Remodeling is Ready to Rocket

Homeowner improvement spending is expected to reach annualized double-digit growth in the first half next year due to an improving housing market and record low interest rates, which are driving projections of strong gains in home improvement activity through the end of the year and into the first half of 2013. According to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, a very robust remodeling recovery is soon to get underway. “After a bump in home improvement activity during the mild winter, there was a bit of a pause this summer,” says Eric S. Belsky, managing director of the Joint Center.  “However, the LIRA is projecting an acceleration in market activity beginning this quarter, and strengthening as we move into the new year.” “Strong growth in sales of existing homes and housing starts, coupled with historically low financing costs, have typically been associated with an upturn in home remodeling activity some months later,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center.  “While the housing market has faced some unique challenges in recent years, this combination is expected to produce a favorable outlook for home improvement spending over the coming months.”   [caption id="attachment_11713" align="aligncenter" width="300"] Rising home values and lower interest rates are setting the stage for a busy remodeling season next year.[/caption]