After hovering around a bottom for nearly two years, remodeling activity is expected to increase later this year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Joint Center for Housing Studies of Harvard University
. The LIRA projects annual spending on remodeling projects will rise 5.9 percent by the end of 2012. Stronger pending home sales and continuing low interest rates are driving the rise in remodeling activity, but a mild winter in many parts of the country was a factor too, says Kermit Baker, director of the Remodeling Futures Program at the Joint Center.
â€œUnusually mild weather this past winter in many parts of the country accelerated the pace of homebuilding and home improvement activity. This may produce a brief pause in remodeling activity this quarter, but then a strengthening economy should provide a foundation for continued growth moving forward,â€ Baker says.
Source: Council of Residential Specialists, Published April 20, 2012