Remodeling Market

Preliminary numbers indicate home improvement spending appears to have grown faster than expected through 2007, according to Harvard University's Joint Center for Housing Studies (JCHS). A final report highlighting the growth of the remodeling market in recent years will be released in early 2009. However, the current weak economy and uncertainty in the housing markets will be key hurdles to remodeling activity in 2009, according to the Leading Indicator of Remodeling Activity (LIRA), also compiled by JCHS. The latest LIRA report points to homeowner spending declining at an annual rate of 12 percent by the second quarter of 2009.

"There are a few hopeful signs that we may be nearing a cyclical low point for home improvement activity," notes Kermit Baker, director of the Remodeling Futures Program of the Joint Center. "Existing-home sales appear to be stabilizing, and interest rates for financing home improvements are favorable," he says.

"Other market indictors continue to deteriorate," he cautions.

Copyright Cygnus Business Media Nov 2008

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