Warm weather spurred the remodeling market in the first quarter, but researchers at Harvard said recently that "positive market fundamentals are expected to kick in, moving the industry out of this ebb and flow period and into a new growth phase."
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The researchers predict the market will see accelerated growth by the end of this year and into 2013. Their findings were released Thursday in the Leading Indicator of Remodeling Activity (LIRA) by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. Specifically, the LIRA suggests that annual homeowner improvement spending may reach double-digit growth by the first quarter of 2013.
"Home improvement activity has been bouncing around the bottom of this cycle for almost three years now, waiting for the industry to get some traction," said Kermit Baker, director of the Remodeling Futures Program at the Joint Center. "Now, the combination of low financing costs, stronger consumer confidence, improving home sales, and the perception that home prices have stabilized in most markets across the country are encouraging owners to start working on the list of home improvement projects they have been putting off."
