It’s no secret that the current housing market will remain largely lethargic for an extended period of time. People will continue to refrain from making big ticket purchases, which especially holds true for real properties. This could spell unpleasant news for developers, but surprisingly, or may be not so surprisingly if you really think about it, it will also create ample opportunities for general contractors and renovators as homeowners will opt to expand or enhance the properties that they already own.
While property values stagnate along with the rest of the economy, people will move less often and will own their house for longer periods. They will also increasingly spend more time at home. So the big question is, why not make it a happier time then?!
As a general contractor in Orange County, CA, we’ve been noticing that many home owners now prefer to upgrade their homes and stay where they are. We are also noticing that the level of sophistication of today’s homeowner’s tastes began to show a dramatic change. Consumers started asking us for materials with more cosmetic appeal and extended longevity. They want to enjoy their homes now and also make sure that they put themselves ahead of the crowd when it is finally time to sell.
Here are some of the specifics of what we’ve observed so far:
Increased length of ownership due to stagnating property values
Homeowners opt for happier time now and also put themselves ahead of the crowd when it is time to sell
Small contractor bankruptcy is on the rise
Contractor landscape is changing to reflect the new market reality – a direct result of flight to quality by the homeowners
Fly-by-night contractors are still out there, so the homeowner needs to exercise extra caution before inviting a contractor into their home
Natural high quality materials and high-end “green” technology are gradually entering homes
High-end remodels and renovations when done right create instant and lasting equity