The market for home remodeling is still improving is expected to show strong gains for the remaining months of 2013 and the opening months of 2014, according to the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The Joint Center's Leading Indicator of Remodeling Activity (LIRA) data continues pointing to near-term double-digit spending increases. It also projects a slowdown in growth in mid-2014--although remodeling activity should remain healthy.
"The soft patch that homebuilding has seen in recent months, coupled with rising financing costs, is expected to be reflected as slower growth in home improvement spending beginning around the middle of next year," said Eric S. Belsky, managing director of the Joint Center. "However, even with this projected tapering, remodeling activity should remain at healthy levels."
The LIRA estimates national homeowner spending on home improvements for the current quarter and subsequent three quarters. The indicator provides a short-term outlook of homeowner remodeling activity and is intended to help identify future turning points in the business cycle of the home improvement industry.
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