Why 2011 is the Right Time to Renovate

NOW THAT THE DOWNWARD SPIRAL OF THE ECONOMY HAS STABILIZED, there has never been a smarter time to begin a home renovation.

Market indicators and lifestyle changes make home renovation a worthy investment candidate, and one that can bring an immediate increase in home value and owner satisfaction.

Although some analysts and pundits claim the worst of the housing crisis hasn’t yet arrived, that property values may continue to drop, and that we won’t see a return to home values equal to the peak of the bubble until 2015, they don’t seem to be looking at the crystal ball that includes Long Island. They also seldom factor in home renovations, and reports like these have the public frantic that we are in the midst of a Great Housing Depression.

At the Long Island Home and Landscape Show, held at Farmingdale State College only two short weeks into 2011, the atmosphere among homeowners

and exhibitors was anything but depressed. In fact, it was upbeat. This show, one of a string held on the Island during the year, features local home improvement vendors, designers and re-modelers and is an excellent market indicator to real, local conditions.

“The last two years were small projects, but all of a sudden, things are getting bigger. Now we are doing a lot of second stories, adding rooms, extensions and new spaces for parents who are selling their houses and putting that money into living with their children,” said Peter Cacoperdo Jr., owner of Noah Construction and Builders of Sayville.

Outside the house, Greg Picca, owner of GP Landscaping, agrees. “The biggest thing people want now are outdoor living rooms, fireplaces, pergolas and entertainment spaces.

long island house renovation

This classic, 1960s split ranch in Sands Point was clad with aluminum siding and cheap windows before undergoing a major renovation by F. C. Freyvogel General Contracting of North Bellmore. Frank Freyvogel, owner and president of the company, said the owners bought the house for location, but it had very little appeal as part of the larger neighborhood. Since local codes wouldn’t allow for a major expansion, a knock- down wasn’t feasible, the decision was made to add a floor to increase space. Starting with several designs drawn by an architect who focused on the owner’s fondness of French Country homes, Freyvogel then studied the Gold Coast homes of the Guggenheims for inspiration and attention to detail. Eventually a single, cohesive plan was created with the goal to not only build a home with country appeal, but one that incorporated details of Old World craftsmanship, including true, post- and-beam interior timbers and hand-quarried stone from New England used as functional windowsills.

The finished renovation turned a relatively small house with cramped rooms into a spacious, flowing home with bright, airy spaces and clearly defined living areas. Freyvogel worked with the existing split-level interior, but combined several rooms and closets into one master suite on the lower level. What started out as three bedrooms and a bath now is a master bedroom, bath, walk-in closets and oak-paneled study. On the main floor, the ceilings were opened up into a cathedral, and a balcony with wrought-iron railings and oak timbers leads to a curved staircase. The kitchen, dining room and living room are also on this level. Upstairs, in the new addition, additional bedrooms and a bath were added for the homeowner’s children and guests. Freyvogel describes the fully finished basement as “the ulti- mate man cave,” given that it is a great space for entertaining, with a drop-down projection screen television, rustic stone fire- place and wet bar. Also downstairs are all mechanicals, but these remain hidden by custom paneling.

People are spending more money on these now because they aren’t going on as many vacations. Instead of just lawns, people want living spaces built into their landscapes.”

In a major study released early this year by Harvard University’s Joint Center for Housing Studies, the past decade of roller-coaster remodeling starts and stops will give way to slow, stable growth in the coming years.

“Metropolitan areas with rising house prices, older housing stocks, higher incomes and home values, and a larger share of upscale remodeling expenditures are well-positioned for an upturn in remodeling activity,” says Eric Belsky, managing director of the Joint Center for Housing Studies.

That places Long Island as a major player in the coming years. Home sale data, prepared by Miller Samuel Real Estate Appraisers for Prudential Douglas Elliman, showed that in Q3 2010, Nassau North Shore price indicators surged with an increase in high-end sales. In fact, during that quarter, the average sales price was $986,621, with median prices of $795,000.

Also projected is the end of discretionary projects, those improvements that would be nice, but not totally necessary. Instead, the real focus is expected to shift towards additions that will have lasting value, like major system replacements, in- law and master suites, and kitchens, with the caveat that all but gone are the days of six-figure kitchen remodels.

“Everyone’s shopping price, looking for good cabinets at a reasonable price,” said Dave Gallagher, manager of Kitchen Bath Distributors of Bellmore. “The high-end kitchens have definitely dropped off, but that isn’t to say large kitchens are out. People are looking for space—tearing down walls between the dining room and the kitchen, for example.”

The banks are lending again, interest rates are at historic lows, builder rates are more competitive than ever, and report after report that has been released this year indicates that the remodeling industry will lead the next housing boom. Yes, 2011 is indeed the best time to renovate your home.

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