The solid growth in the United States home remodeling market should continue through most of 2014, according to the latest Leading Indicator of Remodeling Activity (LIRA), with momentum expected to moderate in the fourth quarter.
LIRA data comes from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The Joint Center expects full-year 2014's home improvement spending to show growth in the high single digits.
Double-digit annual growth in home improvement spending is expected to continue through the third quarter of 2014, after which expected sluggishness in home sales could slow remodeling growth.
“The housing recovery has at least temporarily lost some of its momentum,” said Eric S. Belsky, managing director of the Joint Center. “And as a result, remodeling spending is expected to follow suit and see slower growth beginning later this year.”
“Home improvement spending has already recovered a significant share of its losses from the downturn,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “As spending moves into the next phase, we expect to see recent double-digit growth tail off to its longer-term average in the mid-single-digit range.”
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