Home improvement activity: A closer look
Posted on Thursday, July 28, 2016 at 11:51:07 AM
Home improvement projects have been booming of late, and this bodes well for the American economy. Whether a consumer is looking to purchase or sell a home, or simply make improvements to their abode for comfort purposes, all pistons are firing in this segment of the materials and construction industries.
Let's take a look at some of the bigger stories in the home improvement realm from July.
Overall investments soaring
CNBC recently reported that the American economy is likely to see roughly $321 billion in annual home improvement investments by next year. Citing data from Harvard's Joint Center of Housing, the source pointed out that improvement and repair spending will grow by 8 percent by the first month of 2017, which is substantially higher than the 4.9 percent average that had been seen in the past.
This is also a big moment in the context of the housing crisis.
"By the middle of next year, the national remodeling market should be very close to a full recovery from its worst downturn on record," Joint Center of Housing Research Analyst Abbe Will told CNBC. "Annual spending is set to reach $321 billion by then, which after adjusting for inflation is just shy of the previous peak set in 2006 before the housing crash."
One might begin to wonder where all of this money is coming from. In addition to economic improvements elsewhere, home values have played a major role in this trend. According to the news provider, the first quarter of this year saw an increase of $260 billion in equity across the nation because of these higher home values, and much of that is being re-invested back into the abodes.
Stock-Callers.com recently released an announcement regarding the value of home improvement stores in the stock market. Because of the forecast growth in spending, the company believes that now is an exceptional time to invest in some of the bigger retails in the market. This is a sign that growth in improvement spending is looking to be sustainable for a long period of time.
Homeowners who want to tackle bigger improvement projects but do not want to pay all of the cash up front can apply for financing to do so. By getting a home improvement loan from a smaller, local bank, homeowners can rest assured that their investments will be positioned to yield the highest possible returns.