Remodeling Upswing Forecast by ProQuest


More Info
									 M A R K E T OV E RV I E W

       Remodeling                                                                                                                         Remodeling Sentiment
                                                                                                                                          More Homeowners Plan Projects

       Upswing Forecast
       Indicator suggests steady increase after bottom early in year
                                                                                                                                              After a year of steady declines in home
                                                                                                                                          remodeling, the Spring 2010 www.remod-
                                                                                                                                 U.S. Remodeling Sentiment
                                                                                                                                          Report reveals a 13 percent increase in the
                                                                                                                                          number of homeowners who say they will
                                                                                                                                          remodel in the next 12 months. This increase
                                                                                                                                          follows a 5 percent increase in last year’s
               omeowner improvement spending is                                             Existing-home sales — including single-       spring 2009 report. The continuing upward

        H      likely to reach a cyclical bottom in
               the current quarter and steadily
                                                                                        family, townhomes, condominiums and
                                                                                        co-ops — fell 16.7 percent to a seasonally
                                                                                                                                          swing in remodeling sentiment indicates that
                                                                                                                                          2010 will show a strong increase in remodel-
       increase through 2010 according to the                                           adjusted annual rate of 5.45 million units in     ing activity, the report concludes.
       Leading Indicator of Remodeling Activity                                         December from 6.54 million in November,               The Spring 2010 Sentiment Report, a
       (LIRA), released by the Remodeling Futures                                       but remain 15.0 percent above the 4.74 mil-       survey of 5,000 homeowners in the United
       Program at the Joint Center for Housing                                          lion-unit level in December 2008.                 States who are considering remodeling, also
       Studies of Harvard University. The LIRA                                              For all of 2009 there were 5,156,000          shows that the recession has had several
       projects annual declines in home improve-                                        existing-home sales, which was 4.9 percent        impacts on U.S. homeowners. These include:
       ment spending will ease from the current                                         higher than the 4,913,000 transactions             • The most popular projects in the past —
       rate of 12.0 percent to 3.1 percent in the                                       recorded in 2008; it was the first annual sales       remodeling the kitchen and bathrooms
       third quarter of 2010.                                                           gain since 2005.                                      — have decreased in popularity, as adding
           “It appears we may be near the bot-                                              Lawrence Yun, NAR chief economist,                a bathroom has taken the honors of the
       tom of the current remodeling cycle,” says                                       said there were no surprises in the data. “It’s       most popular project. This makes sense
       Nicolas P. Retsinas, director of the Joint                                       significant that home sales remain above year-        since, for many homeowners, updating an
       Center for Housing Studies. “With signs                                          ago levels, but the market is going through a         existing room can be put off because it is
       of stabilization in the national economy,                                        period of swings
To top