Residential remodeling activity increased over Q2, expected to remain strong
Posted on Monday, August 12, 2013 at 1:02:05 PM
Residential remodeling activity has been growing throughout 2013, and a recent report from MetroStudy illustrated strong gains over the first half of the year.
Home improvement financing is a fantastic tool for upgrading a house, and the Residential Remodeling Index showed a significant increase in homeowner activity.
The seasonally-adjusted national composite for Q2 was 89.1, which is 1.6 percent higher than the Q1 numbers. Moreover, this recent quarter was the sixth in a row to see an increase, helped along by demand.
"The quarterly RRI index values and forecast as well as our annual project estimates reinforce where we are in the recovery, which is solidly in the second year of a multi-year expansion period," said Jonathan Smoke, chief economist of Hanley Wood, the parent company of MetroStudy. "In addition to high levels of home sales, rising home prices, and strengthening consumer confidence, we are seeing the investor share of existing home sales decline, and that's a key part of the reason that remodeling activity is much higher this year than last year."
Mike Englund, chief economist at Action Economics LLC, explained to Bloomberg that 2013 will be a strong year for spending. Home improvement financing helped reach June expenses of $136 billion.
In addition, remodeling activity is expected to be just as strong for the remainder of this year.