Home-improvement spending still sluggish. Is rebound on the horizon?

Spending on home improvement will continue its downward trend into 2010, according to the Leading Indicator of Remodeling Activity, a quarterly index from Harvard's Joint Center for Housing Studies. But, said Kermit Baker, director of the Joint Center's Remodeling Futures Program, "There are some positive developments for the remodeling industry, such as low financing costs for home-improvement projects and rising home sales in a growing number of markets." (Click on the chart to see a larger version of the new index figures.)

The increase in home sales is due in part to sales of distressed properties. And there are plenty of those nationwide. Almost 1.53 million properties were the subject of a foreclosure filing in the first six months of 2009, a 15 percent year-over-year increase, according to the latest data from RealtyTrac.

The increased interest in and focus on energy efficiency could help to boost the housing industry, stimulate job growth, and save consumers money. Between 2009 and 2013, energy-efficient home renovations—adding insulation, updating heating and cooling systems, and the like—will grow at a compound annual rate of 15 percent, according to market-research publisher SBI. That's 50 percent faster than the renovations market as a whole.

If you're ready to remodel, you should be able to find good deals from manufacturers as well as motivated contractors. Our updated Kitchen-Planning Guide and the Home Remodeling Guide interactive feature information on energy-efficient products and materials.—Daniel DiClerico | e-mail | Twitter | Forums | Facebook

Comments

[Tampa Mold Remediation]

That is really useful information indeed.

[sam]

While Home Improvement spending may be sluggish, this may not be a bad thing as more Americans use liquid cash rather than credit for big purchases they cannot really afford.