After three years of declines, "substantive growth" in remodeling spending is likely in 2011, according to the latest Leading Indicator of Remodeling Activity (LIRA) report from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
Remodeling spending is still below its 2007 peak, but the LIRA indicates that homeowner improvement spending is expected to be up at a double-digit pace at an annual rate through the first half of 2011.
“The downturn in home improvement activity has pushed spending below its long-term trend,” said Eric S. Belsky, managing director of the Joint Center for Housing Studies. “A recovering economy should stabilize house prices and consumer confidence levels, encouraging homeowners to reinvest in their homes and undertake deferred repairs and replacements.”
“Remodeling contactors are feeling much more positive about the outlook for home improvement projects,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies. “Low financing costs and a wave of previously foreclosed homes coming back on the market and in need of renovation are expected to generate healthy growth over the next several quarters.”
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