Home remodeling is expected to make a healthy recovery in full year 2012, according to the Leading Indicator of Remodeling Activity (LIRA) from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
After spending two years "bouncing around a bottom" remodeling is expected to pick up later in 2012, buoyed by stronger pending home sales and continuing low interest rates. The Joint Center expects annual spending on remodeling will end 2012 up 5.9%.
"Hopefully, we're finally moving beyond simple volatility in the home improvement spending numbers to a period of sustained growth," says Eric S. Belsky, managing director of the Joint Center. "The recent upturn we've seen in home sales should translate into more remodeling activity later this year."
"Unusually mild weather this past winter in many parts of the country accelerated the pace of homebuilding and home improvement activity," says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. "This may produce a brief pause in remodeling activity this quarter, but then a strengthening economy should provide a foundation for continued growth moving forward."
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