Home remodeling spending expected to see 5.9 percent increase in 2012
After two years of bouncing around a bottom, remodeling activity is expected to pick up later this year, according to the Leading Indicator of Remodeling Activity, released April 19 by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
Stronger pending home sales and continuing low interest rates are contributing to the rise. The LIRA projects annual spending will see healthy growth in 2012, ending the year up 5.9 percent.
“Hopefully, we’re finally moving beyond simple volatility in the home improvement spending numbers to a period of sustained growth,” said Eric Belsky, managing director of the Joint Center, in a release. “The recent upturn we’ve seen in home sales should translate into more remodeling activity later this year.”
“Unusually mild weather this past winter in many parts of the country accelerated the pace of homebuilding and home improvement activity,” added Kermit Baker, director of the Remodeling Futures Program at the Joint Center, in the release. “This may produce a brief pause in remodeling activity this quarter, but then a strengthening economy should provide a foundation for continued growth moving forward.”