Improving Economy Expected to Boost Remodeling

Boston, MA, Aug. 3, 2012 -- Home remodeling activity should grow by the end of this year and into 2013, according to a forecast by the Joint Center for Housing Studies of Harvard University.

“Warm weather in the first quarter temporarily bumped up remodeling activity in many areas,” Eric S. Belsky, the center’s managing director, said in a press release.

“By the end of the year, however, positive market fundamentals are expected to kick in, moving the industry out of this ebb and flow period and into a new growth phase.”

Many homeowners have postponed remodeling projects due to the poor economy in recent years. However, there are signs that pent up demand may be a factor soon as the economy improves.

“The combination of low financing costs, stronger consumer confidence, improving home sales, and the perception that home prices have stabilized in most markets across the country are encouraging owners to start working on the list of home improvement projects they have been putting off ” Kermit Baker, director of the center’s Remodeling Futures Program, said in a press release.