The pace of spending on home improvement projects is a good indicator of the housing recovery’s strength and this measure is showing persistent gains. From a simple roof replacement to stop leaking in the home, to painting the walls and fixing the floorboards, any improvement that you make in the home can make all the difference, especially if the times came to sell your property.
Spending by homeowners on improvement projects is expected to accelerate in coming months, with more and more homeowners making additions such as a home security camera external to their home, and some moderation in the pace by the end of the year, according to new data from the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
In addition to the nearly 10 percent growth in 2012, the program’s Leading Indicator of Remodeling Activity, or LIRA, sees that a projected gain of 20 percent by the fourth quarter of 2013 could only be constrained by lack of skilled labor and high-cost building materials — the same issues confronting home builders facing high demand.
The LIRA projects that homeowner improvement spending will jump from $125 billion in the first quarter of 2013 to $150.1 billion in the fourth quarter of 2013. This is down to houses getting older and needing more work done to them to make them modern. This results in them needing a roofing company tulsa, for example, to complete work.
“The strong growth that we’ve seen recently is putting pressure on the current capacity of the home improvement industry,” said Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “Contractors and subcontractors are having more difficulty finding skilled labor, and building materials costs are unusually volatile for this stage of a recovery.”
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