After three years of slumping business, builders anticipate that the home remodeling and improvement sector will pick up in 2012, according to a recent article in The Orlando Sentinel.
During the recent National Association of Home Builders (NAHB) Conference, NAHB researcher Paul Emrath, reported that remodeling was beginning to edge up.
In 2011, U.S. residential remodeling added up to an estimated $279 billion, about the same as in 2010 but down almost 15 percent from 2007. New-home starts have fallen more than 70 percent around the country since the market peak in 2005.
While not coming close to approaching that peak, The National Association of Home Builders is forecasting an almost 9 percent increase in remodeling this year and more than an 11 percent jump nationwide in 2013. Emrath attributes the slow rebound to the decline in house prices and a lack of equity.
More than half of the home remodeling projects last year cost in excess of $25,000, and total home remodeling and improvement expenditures now add up to more dollars than new-home construction, according to the builders association. Remodeling accounts for close to 70 percent of U.S. residential construction expenditures.
The biggest share of home improvement spending, roughly 20 percent, goes for exterior repairs or upgrades. But kitchen and bathroom jobs are a close second at 19 percent of remodeling work. Upper-end discretionary remodeling projects that were popular in housing?s hey-day, are expected to be few and far between. Until nationwide home values improve, homeowners are expected to be more conservative with their remodeling.
Previously foreclosed homes needing repairs will continue to be a benefit to remodelers. Lenders are also spending money to improve distressed homes, with Fannie Mae spending more than $600 million to repair foreclosed properties.
The large inventory of foreclosed homes currently on the market, stand to help the remodeling business for some time to come.
Published by Mike Woods. Mike Woods is the broker/owner of msWoods real estate, LLC. Staffed with over 40 agents, msWoods assists buyers in search of Indianapolis homes for sale. msWoods also helps buyers throughout Central Indiana, including those in search of Fishers real estate. In his spare time, Mike Woods blogs about Indianapolis related topics, such as things to do in Indianapolis.
Source: http://funhomefinder.com/2012/02/29/home-remodeling-expected-to-rebound/
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