When the housing bubble popped in 2008, a lot of things were put on hold. People looking to sell their homes decided to wait, those who were buying could not get the mortgages they needed, and those who were considering improvements to increase the value of their home were discouraged.
However, home prices have recovered substantially in the last 18 months or so, rising to the levels they held in mid-2004 and increasing at the fastest annual rate since February, 2006, before the bubble broke. In fact, the 20-city composite – a number tracking the average home values in 20 major metropolitan areas in the US – rose by 12.4% year over year for the month of July, and since March, 2012, that composite has increased by a total of 22.7%.
The message? Homebuyers are back and competition is starting to get fierce. With mortgages readily available, home values increasing, and the economy continuing to improve, the market is changing rapidly, and for a homeowner like you, that makes now a perfect time to reconsider window renovations.
Refinancing is back in a big way. Now that home values have increased there is equity available again for home remodeling projects like whole home window and door replacement. Homeowners that didn’t qualify for a refinance just a few months ago are now able to lower their rates, combine a first and second mortgage, or pull cash out for projects.
The Value of New Windows in Your Home
I’ve been in this industry for more than twenty years, and one of the most common reasons people cite when we install new windows for them is the value it adds to the house. It’s hard to justify that kind of move when home values are less than you paid for the property, but if they increase and the difference those windows can make is big enough, it becomes a viable option.
Here’s why installing windows can have such a big impact on your home’s value:
- New Windows Beautify the House – New windows look great and can add a lot of style to a home, modernizing and improving its overall appeal both inside and outside.
- Modern Windows Are Energy Efficient – New windows, especially double and triple pane windows, are extremely efficient, cutting down on the nearly 30% of heating and cooling costs each year by a “leaky” window.
- Window Installation Is a Project New Homeowners Avoid – Window installation is a major project that a new homeowner may not prioritize, but that will be valued if done in advance.
Zillow estimates that new windows have an average recuperation value of 80%. So the value of your home will increase almost enough immediately to cover the cost of installation. When you factor in the energy saved after installation for the remaining years you live there and the current rate of appreciation in home values, you will more than make up for the cost in just a short period of time, a substantial improvement from where home values were just 2-3 years ago.
Deciding When to Install New Windows
If your primary goal is to improve the value of your home for a future sale, now is the ideal time to install those windows. As home prices continue to increase in major metropolitan areas at steady but stable rates, and as the quality and value of new windows only increases, they become that much better of an investment.