There are a lot of rumors flying about when it comes to home renovation pricing, financing, and trends. In this video CRATE Founder + CEO Scott Monday clarify the current remodel market trends, covering such topics as material availability, price escalation, and options for funding your remodel project.
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“Hey there, Scott Monday with Kitchen and Bath Crate. Today I wanted to give you what I call a remodel market report. We get about 100 to 150 people calling in per month about kitchen or bathroom remodel projects. What we’ve done is put the various questions that we get asked into a few categories. I want to spend a few minutes telling you what we’re seeing both in the local and the national remodel market.
So let’s jump right into the Spring 2022 remodel market report. The first thing we’re seeing in the current remodel market is definitely something that you’ve heard about, and that’s supply chain issues. While those are real situations that we’re facing, it’s not paralyzing. To date, I can only remember one job that has actually been delayed due to a supply chain issue. It was specifically related to some shower glass enclosure hardware. But what I wanted to let you know is that while there are supply chain issues, contractors, including ourselves, are still able to get materials. It comes down to making sure your contractor, whether it be us or someone else, is buying materials early in the process, checking them when they arrive to make sure they’re not damaged, and making sure they’re just a few steps ahead of the project. Bottom line, yes, there are supply chain issues, but as of this moment, they are not paralyzing.
The second thing we’re seeing in the market is once again something you’ve probably already heard, and that’s prices are escalating. Not only have prices gone up of late, but there’s no prospect of them going down. Material prices, labor prices, and overall market demand affect pricing. Material prices have gone up due to various factors, and labor is scarce. Compensation structures have increased, and high demand in the remodel market keeps prices steady or increasing.
The last thing we’re seeing is that financing is still pretty cheap. Interest rates have gone up about a percent or a percent and a quarter in the last few weeks or months, but it’s still a good value. Customers often use refinance money from their homes or home equity lines of credit. Financing and interest rates are rising slightly, but it’s still a good value, especially when considering price increases.
If you have further questions about your particular situation, give us a call at 888-995-7996 or log on to kbcrate.com. You’ll find a lot of articles and blog posts about these topics. Feel free to reach out if we can help in any way possible. Have a great rest of your day.”
