People who refrained from splurging on big home –improvement projects during the housing boom are reaping the rewards now.

Depending on the region of the country and the job, some homeowners are paying as much as 20% less for home remodeling projects than they would have a few years ago.  Many contractors are willing to accept smaller jobs and “handyman” projects that they used to snub.  More projects are also being delivered on time and on budget – a stark contrast from a few years ago.

Remodeling prices are down an average 5% to 10% across the U.S.  Largely due to bidding wars among contractors who are idles by the housing slump and lowers costs for some materials, such as lumber and insulation, because of lower global demand.

However, there are still remodelers who aren’t cutting prices drastically.   Building materials represent only one-third of their costs.  The taxes and insurance premiums, including workers’ compensation, have continued to rise.  For some petroleum-based building materials, such as asphalt roof shingles, the price still remains high.

According to the National Association of Home Builders (NAHB), building permits have declined in the U.S.  From September 2008 to 2009, Single-Family permits fell by 31% and Multifamily permits dropped 61%.  In the Los Angeles/Long Beach/Santa Ana region, the decline was 33% and 64%.

Remember, the lowest bidders don’t necessarily offer the best value.  The National Council of Better Business Bureaus advise that homeowners should get multiple bids and ask to see several recent examples of builder’s completed work and talk to previous clients before signing a contract.

You can find reliability reports for local contractors at www.bbb.org