With house prices high, CT homeowners turning equity into renovations rather than stepping away

original article published in the hartford courant February 2025

With interest rates holding steadily high and home prices still above average compared to before the pandemic, many homeowners are turning to additions and renovations instead of buying and selling.

According to Glastonbury-based interior designer Sharon McCormick, of Sharon McCormick Design, homeowners are now sitting on “substantial” increases in home equity available to finance renovations.

“Moving is expensive with realtor commissions, closing costs, lenders’ fees, appraisals, inspections, title insurance, surveying fees, moving expenses, and utility hookups adding up quickly. Uncertainty in the market and rising interest rates also play a role in the decision-making process,” she said.

Other factors pushing homeowners to stay in their current abode are loving their neighborhood, keeping children in the same school system, emotional attachments to the home and relationships with trusted neighbors.

“2025 is ushering in a new wave of house renovations, particularly kitchens, bathrooms, and creating more usable square footage by building out unused attic space or basements,” McCormick said.

Kitchens are an increasingly popular room to renovate, she said, since they are the center of activity for meals and entertaining.