As we have discussed in our work-from-home blog post, the pandemic has resulted in many people staying at home for a majority of their time. This new reality has provided a lot of time to think about the kitchen remodel you have been putting off for awhile. Or perhaps you finally have the time to decide on what kind of a porch you want for your backyard. Nonetheless, 2020 has been a booming year for many contractors and the demand for renovations has only been growing. This development has brought many companies to the forefront and also causing shortages in materials.
Booming Industries
As of October 26th 2020, a company called Poolcorps that sells swimming pool supplies and outdoor amenities has seen their stock at its highest point since 2003. Many other similar home amenities have been going through the same spike in their sales. With many staying at home for work and school, families are not going out to meet their wants and needs for physical exercise, eating out, and vacationing for their annual holiday. This has led to additional available funds that can be allocated towards potential house projects. These projects include improving home kitchens, adding room for gym equipment, and renovating their basements/backyards for a private space meant for leisure activities. Companies like Home Depot and Lowes have both seen a spike in their sales in the past year, with many people buying supplies for renovations and DIY projects.
Shortages
A consequence of widespread renovations has been a relative shortage of contractors and materials. According to the National Association of Home Builders, lumber prices are up 134%. This has been a result of increased demand and natural disasters (Westcoast wildfires, Hurricane Laura, etc.) causing a shortage in available lumber. The recent renovation boom has also filled out the calendars for most contractors. Does this mean that you are out of luck for not cashing in earlier? Absolutely not. It would be wise to sift through as many possible bids for your projects and to calculate a doable budget. Given that there will be long term effects from the pandemic, there will be a lot of opportunities for investing into personal house improvements and renovations within your real estate portfolios.
East Bay Realty
Our realty team has over 50 years of combined experience with overseeing renovation projects and creating budgets. We have a network of contractors and resources that allow us to bring you the most affordable bids for high quality renovations. We take into consideration every possible need for your house and use our prior experiences to propose the best possible return on investment before putting your house on the market. Call us today to book a free consultation for your house!
510-344-6368
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