Optimism grows in home improvement sector
Posted on Friday, January 16, 2015 at 7:53:24 AM
In a slow economy, it can be hard for homeowners to validate a major remodeling project. Now that conditions are improving, however, so too is optimism in this sector.
According to the National Association of Home builders' Remodeling Market Index, remodelers were more confident about market activity in the fourth quarter of 2014 compared to the previous three-month period.
"The recent pace and volume of business has been a boon to our remodeler members' confidence in the recovery of the housing market," said NAHB Remodelers chair Paul Sullivan. "The upward trajectory of the RMI results over the past year has shown that home owners are ready, willing and deciding to remodel."
Even with the boost in optimism, the economy is still holding back spending. According to the Joint Center for Housing Studies of Harvard's Leading Indicator of Remodeling Activity, annual home improvement spending growth will slow down from 6.3 percent at the beginning of 2015 to 1.6 percent by the third quarter.
Chris Herbert, managing director of the JCHS, explained that this slip in spending is related to weaker home sales and declining homeownership rates.
Today's owners may want to research affordable home improvement financing in order to start a new remodeling project.