A bad housing market actually is a very good time to remodel. There are several reasons for this:
(1) you probably don’t want to buy another house in a bad housing market because choices will be limited,
(2) you probably don’t want to try to sell in a bad housing market because you stand to lose profit or investment in the sale,
(3) by remodeling in a bad housing market, your home is ready if you decide to sell when the market turns around,
(4) by remodeling you might avoid the need to move,
(5) during a bad housing market, many contractors bid lower on projects to keep working and keep their crews working, and
(6) remodeling tends to slow somewhat during a slow housing market, which leads materials manufacturers and retailers to offer sales and other discounts.
Taken together, by remodeling during a bad housing market, you could spend less on your remodel and then sell your house for more when the housing market recovers.