Remodeling Activity to Increase by the End of the Year
The Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University recently released the Leading Indicator of Remodeling Activity (LIRA) report and it has revealed some positive insights for the remodeling industry’s near future. The LIRA predicts that the remodeling industry will see healthy growth by the end of the year, and suggests that the industry will close out 2012 at a 5.9% increase.
The Joint Center noted in a press release that stronger pending home sales and continuing low interest rates are factors helping contribute to the healthy growth in the remodeling industry. Kermit Baker, director of the Remodeling Futures Program, also noted that “unusually mild weather this past winter” throughout many part of the country also contributed to the acceleration of homebuilding and home improvement activity. He said that, in combination with a strengthening economy, “should provide a foundation for continued growth moving forward.”
Eric S. Belsky, managing director of the Joint Center, said “Hopefully, we’re finally moving beyond simple volatility in the home improvement spending numbers to a period of sustained growth. The recent upturn we’ve seen in home sales should translate into more remodeling activity later this year.”
After a couple of years of somewhat unstable activity in the remodeling industry, we are excited to hear that this industry is expected to see some positive growth in the coming months.
Image from Jchs.harvard.edu