Your current home is no longer working for you — at least in its current state. However, you’re not sure if you want to sell or stay put and renovate it to perfection.
In May 2022, the median national home price for active listings surged to an all-time high of $447,000 — an annual growth rate of 17.6% — according to Realtor.com. However, HomeAdvisor data revealed renovations and remodels average $47,825, which is also a hefty investment.
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“Right now, the prices are skyrocketing and will affect both roads — renovating and buying a new home,” said Amy Kite, a real estate agent and owner of The Kite Real Estate Team, based in the Chicago area. “You’ll have to run some figures and decide what one makes sense for you.”
If you’re serious about remodeling, she said you’ll also need to consider the availability of materials you’ll need.
“Construction supplies are limited and you might not be able to purchase the items you want for your reno, even if you go down that road,” she said.
However, she said purchasing a new home comes with its own unique challenges — including potentially being outbid in your area — which makes this decision more difficult than it once was.
“You aren’t given the luxury to browse a number of homes and have a pick of the one you’d like,” she said. “It’s a competitive market and you might have to pay more than you’d imagine getting the home you’d like.”
Since the market is difficult in many areas right now, she said many people are no longer finding the process of buying a home enjoyable. Therefore, she recommended heavily considering a