Remodeling industry fundamentals are generally beginning to turn positive. "Sales of existing homes are on the rise and home price declines are moderating in most markets across the country," says Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies. "Financing costs are also favorable, although credit availability remains tight for many households."...
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- elormove.com 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
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