Remodeling Activity Likely to Increase This Year
May 1st, 2013
May 1st, 2013
As homeowners regain some, or all, of the equity they lost in their homes during that past few years, remodeling activity is expected to improve this year, according to an article in National Mortgage News.
The Remodeling Futures Program at Harvard University’s Joint Center for Housing Studies is forecasting that spending will increase as homeowners put new roofs on their homes, update their kitchens and bathrooms, as well as complete other projects.
Home equity levels for most homeowners have improved in the past year as housing prices have increased and existing home sales have gone up by almost 9%.
The program thinks home improvement spending will reach $150 billion by the end of 2013, which is a vast difference from how remodeling activity was this time last year. In fact, many remodelers already have projects scheduled well into the fall which implies customer confidence has improved regarding housing. Another factor is many homeowners have grown tired of waiting to make improvements to their homes now that they’ve decided to stay in their homes instead of moving.
In the last two years, 43.7 million homeowners have made improvements to their homes, according to the Census Bureau’s American Housing Survey which is jointly administered by the Department of Housing and Urban Development. Almost 25% of owners made energy efficiency upgrades. The more popular improvements included HVAC equipment, appliances, flooring, roofing, paneling, windows and doors. On average, homeowners spent $3,200 on improvements, although spending varied depending on the type of project.
Are you ready to make upgrades to your home this year? If you need to take out a home improvement loan, contact the mortgage specialists at Grandview Lending. We’ll review your needs and the loan options available to find the right solution for you. So you can make your house the home of your dreams.
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