Homeowners are once again devoting time and money to home
improvement projects, at least according towww.ServiceMagic.com.
Service
Magic is a Web site designed to connect homeowners with pre-screened service
professionals.
The ServiceMagic.com home remodeling and
repair index for the third quarter of 2009 found that there was a 14 percent
increase in homeowners hiring home professionals with an emphasis on remodeling
projects.
Economic challenges and limited availability of
credit lines in the preceding four quarters forced consumers to reevaluate
spending, including the method of payment, leading to less financing and more
cash-in-hand transactions for discretionary projects, the company said.
Results
from Service Magic’s quarterly consumer sentiment survey indicate that of the
67 percent of cash-paying homeowners who took part in a remodel or addition
project, 85 percent actually preferred this method of payment over financing
(15 percent) or using a credit card (7 percent).
For the
first time in 2009, ServiceMagic.com reported an increase in requests for
cleaning and maid services, a category that the company said is a telltale sign
of tightened home spending at the beginning of the recession. Other projects
that are rebounding on the Service Magic site include window coverings, siding,
HVAC and deck construction.
“Homeowner optimism has
continued to improve and more people are willing to confidently invest in home
improvements beyond required repairs and maintenance,” said ServiceMagic.com
CEO Craig Smith. “The combination of consumer sentiment and available cash
contributed to an uptick in remodeling categories and foreshadows continued
growth for the foreseeable future.”
The entire survey from
Service Magic can be found atwww.servicemagic/survey.com.
Homeowner service spending up, says Service Magic
January 1, 2010
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