Remodeling putting contractors to work: Housing permits up but numbers small; financing key for commercial projects

SANTA CRUZ Local contractors are reporting an uptick in work this spring, a welcome change after the recession hit four years ago, followed by the housing crash and a weak recovery.

Thats the report from nine out of 10 members of the Santa Cruz Construction Guild responding to a query from the Sentinel.

Call it the slow thaw from a previously frozen landscape, said Michele Landegger of Boa Constructor Building and Design in Santa Cruz. Inquiries are increasing and actual jobs are breaking ground.

Landegger said she is wrapping up the design phase for two residential remodel-addition projects that are moving forward.

Homeowners that can afford to build now are in an excellent position to get the most for their money, she said, noting the number of quality builders outnumber the projects available.

She estimates the volume of new and remodel construction, which had dropped to 10 percent of what it was before the crash, is now up to 50 percent.

Homeowners making inquiries are looking at modest projects because the amount of funding available to them has decreased in direct ratio to their equity, she added.

We are mostly seeing activity along the water, said Julia Bettencourt of Plumbed Elegance. Investors are back in and spec remodeling is picking up. ... People who bought within the last five years and held the property

She sees homeowners more comfortable with bathroom remodels than kitchens since it is typically a smaller and quicker investment.

Shes also seeing back orders because factories slowed production during the downturn and just werent ready for the volume of demand that we are now experiencing.

View original post here:
Remodeling putting contractors to work: Housing permits up but numbers small; financing key for commercial projects