An improving housing market and record low interest rates are driving projections of strong gains in home improvement activity through the end of the year and into the first half of 2013.
improving housing market and record low interest ratesare driving
projections of strong gains in home improvement activity through the end of the
year and into the first half of 2013, according to the Leading Indicator of
Remodeling Activity recently released by the Remodeling Futures
Program at the Joint Center for Housing Studies of Harvard University. The LIRA
suggests that the seeds for what appears to be a very robust remodeling
recovery have been planted, with annual homeowner improvement spending expected
to reach double-digit growth in the first half of 2013.
In other news, the Remodeling
Market Index of the National Association of Home Builders climbed to 50 in the
third quarter of 2012, up from 45 in the previous quarter. The RMI is at its
highest point since the third quarter of 2005, tracking the positive trends
recently seen in the rest of the housing sector.
All three indicators of current
market conditions improved: maintenance and repairs, minor additions and
alterations, and major additions and alterations. Current market conditions
improved or held steady in all four regions in the third quarter of 2012.