As whispers across the industry point to a remodeling surge, a new study finds homeowners are more likely to utilize HELOCs to fund these projects. HELOCs or Home Equity Lines Of Credit, are showing more promise as interest rates for homes are slowly dropping.
“A single Fed cut won’t thaw the sales market overnight, but it could still act as a powerful catalyst by channeling money into home improvements instead.” said Allaire Conte at Realtor. “That money, in turn, could be a lifeline for the housing market of tomorrow.”
A new poll from BathCalculator.com supports this claim. A poll of 343 participants on the question, “How do you plan to pay for a new bathroom?” Resulted in a 57% response of planning to use HELOCs. The other results followed with 26% pulling from personal savings, 10% looking to home equity loans, 5% placing them on credit cards and 3% taking out personal loans.
“These results show that homeowners see bathroom renovations as a long-term investment,” said Jason Keeley, owner of BathCalculator.com. “Using a HELOC or home equity loan suggests that people are not only confident in their home’s value but also in the stability of the housing market overall.”
