Monday, March 2nd, 2015
It is not a great time to be in the business of selling homes. But fixing them up? That’s a different story.
The Commerce Department last week said that builders in January sold new home at the highest level since 2008, but still well below the levels in the 1990s, much less the early 2000s. These numbers came on top of disappointing January existing-home sales figures from the National Association of Realtors.
In contrast, the home-improvement industry is doing well. Home Depot shares surged last week after they posted strong fourth-quarter results, and Lowe’s results also topped analysts’ estimates. Commerce Department figures show that people are spending as much money on home improvement as they were in 2007, before the last recession.
The strength in home improvement sales amid continued weakness in home sales represents a significant break in the trend that existed up until a few years ago, when the two were more closely related.
Rather than buy their dream home, people are trying to make the home they already own look more like it.
If you or someone you know needs help financing a home improvement project then look no further. Keegan Mortgage provides home finance solutions for energy efficient improvement loans as well as renovation and construction loans.