A home for sale in Appleton, April 19, 2023. PC: Fox 11 Online
GREEN BAY, WI (WTAQ-WLUK) — Relocate or renovate? It’s a decision that’s becoming easier for many homeowners given the current challenges in the housing market.
Real estate platform Redfin found two thirds of homeowners recently made renovations instead of moving. 71% plan to make renovations in the next year.
Jessica Hall and Jeff Jones of Green Bay have been casually looking for a new house for the past four years.
“I feel like there’s a lot of houses on the market but based off where we’re coming at as far as interest and price it’s hard to want to make that decision to jump to something that is her priced and higher interest,” said Jones.
The couple is still looking but has also been making improvements to their current home: a new roof, windows, garage doors, and more.
“We’re very fortunate I think to be in the situation we’re in where we don’t have to move,” said Hall. “What we have serves us and there’s things that are annoying, but we do have a safe, comfortable home in an area we like.”
Their realtor, Alex Young of The Bow Tie Group, says he’s seeing plenty of people in similar situations.
“Buyers are really on the fence right now,” said Young. “Some still are on the market, trying to shop, but the interest rates and the lack of inventory is making it tough.”
One of the main reasons people are staying put is the interest rate on their mortgage. About 80% of homeowners have a rate that is lower than current levels.
“With interest rates where they are, you’re definitely seeing an influx of people wanting to make improvements to make their home their own,” said Travis Oldenburg, general sales manager at Macco’s Floor Covering Center.
Oldenburg says in the past year Macco’s has seen an increase in customers updating flooring in more than one room.
“You’re seeing them truly invest in their home with mid- to higher-end products,” said Oldenburg.
Whether those renovations will see a return on investment if the home eventually is sold depends on what they are, according to Young.
“My recommendation for clients is the things that are going to be less expensive, whether that’s going to be decorating, deep cleaning or de-cluttering, you’ll always see returns on investment there,” said Young.
Young says a majority of clients making upgrades to their current homes are for short-term comfort, still hoping the right home at the right price will come along.
“We’d definitely move if the right house came up, but in the meantime we realize we’re going to be here for we don’t know how long, so we are putting money into the house,” said Hall.
The most recent housing report for Wisconsin showed home sales were down in August compared to one year ago. However, home sales in the state are on pace to increase for a third straight year.
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