According to experts who attended the National Association of Home Builders (NAHB) Remodelers at the International Builders’ Show in Las Vegas, remodeling spending is increasing in the United States. The spending has been positively growing this past year and is expected to continue.
“Our remodeler members have regained confidence in the market as homeowners move forward with new remodeling projects, as reflected in the positive fourth quarter results of NAHB’s Remodeling Market Index,” said 2016 NAHB Remodelers Chair Tim Shigley. “NAHB remodelers looks forward to working in a strengthened market as remodeling continues to increase in popularity.”
What does remodeling spending say about the market?
According to Chris Herbert, managing director of the Joint Center for Housing Studies of Harvard University, there is a reason remodeling is so strong right now: home prices are rising. Rising home prices bring more homes to the market and increase sales, also driving remodeling spending for homeowners.
Paul Emrath, NAHB’s vice president for survey and housing policy research, agreed with Herbert’s sentiment.
“Going forward, we expect this modest growth in the market to continue, fueled in part by steady appreciation in house prices that will enable owners to tap into their home equity to fund remodeling projects,” he said.
Jeff Grantham, a remodeler himself from Michigan noted another economic trend that might affect future projects.
“While the economic recovery has brought about a surge of remodeling activity for second homes in our market, access to credit continues to hamper the remodeling market’s full potential locally,” he said.
A recent article in the Miami Herald also noted that remodeling permits have recovered fully post-recession, according to an index of activity compiled by BuildZoom, an online marketplace for contractors, and the Urban Economics Laboratory of the Center for Real Estate at Massachusetts Institute of Technology.
Seeing steady increase in remodeling spending goes to show that there is healthy growth and competition in the real estate market. Don’t wait to get involved, and contact RE/MAX Paradise today!