It is difficult to see the light at the end of the tunnel sometimes. What I am referring to is, we are in a depressed economy, and most of us have cut back on much of our spending. This is particularly true for those who have homes and don’t feel comfortable spending money while they know that the value of their home has gone down in value. While this is a fact we are currently living with, it is also a fact that we have gone through economic downturns many times. Home prices are based on the same economic forces as other products and services. Price is tied to the supply and demand for homes. The demand for a new home is constricted due to tight lending practices. Yet there is still a demand in the market for new homes. This demand is called pent-up demand. The pendulum will return and we will eventually see prices going back up.
Those who are neglecting their homes now are only going to see a higher cost of repairs at a later time. Material prices and gas prices are on the rise. So, the cost of sending out craftsmen is going up.
If you are pessimistic about our economy and cannot see the light at the end of the tunnel, be forewarned, the cost of services related to maintaining and improving your home will not keep going down. Another reason for costs going up is that there are many craftsmen getting out of the trades due to lack of work. This leaves fewer skilled workers to do the jobs thus decreasing the supply has kept the wages stable. As more craftsman leave the industry, the supply becomes less and the upward pressure to maintain or increase wages persists. The business of running the construction company has changed too as the cost of gas is affecting the overall cost for both travels to and from jobs as well as the cost of delivery of materials to local suppliers.
So what shall one do about it? If you are still working or have a steady income, consider doing some of the basics so that your home does not deteriorate. Perform all required maintenance to protect your asset.
What we are noticing in today’s market is that more of our customers are asking us to perform more of the basic repairs and upgrades. Much is tied to the idea of making the old home look more comparable with the recently built homes. Also, we are noticing our clients selecting improvements for comfort and convenience.
Some are electing to move walls to open spaces, upgrading plumbing and appliances for conservation as well as convenience, new countertops for easy maintenance, fresh paint to preserve exterior wood trim, bar-b-ques for more stay-vacations, and shade covers to cut back direct sun from rear yard exposures.
Whatever your current economic status, note that with less demand for services, there is a good supply of craftsmen and jobs are progressing at a fast pace.