Spring: The season for home remodeling

Spring is the most popular time for homeowners to launch or plan for remodeling projects. Many owners are opting for projects that will satisfy their personal needs for a growing family, while others want to enhance their home's value.

Nearly 28 million, or 12 percent, of Americans plan to move this year, down from 16 percent last year, according to the American Express Spending and Saving Tracker, a survey of more than 1,800 adults.

One reason why some are staying put this year is that the majority of Americans view the housing market as a "buyer's market." Thirty-seven percent of those surveyed view the current market as a "buyer's market," compared to 25 percent who called it a "seller's market," it was reported by the National Association of Realtors.

For those who do not plan to move this year, many owners are planning to renovate instead, with home renovation projects that are expected to average $4,100 this year, NAR reported.

The top projects on their 2015 to-do lists are redoing a kitchen or bathroom, cosmetic work like painting, improving landscaping and installing new flooring.

Many owners find remodeling ideas while watching home design TV shows, the survey revealed. Thirty-seven percent of adults surveyed say that home design TV shows provide their biggest source of inspiration for home improvement projects, followed by online magazines, do-it-yourself-themed blogs and social media.

Q. Are home prices increasing?

A. Prices are rising, but the rate of increase is slowing down. RealtyTrac, a source for housing data, recently released a February 2015 Home Price Appreciation Analysis.

It found that annual home price appreciation in February slowed compared to annual home price appreciation a year ago in 60 of the 92 analyzed metro areas with populations of 500,000 or more and sufficient home price data.

The report also found the median home price in February increased 14 percent from a year ago but was flat from the previous month to $183,000. The median sales price of distressed homes - those in the foreclosure process or bank-owned - increased 13 percent from a year ago to $127,000, 33 percent below the median sales price of non-distressed properties, which is $190,000.

Q. How does the severe drought in California affect real estate?

A. The drought effects all people and businesses in California - some more than others. Gov. Jerry Brown ordered mandatory water-use reductions for the first time in California's history, saying the state's four-year drought had reached near-crisis proportions after a winter of record-low snowfalls.

Huge investments have been made in properties that require a lot of water to maintain the grounds, such as golf course, cemeteries and farms.

Q. Are mortgage applications increasing?

A. Yes, at this writing, the volume of applications is rising. Mortgage applications increased 9.5 percent from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey.

The Market Composite Index, a measure of mortgage loan application volume, increased 9.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 9 percent compared with the previous week.

The Refinance Index increased 12 percent from the previous week. The seasonally adjusted Purchase Index increased 5 percent from one week earlier to its highest level since last January.

Q. Are energy-efficient features included in an increasing number of new homes?

A. Yes. In April, the National Association of Home Builders, in promoting this trend, is showing how new homes increasingly offer the energy-efficient features homebuyers seek.

Surveys indicate that energy efficiency is among the most-wanted features of homebuyers responding to this demand.

"Our builder members are telling us that more and more buyers are looking at new homes for their efficiency in design and functionality," said NAHB chairman Tom Woods.

"Whether it's improved insulation or sustainable building materials, today's new homes can reach higher energy performance and greater durability than was possible even 20 years ago."

• Email Jim Woodard at storyjim@aol.com.

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