Home improvement spending should recover in 2010 and grow as much as 5% according to results from the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
"The gradual recovery in the broader economy should encourage more remodeling spending by homeowners," said Nicolas P. Retsinas, director of the Joint Center for Housing Studies. "This year could produce the first annual spending increase for the industry since 2006."
Favorable market conditions support the projected increase in remodeling activity. “With house prices showing modest gains in most markets and the employment outlook beginning to stabilize, owners are likely to refocus attention on home improvements,” noted Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies. “Home sales are trending up, which shows growing confidence in the housing market.”
The LIRA is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters. The indicator, measured as an annual rate-of-change of its components, is a short-term outlook of homeowner remodeling activity and is designed to help find potential future turning points in the home improvement industry.
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