What Does that Mean for You?
Only 2.8% of homes in the U.S. changed hands before the final quarter of 2025 – the lowest turnover rate since the 1990s.1 High mortgage rates, reduced buyer affordability and high home prices are each playing a part to ensure current homeowners aren’t upgrading to a new home and first-time buyers are looking for budget-friendly options that they can make their own.
Why Mortgage Rates Matter
Home Renovations Before/After a Sale
A few years ago, mortgage rates were just 3-4%. People bought starter homes with the belief that they would upgrade as their families grew or their needs changed. However, mortgage rates today have soared up to 5-6%, which can result in hundreds of thousands of dollars more over the life of a loan. So, instead of buying new homes to meet their changing needs, homeowners are turning to home improvements and renovations to make their current home better suit their purposes.
Promote projects that help customers make better use of their current space. Upgrades that refresh the home or add usable space will help current homeowners maximize their current home’s potential.
While the number of homes being bought and sold is lower, the real estate market is bursting with opportunity for contractors. Visit any real estate forum and you will find stories and questions from homeowners who are trying to sell their home, doing showings and not receiving any offers. Common consensus is that either their house is priced too high or not in decent enough shape.
Buyers in today’s market are willing to pay premium prices if the home is up to date and move-in ready. Otherwise, they want a discounted price so that they can pay for the necessary adjustments themselves.
Let sellers know how you can help get their house move-in ready to help ensure a faster, higher-value sale. And, on the other side of the coin, help home buyers with repairs or updates to make their new home just right.
Home Renovations Before/After a Sale
Houses aren’t the only things that are more expensive today than they were a few years ago. Labor and material costs are pushing project costs up across the board. Help more customers afford the home updates they need and want by offering a monthly payment option. Foundation Finance will finance home improvement projects from $1,000 - $100,000 and has options for customers with FICOs as low as 550. When the project is completed, we pay you directly, creating a more stable income flow.
Interested in other ways Foundation Finance can help you close your next sale?
Contact us for more info: 1-855-241-0024.
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1 Worley, M., & Bhattarai, G. (2025, October 31). Only 28 out of every 1,000 U.S. homes changed hands this Year—The lowest turnover in decades. Redfin Real Estate News. https://www.redfin.com/news/home-turnover-report-2025/
