Home Extension & Renovation Cost Index
This month, the HERC Index remained steady. Despite only modest growth in the Index recently, CommSec senior economist Savanth Sebastian said the latest lending finance figures from June 2017 showed people were actually borrowing more money for home alterations and additions than at any other time in the last seven years.
ServiceSeeking.com.au CEO Jeremy Levitt tied this increase in part to Sydney’s property market: “Housing prices don’t appear to be decreasing, so people are turning to renovation in order to live in their dream home.”
You can read the full story here. Astute readers will note that the Tradie Price Index shows an increase of more than 8% in tradie fees this quarter alone, versus the HERC Index’s far more modest 0.2% project price increase over the same period. However, it should be noted that the HERC Index figures also include material costs and are less subject to short-term fluctuations in individual job pricing.