Remodeling Magazine has issued its 2015 “Remodeling Cost Value Report.” This report is designed to give homeowners and contractors a breakdown of the return they can expect from their home remodeling projects and how that return will affect the overall resale value of their home. This report is released each year and often contains information about new remodeling trends which help homeowners understand what potential home buyers are expecting to see in an up-to-date property. Projects are broken down by type (kitchen, bath, exterior), cost (affordable, mid-range, upscale) and expected return.
The latest Cost vs. Value Report’s overall cost-value ratio ended two years of gains by slipping to 62.2% for 2015. That’s a 3.9-point drop from last year but this is still the second-best number in the past five years.
This Cost vs. Value Report, which compares changes in job costs with Realtors’ perceptions of what those jobs bring to a home’s price at resale, reflects the many mixed messages delivered by the housing market in 2014. In housing, it wasn't until October before monthly sales of existing homes finally topped their year-earlier numbers, and the increase in median price paid for a home dropped by roughly half between last winter and last summer, according to the National Association of Realtors. New-home sales also were lackluster.
That less than stellar performance may have influenced Realtors nationwide when they predicted in fall 2014 that the boost a remodeling or replacement project would bring to a home’s resale value. Compared with the previous year’s survey, the Realtors increased by up to 11.6% the value of 17 projects, but they reduced 18 projects’ predicted payback by as much as 8.32%. The average change was a gain of just 0.29%.
Window replacement projects are among the higher ROI projects in this year’s report in addition to stone veneer-, decks-, entry door- and garage door- replacement projects that collectively generate an above-average cost-value ratio. Its important to remember that some markets perform better than others and that many variables influence the values.
The report breaks down projects on a regional basis so that homeowners across the country can understand what to expect from their surrounding market. View the map here.
Information presented as compiled in the Remodeling 2015 Cost vs. Value Report (www.costvsvalue.com)