Home Improvement Advice From One Friend to Another
Every homeowner has remodeling projects bouncing around in their minds. Some of them actually make it to a discussion on what we call at home a ‘need to know’ basis. I personally have come to learn that the projects my wife and I actually discuss are just the tip of the iceberg. And what I ‘need to know’ is not very much.
Nevertheless, there are forces at work that make timing a very relevant and practical part of the discussion for those projects that are on your 5-10 year or sooner horizon.
- We have witnessed a significant general slowdown in our industry, which has caused all construction material suppliers, and in turn, their suppliers to significantly cut back inventories. When demand improves, supply will be slow to catch up, and the natural supply and demand equation will push up prices. We've seen it already in lumber prices and trim material, and it's a safe bet that labor will be right behind materials.
- The other relevant timing factor involves interest rates. The government has provided a nice soft pillow for our economy, and specifically the banking sector, to lay its head. The feds have manipulated mortgage rates down to provide relief to those having a tough time making their payments. And to encourage folks to buy new homes. This has been successful in providing some stability in the housing market. However I think it is safe to say that rates will only be held at this level for so long before the government has to let the market set the rate again, and there's pretty much only one direction for it to go....up!
So the bottom line is this: the cost to remodel a home is as low as it will be for the foreseeable future and the cost of borrowing money is as low as it will be for the foreseeable future. These conditions exist right now, but they may be fleeting.
Moss has weathered the downturn well, and while we are always here to sign up customers and keep the business moving forward, we like to do so with as much bang for our customers buck as possible! So we pass this information on to you as we would a friend at a dinner party. Hopefully it is helpful as you navigate your own iceberg.