Bubble or Boom

Posted by: Cathy Follett, President of PRO New England, CEO of Renovisions

As we continue to rebound from covid-19, new research from the National Association of Realtors (NAR) reflects a historic shortage of housing inventory. Troubling as this may seem, there are not enough homes to accommodate the long-term demand for homebuyers.

If that is not enough, a report by the Harvard Joint Center for Housing Studies recently found that due to the strong demand, limited housing supply, and unbelievably low-interest rates right now, the home prices have escalated so quickly that a home price ‘bubble’ is arising. As remodelers and allied trade professionals, we rely on the adequate inventory of new and existing homes to provide opportunities for homeowners to invest, which in turn will fuel our revenue stream. So, how will this shake out? Will prices come down? stop appreciating? or is this the new normal for the price of homes?

In the meantime, many of our clients continue to work from home and seek to upgrade and expand their surroundings while this housing frenzy is in full force and we’re experiencing a ‘boom’ in our remodeling industry. It’s no surprise that Houzz reported that last quarter was the busiest quarter since 2015 for residential construction professionals. However, the robust activity is not without challenges that I’m sure you are all experiencing at some level. Despite the uptick of work, we are dealing with supply chain delays, product, and material cost increases, and what I think is the most critical obstacle, labor shortages.

Would you like to weigh in on this subject and other similar issues that face our industry?

Why not join one of our PRO-NE Remodelers conversations via Zoom, Thursdays on November 18th, and December 16th at 4 PM-5:30 PM. Please Register at PRO-NE.org/events

We are excited to share that the Women in Remodeling Event (WIRE) will be an In-Person event this year to be held on November 16th at The Lyman Estate from 1:30-4:30 PM with a presentation by Erika Mosse from PRO Remodeler Magazine. Please register at PRO-NE.org/events.

 

“Permanence, perseverance, and persistence in spite of all obstacles, discouragement, and impossibilities: It is this that in all things distinguishes the strong soul from the weak.” –Thomas Carlyle    

 

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