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Following the rebound in existing home sales and new home starts, remodeling activity is expected to see double-digit growth by the first quarter of 2013, according to the Leading Indicator of Remodeling Activity released by the Joint Center for Housing Studies of Harvard University. The indicator measures home improvement spending nationally.
Typically, there's a spurt in remodeling during warm-weather months, but positive housing conditions are expected to keep the momentum going through this year and into next.
"Home improvement activity has been bouncing around the bottom of this cycle for almost three years now, waiting for the industry to get some traction," Kermit Baker, director of the Remodeling Futures Program at the Joint Center, said in a statement. Low financing, buyer confidence and stabilizing prices are combining to encourage homeowners to tackle improvements, he added.
Spending on home improvement provides a further boost to the housing market, as well as the economy. Experts are depending on increased confidence and pent-up demand for improvements to spur spending into a prolonged upswing.
Are you feeling confident about spending on home improvements?
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No, I am not feeling confident about spending money on home improvements and in general. The employment market is still anemic and even if and when it recovers, legacy permanent jobs are falling by the wayside and are being replaced by contractor positions. I do not see a return to "normalcy" where everyone is confident about committing 25-30% of their income to housing. 10-20%, maybe.