Recent rapid growth in the home remodeling market is expected to taper off at year's end and reflect its longer-term average, according to the Joint Center for Housing Studies of Harvard University.
Researchers with the JCHS said home remodeling's double-digit growth will last through the third quarter, but a slow housing market, specifically home sales, could cause a return to single digits in the fourth quarter.
"The housing recovery has at least temporarily lost some of its momentum," said Eric Belsky, managing director of the JCHS, in a statement. "And as a result, remodeling spending is expected to follow suit and see slower growth beginning later this year."
The prediction is based on the Leading Indicator of Remodeling Activity, which estimates how much money national homeowners will spend on improvements to their homes during the current quarter and the three following quarters.
