Tuesday, January 22, 2013

Kitchen Remodels in Dallas May Be Back - North Dallas Home Value Climb

North Dallas Home Values up over 10% for the Year - What Effect on Remodeling?

Home values are jumping up and interest rates are still low.  Now may be the perfect time to add on to your Dallas home or remodel your kitchen. 


According to Zillow.com, the North Dallas area is seeing home price increases more like the boom years of the mid 2000's with the far North seeing 15% average increases in the last 12 months, and those closer to town going up 10%.  Other areas of the Dallas Metro are level or beginning to trend up, as well.

This is certainly good news for those who bought at the top, or refinanced in the 2007.  But it is especially good new for those who have needed to fix up their kitchen or bathroom or maybe add a new room to the house.  While it may be possible to pay for a $30,000 kitchen remodel with your American Express Card or from savings, most folks seem to prefer to use their equity as the smart way to finance home improvements.

With mortgage rates at historic lows, homeowners who have equity get a double benefit.  Depending on the interest rate on your current loan, you might be able to refinance your existing principle plus enough to add that room or refresh the kitchen, and end up with payments at the same amount as before.
A typical home in North Dallas might have a mortgage of $200,000.  If your current interest rate is at 4.5%, your payments are going to be in the neighborhood of $1000 a month.  If you were to add a $40,000 remodel to that home, thereby increasing your mortgage to $240,000, but get a 3.4% mortgage, your new monthly payment would be about $1000.00.
 
If the remodel adds at least $40,000 to the value to the home, you now have the same net worth, the same payment, and a more beautiful home.

Many homeowners in Dallas haven't realized that home prices are headed upwards.  Speculators have entered the market, foreclosures are getting processed through to new owners, and the upward pressure on prices is helping those who were barely upside down to get some hope or to be in a position to sell.  This in turn is creating more demand with very little supply.

If you would like to talk to Mike Sepik about the possibilities for any type of remodel for your Dallas home, you can reach him at 214-533-0176.  You can also see the company website at http://uniquehomebuild.com

 
 

1 comment:

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