Time For Remodeling in 2016
The remodeling of existing homes has bounced back from the housing bust and has now surpassed its pre-crisis level, according to the Urban Economics Lab Index, a newly launched index produced by BuildZoom and the MIT Center for Real Estate. The residential rehab business has grown to an estimated $300 billion a year, according to the index. Yet, “despite its size, and even though it is a good indicator of consumer confidence, residential remodeling is generally overlooked,” says Issi Romem, chief economist of BuildZoom, a resource for remodeling and construction services. “The existing focus on new construction imposes a view of the economy that overemphasizes conditions in high-growth metro areas, and in particular on their fringe, where new home construction is concentrated.
Remodeling and Economy
Remodeling provides a more evenly-distributed view of the economy, that is more likely to represent conditions in the nation as a whole.” New-home construction remains nearly 61 percent below its 2005 pre-crisis level, according to the index. On the other hand, remodeling of existing homes has fully recovered and has climbed 3.4 percent above its 2005 level.
Hard money loans for rehab projects are a great option for financing. Traditionally, banking options require borrowers to wait long periods for financing as it goes through several desks of underwriting and approvals. Additionally, they will requests document after document, financial statements, high credit scores, paychecks and W2’s for several years. This process can take several months to push through and doesn’t guarantee approval. Hard money lending offers quick financing for those who don’t have time to sit around and are ready to get to work! Hard money loans require minimal documentation and are flexible when it comes to credit and work history. In fact, if you have hard assets, the process can move rapidly and you can be on your way in no time.