Market Leaders: Remodelers Seeing Bottom in Phoenix

Part of our 2009 Market Leaders coverage. Click here to go back to the main Market Leaders article

With prices down 31.8 percent in the last year and 53.9 percent since the market peak in mid-2006, it's no surprise that remodeling has been hard hit.

"Many homeowners just don't have equity in their homes anymore," says Tom Sertich, president of Kirk Development Co. "The banks just aren't loaning. Everyone's just kind of scared."

Kirk's leads are barely 25 percent of what the company normally gets. Even those who can afford to remodel and don't need financing are reluctant to spend their money on a home that could continue to lose value in a recession.

"I don't think they want to start doing things until they know their home values aren't going to go down any further," Sertich says.

The remodeling market is also starting to improve recently, albeit slightly, Sertich says.

"I wouldn't say that it's great, but it's getting better," he says. "Because of what we've been through, I think Phoenix is going to be one of the first ones to start coming back."