, a real estate brokerage operating across New York state and Connecticut, also suggests replacing old carpets, using neutral colors and bringing more light into the home.

Improve Your Home With a Split Air Conditioning System

With the phase out of the R-22 systems it is more than likely getting close to replace your split air conditioning system. With all of the air conditioning and heating companies that are out there it can be tough to make a choice on what kind of system it is that you will need. For instance should you get a split unit with an electric heater? Or should you get a split air conditioning system with an electric heater and a heat pump? The answer to these questions will actually depend on where you are living geographically.

But the real reason that you should think about a new air conditioning installation in your home is the money you will save in the long run. First off, all of the new air conditioning systems that are manufactured these days come with an energy efficiency rating of at least 13, which is also known as a SEER rating. This is something that you should take into account if you are thinking about a new air conditioning installation for your home.

The higher the SEER rating on your air conditioning system is the less energy that the unit is going to use. Also you are going to see that the higher the SEER rating is on your AC unit is the quieter the unit is going to be also. With that said the units are actually a lot bigger as they go up in SEER ratings. This is something that you are going to have to consider if you have limited space where your old condensing unit is. This usually will have a problem in places such as condos.

When upgrading your air conditioning system make sure that the installers or engineers also replace your duct work and make sure that it is properly sized for the home. You also have to make sure the engineer sizes the unit right for your home. This is a lot more than guessing a tonnage based on just square footage for your home. A lot of this has to do with what type of insulation you have in your attics, what type of roof you have, and what type of material your home is built from. All of this comes into effect when properly sizing your new air conditioning system for your home.

Depending on where you live new air conditioning and heating installations can range anywhere from $4,000 and up. This all depends on how much modification will have to be done to the duct work, if not a complete re-haul of the duct work. For instance if your old unit is an 8 seer, and you get a16 seer air conditioning system installed you are not going to get anywhere near the maximum efficiency of the rated capacity for the new air conditioning system unless you modify the duct work so that you get the proper air flow.

Americans Choose Remodeling Over Moving

Americans Choose Remodeling Over Moving

For millions of Americans, the economy of recent years has forced a hold on the dream of moving to a larger house, relocating to a different area or building a new home.  Some homeowners have beenunable to sell their current property.  Others have been unable to secure a new mortgage due to tighter regulations.  As a result, many homeowners have sought to remodel their current properties – either to suit their own changing needs, or to attract the buyer and price they want.

Ever wonder what your fellow countrymen and women and doing to their homes?  It used to be that residential remodeling activity was reported by the U.S. Census Bureau, but the Census discontinued that survey at the end of 2007.  To fill the gap left by the Census, BuildFax, a division of BUILDERadius, has created the BuildFax Residential Remodeling Index (BFRRI), the only source directly reporting residential remodeling activity across the nation.

The information in the BFRRI is derived from relatedbuilding permit activity filed with 4,000+ cities and counties throughout the country.  Local building departments inspect construction to make sure it meets quality and safety standards; BuildFax is then able to consolidate this information into a central database, which is a tremendous asset to buyers and sellers of property.

The BFRRI reports trends in remodeling activity for the entire United States, as well as for the four major regions of the country: Northeast, South, Midwest and West. Updates to the index will be released in the middle of each month, on the day preceding the Census’s release of new housing starts.

The very first BFRRI, released on January 18, 2011, indicated that remodeling activity has returned to pre-recession levels. Combined with the depressed number of new housing starts, a significant increase in remodeling activity may indicate a more substantial shift toward reinvesting in existing homes over building new ones.

On a regional basis, the South and the Northeast continue to lag behind the Midwest and West.  According to the BFRRI:

• The Northeast was down 1.7 points (2%) month-over-month and down 4.9 points (6%) year-over-year. 
• The South was down 4.0 points (5%) month-over-month but up 6.5 points (8%) year-over-year.
• The Midwest was down 3.0 points (3%) month-over-month but up 3.9 points (4%) year-over-year.
• The West was down 1.1 points (1%) month-over-month but up 4.6 points (5%) year-over-year.

Find out how to continue snooping on national and regional remodeling stats at BuildFax.