California is seeing an increase in home remodeling projects, something this economy hasn’t seen since 2007. Home owners are feeling more confident about the economy and 62% of homeowners surveyed indicated they plan to spend an average of $6,200 on enhancements. California saw consumer spending decrease 27% in 2007, but 2010 shows an estimated 5% growth. This could potentially be the first year of growth for this sector since 2006.

Home Depot and Lowe’s are projecting an average 2% same-store sales growth for 2010, a great sign of an economic recovery. Contractors are experiencing an increase of inbound calls for new jobs.  While it’s still nowhere near it use to be, business is picking up.

In anticipation of the rebound of the Home Services sector, Leadpile is launching it’s new home improvement website.  Watch for the website to be available in the coming weeks where you can find a certified contractor near you.

In a continuing effort to research all the options consumers have available to them, I came across a type of loan that I have never seen before. The newest and latest way for consumers to get cash is by taking out a cash advance from their home. Currently, consumers that are age 65 and older have often looked at the option of doing a reverse mortgage. This is basically the consumer taking out a loan on their home, but the loan not being paid back till after they pass away. However, it appears there might be another option available to them.
Something new that lenders are looking at is offering consumers cash advances on their home. According to The New York Times, “Owners 65 to 85 with good credit who live in homes valued above $400,000 (above $500,000 in New York and California) can receive a payment of up to 15 percent of a home’s equity.” Something like this costs the consumer no closing costs unlike a reverse mortgage. There are certain stipulations the consumer has regarding the sale of the home, however the simplicity seems to be there compared to doing a reverse mortgage or other lending options. Yet is this a logical choice for consumers? Not everyone has a home valued above $400,000 either.

The options that homeowners now have are:
1. Refinancing
2. 2nd mortgage or lines of credit
3. Reverse mortgage
4. Home cash advance
5. Loan modification

and what’s next?…………………………….

Consumers are looking for anything and everything they can do to survive. Does this mean a potential new lead type for Leadpile Lead Exchange? Let’s wait and learn some more about this new option available.