CINCINNATI - It’s been a year of growth for many industries, coming out of a recession, and while remodeling and construction companies see an uptick in interest, they wait to see if that interest will translate into dollar signs.
Household spending on remodeling, which started to rise again in the fourth quarter of 2010, is projected to make a big leap through the first half of this year, according to the latest estimates by Harvard’s Joint Center for Housing Studies.
And local remodeling company owner agreed to that uptick from last year’s sales.
Neal Hendy, president of Neal’s Design | Remodel, said last year, his company saw a 32-percent uptick in remodeling, from sales from year before.
This year looks promising, he said. There is no question that the interest in remodeling and designing is back, but the debate is whether or not that will in turn, translate into dollars for 2011.
“There is an uptick of interest and pinned-up demand.”
But there could be a limitation on that in terms of how many people are truly signing on the dotted line. It depends on the confidence of the client, he said. And the lack of confidence to remodel does not segregate. Hendy said he sees that hesitation when it comes time to remodel in both high-end and low-end clients.
“Extremely optimistic, but still early in the game.”
In fact, three weeks ago at a show, he spent a good amount of time talking to people and taking down names. Neal’s Design | Remodel has stayed busy from interest, he said. Now he’s waiting on results.
“[It’s] like a light switch that has come on in the past 60 days that wasn’t on the last couple of years.”
Paul Bauscher, president of Bauscher Construction & Remodeling, Inc., who is also the vice president of the Ohio Valley Chapter of NARI (National Association of the Remodeling Industry), said not everyone has seen the uptick, but rather mostly companies that have been around for a while.
Starting last fall, he said, his company of 38 years, saw an uptick and this year that has continued and gained a little bit of momentum.
Even though the indicators are good now, no way to tell how it will pan out, said Hendy. Cincinnati is the No. 1 market place in country this year he said.
Therefore, “if it should happen somewhere, it should happen here.”
While, historically the business owner said his company would do a lot of room additions, bathrooms, kitchens, kitchen remodels have changed over the past year.
Instead of taking out cabinets and starting over, he said homeowners would dress up the kitchen for half the cost. Maybe only new appliances and countertops, but not a complete remodel, he said.
The difference?
Remodeling partial vs. total kitchen--> $20-30,000 v. $50-60,000
This year, he said, he is still seeing some partial remodels and makeovers; however, some people are moving toward the entire kitchen remodel.
Bauscher said his clients, who mostly go for kitchen remodels, are going smaller, but sticking with quality.
“[It’s the] better not bigger mentality.”
While they are scaling back the size of the project, they are still looking for quality, like granite. In fact, he said, granite is down in price right now.
Bargain shoppers beware-
“The industry is on sale,” said Hendy.
But buyer beware.
Many in the business are moving into different roles to maintain business, but they are not necessarily masters of remodeling, he said.
“If there is ever a time for a buyer to beware, there’s never been a bigger one.”
All in all, he said, it’s a good time to buy and remodel.
One constant over 30 years, Hendy said, is combined living remodeling. Furthermore, he has seen an increased interest in what may better be known as “mother-in-law suites.”
Parents are moving in with their children as opposed to an expensive nursing home or retirement village. This way, he said, they are part of the family, but still have their own space. Plus, he said, it adds value to current home.
Neal’s Design | Remodel and Bauscher Construction & Remodeling, Inc., will be showcased among more than 400 exhibitors beginning this weekend at the 39th annual Fifth Third Bank Cincinnati Home & Garden Show® presented by the Cincinnati-Northern Kentucky Honda Dealers, which takes place Feb. 26-27 and Mar. 2-6, 2011 at the Duke Energy Center in downtown Cincinnati.
Brian Smith of Smithscapes Landscape Service said he has seen a big rise in requests for improved outdoor living spaces.
More customers are interested in adding new items to the patio area including fireplaces, outdoor kitchens and pizza ovens.
"When you have the outdoor living spaces that just sets your home apart from the others at the time of sale. That's what people are looking for the outdoor living spaces, the patios," said Smith. "It just sets your home apart from the others on the block."
“The Fifth Third Bank Cincinnati Home & Garden Show has become the annual place to start any type of home improvement, remodeling landscape or garden project,” said Chip Hart, CEO of Hart
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