Home Remodeling News: National Remodeling to Pick Up in 2014
Growth in any industry is positive. However, based on a recent report submitted by Harvard Universities Joint Center for Housing Studies through their Leading Indicator of Remodeling Activity report, the home improvement segment is predicted to show significant gains as the New Year begins. Even more impressive, according to current home remodeling news, is that this growth in new home improvement projects is based on accelerated growth seen in the final quarter of 2013 – a time period often associated with reduced remodeling projects.
Home Sales And Home Improvement Are On The Rise
Traditionally home improvement and remodeling jobs see significant gains in late spring and early summer months – especially in temperate climates. However, following a 12-month period where the annual growth rate was stagnant at less than 5 percent in early 2013, the Harvard LIRA report showed double-digit growth in the final two fiscal quarters of the 2013 calendar year.
This significant spike in home improvement spending was based primarily on a highly competitive marketplace and improvements in consumer confidence as 2014 approached. However another important factor was the improvement in the overall housing market, which saw growth of over 17% YTD (year to date) and an impressive $150 Billion being spent on new home remodeling and building in the United States last year.
“Existing home sales are still growing at a double-digit pace, and rising house prices are helping homeowners rebuild equity lost during the housing crash,” stated Mr. Kermit Baker, the director of the Remodeling Futures Program at Harvard University that produced the LIRA report. “We expect the first quarter of 2014 to represent a peak of growth in today’s recovery cycle. However, consumers can feel confident that the growth rate will continue to climb into the early spring and summer months of 2014 as well.”
According to the recent home remodeling news release provided by the National Association of Realtors, existing home sales nationwide grew by nearly 12% over the first eight-months of 2012. And as recent homebuyers tend to be the most active in home improvement projects, such as kitchen and bathroom remodeling, the growth in sales of existing or older homes provides several new opportunities for rapid expansion in the home remodeling segment.
The typical LIRA report that is produced by Harvard University takes into factor eight specific indicators of home ownership market activity including:
- Housing Starting Prices
- Pending Home sales
- Final home sales statistics
- Retail Sales at Home Improvement locations
- And several other factors….
As the overall economy is showing signs of improvement, many climate-neutral states like Arizona, Nevada and Southern Utah are also showing an improvement and increase in current home sales. As seen in home remodeling news, It was estimated in the final quarter of 2013, that existing home sales increased by 20% over the same time period in 2012 in Southern Utah. And with consumers making the choice to invest in upgrading their current homes to become more energy efficient, as well as a highly competitive marketplace of quality-home improvement general contractors offering their services, the first few months of 2014 is the prime opportunity to make a smart investment in your home’s future equity.