After a slump in spending, homeowners are starting to remodel again, according to a recent a remodeling report and one local contractor.
“Customer interest has increased dramatically over the last 60 days,” says Tom Vitale, owner of Oak Hill Building & Remodeling/VCI Inc. “A lot more homeowners are starting projects or are considering renovations, everything from master baths to second-story additions.”
In taking the pulse of the industry, the U.S. Remodeling Activity Report finds more remodeling permits were issued in the second quarter of this year, compared to the same time last year.
What’s notable about the projects is their size. The size of the projects is 20 percent greater than during the second quarters of 2007 and 2008, according to RemodelorMove, which put together the report.
Homeowners in the Northeast and Southwest are seeing the greatest recovery, the report says.
The American Recovery and Reinvestment Act of 2009 can be credited with assisting the turnaround. The federal stimulus plan offers tax credits of up to $1,500 for energy-related home improvements.
Vitale said the stimulus money is not the only thing driving the improvement.
“The markets are recuperating and interest rates remain low,” Vitale said.
Overall construction costs also are down. Vitale said those costs include materials for large-scale jobs, such as additions and kitchens, and the costs of subcontractors.
“We’re getting better pricing from our subcontractors, and that’s savings we pass along to the customer,” Vitale said.
“Anyone who’s thinking about remodeling has the opportunity to benefit from the end of the recession. Pricing is at an all-time low.”
The savings can add up to 15 to 20 percent, Vitale said, adding that the deals probably won’t last forever.
“I feel we’re going to have a real rebound in springtime.”




