House prices in the US are looking extremely dangerous at the moment; they have been skyrocketing across the country since the start of the COVID-19 pandemic. So much so, that even US policymakers are becoming concerned about the price increases, for both homeowners and renters, as it is the most wide scale boom in house prices the country has seen for at least twenty years.
A popular method of increasing the value of one’s home is engaging in home improvement. This activity is commonly divided into several unofficial types (including basic improvements, curb appeal, value-added). However, not all home improvement is created equal, and it is common for upgrades to not even pay for themselves, let alone send the property value of the house soaring. This is why it’s important to renovate strategically.
Increasing Property Values in the US
Property values in the US just continue to increase in recent years; in 2020, the market gained about $2.5 trillion in value, which is the most in a single year since 2005, according to a new Zillow analysis. The U.S. housing market is now worth close to a total of $36.2 trillion.
Price growth in April of 2021 accelerated at the fastest rate the US had seen in the last thirty years. The national home price index of S&P Case-Shiller, which collects data across all nine of the US’s census divisions, rose by nearly 15% a year in April, data has illustrated.
The fact that this followed a 13% annual hike in March – “the highest reading in more than 30 years,” according to the report. Meanwhile, the 20-city composite, which covers US metropolitan areas including Dallas, Miami, New York and San Francisco, rose by just under 2% compared to the previous month and nearly 15% annually.
Such erratic sales have not only been limited to these areas, and in actual fact others have experienced even greater levels of it. Redfin, an online real estate agent, has indicated that its statistics illustrated the median home prices in Austin, Texas, have risen 40 per cent year on year. Furthermore, areas such as Arizona experienced price increases of almost 30% in the same length of time. In Detroit, Michigan, prices have risen by nearly 60%.
Cause and effect in this scenario is quite tricky to establish in this scenario, but a big contributor to the rise in house prices is the large amount of renovations that people are engaging in at the moment to remodel their properties before they organise their sale.
Products To Increase A Property’s Value
The Basics
This category of home improvements includes ensuring everything a buyer expects when they buy a home is in working order, such as gutters, a roof that doesn’t leak and solid floors and walls – to name a few. Plumbing is also a fundamental one, though in many upscale properties, it might be a ‘basic’ requirement to have a minimum number of bedrooms, bathrooms or whatever amenities are common in the neighbourhood.
Curb Appeal
‘Curb appeal’ refers to the products that will improve the property’s appearance to prospective buyers when they first arrive (i.e.typically those related to the front of the house). Investing in a well-groomed lawn or pretty landscaping and fresh paint are included underneath this branch.
However, one must be aware that this group of improvements will not add substantial money to the sale price of the property, though they will help it get sold faster. It is for this reason that when engaging in curb appeal projects, ensuring they are economic is a top priority.
Value-added
These projects add a considerable bonus to a property’s price tag, though may require a significant initial investment on your part. This could include new sliding, replacing the countertops in the kitchen, or refurbishing windows.
The Outdoor Living Structure Market Report elucidated an interesting mini-trend that is occurring at the moment surrounding “outdoor living”; in the US this concept dominated the market with a revenue share of over 40% during 2020, according to the report. That being said, those looking to increase the value of their house in a palpable way should consider companies that specialize in the manufacturing and installation of covers and enclosures, such as Alumicenter Inc.
The services a company such as this can provide are useful for elevating and otherwise improving one’s outdoor living space, allowing for a higher property value. The Equinox louvered is one of Alumicenter’s most popular products. This is because it’s built to last, and is far more durable than standard patio covers. It’s functional and aesthetic.
Closing Remarks
On balance, there are a number of ways that a person may increase their property value, but not all renovations will result in a lucrative return, many will not even pay for themselves.This is why homeowners must not just engage in improvement on a whim, each one must be for a reason. This reason may be appealing to a market trend, such as the ongoing “outdoor living” fad, which could prove extremely lucrative for many people deciding to do so.
