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In home improvement projects, the ceiling might be gone

Posted on Wednesday, August 24, 2016 at 2:29:44 PM

Home improvement spending has been unprecedentedly high in the past year, as individuals continue to invest in their abodes. Although it might have seemed like there would be some limit to just how high the rate of spending would rise, it is becoming clearer that this is very sustainable growth - despite being so enormous. 

Homeowners who are looking to make some improvements should check out the financing programs available, as this can help to ease the financial strain of bigger projects. Right now, the home improvement financing market is in preferable condition for consumers. With more projects expected to be launched in the near future, financing is likely to remain accessible. 

A look at the trend
The Wall Street Journal reported that repairs and remodeling projects are expected to represent $300 billion in consumer spending in 2016, which is even higher than the record of $285 billion that was set in 2007 before the housing crisis. Interestingly, small projects will make up the lion's share of the overall sum spent, while bigger projects on owned homes will be a little lighter. Rental projects are also up, the source explained. 

Unfortunately, there are some trends that have made it more difficult to purchase a new home. According to the news provider, new construction starts for residential real estate are down 40 percent compared to 2006, and home equity values have risen rapidly in the past couple of years. This is likely one of the reasons why so many homeowners are investing in their current homes, given the fact that markets are relatively slim in terms of available real estate. 

Still, seeing this type of increase in home improvement projects bodes well for the economy, as well as the residential real estate market. Combined with record-low interest rates on mortgages, the next step will need to be a resurgent construction landscape. 

Getting approved
Again, because so many homeowners are launching bigger projects, the need for financing is likely widespread. Rather than putting all of the savings into these initiatives all at once and hindering cash flow, a home improvement financing program can make the project a bit more comfortable. Always consider working with a local, community bank to ensure the best possible loan program is chosen, and all of the matters therein are understood.