CAMBRIDGE, MA – Home remodeling activity will continue growing into the first half of 2013, with money spent on home improvements projected to reach double-digit growth, according to the Leading Indicator of Remodeling Activity (LIRA).
An improved housing market and record low interest rates are spurring the growth, according to the LIRA, released Oct. 18 by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
“After a bump in home improvement activity during the mild winter, there was a bit of a pause this summer,” Joint Center Managing Director Eric S. Belsky said in a statement. “However, the LIRA is projecting an acceleration in market activity beginning this quarter, and strengthening as we move into the new year.”
Kermit Baker, director of the Remodeling Futures Program at the Joint Center added, “Strong growth in sales of existing homes and housing starts, coupled with historically low financing costs, have typically been associated with an upturn in home remodeling activity some months later. While the housing market has faced some unique challenges in recent years, this combination is expected to produce a favorable outlook for home improvement spending over the coming months.”
The LIRA offers a short-term projection of remodeling spending and activity. For an historical look at home improvement activity, click here.
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