2013-2014 Cost vs. Value: Remodeling Pays Off Big Time
As existing-home sales and home prices make remarkable strides upward nationwide, remodeling projects are also continuing to make a comeback in a big way. This is the second year in a row that all 35 projects in Remodeling magazine’s Cost vs. Value Report saw more home improvement dollars recouped upon resale of a home than the previous year. Existing-home sales reached 5.02 million in 2013, a 9.1 percent increase from 2012, according to the National Association of REALTORS®. Home prices also rose in 2013: Existing homes commanded a median price of $197,100, up 11.5 percent from the 2012 median price of $176,800. This is the largest price gain since 2005. Also for 2013, the cost-value ratio of remodeling projects nationwide averaged 66.1 percent, up 5.5 points over the previous year — which is, like median price, the largest increase since 2005. Read more.