Although the economic recession is not yet behind us and financing remains elusive, homeowners are already turning their attention to home improvements for 2010—an encouraging sign for remodelers. So says the latest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at Harvard University’s Joint Center for Housing Studies.
“With signs of stabilization in the national economy, homeowners are once again planning home improvement projects,” said Nicolas P. Retsinas, director of the Joint Center for Housing Studies, in an announcement of the findings.
According to the LIRA, the current quarter will mark a cyclical bottom for home improvement spending, after which spending is expected to increase steadily. The rate of decline in home improvement spending is projected to ease from the current rate of -12 percent to -3.1 percent, with an estimated value of $110.9 billion in 2010’s third quarter.
Positive market conditions—a pickup in existing home sales and moderating declines in home prices—may signal the beginning of an upturn for remodeling, notes Remodeling Futures Program director Kermit Baker, Ph.D.
