Homeowners Shy Away from Selling, Nest Instead

In the recent past, buying and selling homes for a profit – also known as flipping – was the thing to do; however, now homeowners are shying away from selling and instead are using their money to nest. According to a new report from the U.S. Census Bureau, 20 percent more homeowners during the first three quarters of 2009 as compared to the same period last year are now making home improvements rather than selling.

What is Nesting and Why Are Homeowners Doing It?

Nesting means to stay in the home and fix it up instead of selling it. According to the Census report, more homeowners are deciding to simply fix up what they have rather than go for something new thanks to the housing market crash. As a result, the spending associated with remodeling increased 8.7 percent in Oct. 2009 as compared to September.

Remodeling Makes More Sense Right Now

While trading up for a bigger home may be more appealing, for many homeowners, it simply makes more sense to remodel what they have. However, the incentive to upgrade is great with the extension of the home buyer tax credit that offers up to $6,500 to those wanting to purchase a bigger home.

While some are taking advantage of the credit, others are preferring to simply upgrade what they already own until buyers who are willing to pay something near what the homeowner owes seem interested again. In the meantime, they’re simply taking pride in enjoying what they have.

Are you looking to sell your home or would you prefer to nest?