All that hammering you've been hearing isn't necessarily the sound of new homes being built. The latest figures show a jump in home remodeling.

The U.S. Census Bureau recently reported residential remodeling expenditures were up seven percent in 2000. We're now spending almost $153 billion for better kitchens and baths, more space, better appliances, and the like. This remodeling spurt comes at the same time homebuilders also have seen record-high sales.

Census Bureau figures indicate that desire -- more so than need -- is fueling the remodeling boom. The Bureau found that maintenance and repair jobs "held virtually steady" while spending on "largely discretionary addition and alteration projects" was on the rise. Those projects include such things as kitchen and bath remodels and room additions. Spending on big-ticket replacement items, such as windows, roofing, siding, heaters and air conditioners, was up 15 percent last year.

If your house is feeling a bit cramped or just looking woefully out of date, the first question to ask might be, "Move or Improve?" The National Association of the Remodeling Industry provides a number of suggestions regarding how to pick the right person for the job.

According to the trade organization, "nearly half of all projects signed by a contractor are the result of client referrals. An additional 22 percent of jobs are the result of word-of-mouth." So, NARI suggests turning first to such people as relatives, friends, neighbors, brokers, lenders, or subcontractors for a lead. If that doesn't work, you can contact a local NARI chapter for advice, or use the Find A Pro section of the organization's site.

There are some red flags to watch as you choose that contractor.

Among its tips, NARI says you should "avoid remodelers at all costs" when:

• You can't verify the name, address, telephone number or credentials of the remodeler.

• The salesperson tries to pressure you into signing a contract.

• The builder/ remodeler tells you a special price is available only if you sign the contract "today."

• No references are furnished.

• You are asked to pay for the entire job in advance, or to pay in cash to a salesperson instead of by check or money order to the company itself.

• The contractor does not offer, inform or extend notice of your right to cancel the contract within three days.

Once you've found a contractor with whom you're comfortable, NARI says to be sure to get a well-written contract. It can help prevent "costly mistakes or additions to the scope of your project." A good contract is also "a critical step in maintaining your budget."

If keeping to a budget is a concern, NARI advises you to be creative. It points out that often there are many ways to accomplish the same "design objective." Some of those ways may be a lot cheaper than others.

If you want to save money and you're the handy type, you might want to consider doing the work yourself. Again, NARI offers advice -- from the industry perspective -- regarding whether you should Do It Yourself or Hire a Professional.

Need other resources? Here are several to check:

• Build.com
• Do-It-Yourself.com
• HomeAdvisor.com
• Home Depot
• HomeIdeas
• Homestore.com

• HomeTime.com
• ImproveNet
• Lowes
• New Yankee Workshop
• This Old House (PBS)

Carol Ochs is a Washington-based reporter who covers new home trends.