Research findings indicate alongside overall housing market strength driven by improvements in home prices and negative equity there are signs of “a strong rebound” for home improvement activity in 2013, which also help increase home values.
According to the Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity, increases in spending in the second half of 2012 suggest a remodeling recovery “is already underway.”
The Leading Indicator of Remodeling Activity projects annual homeowner improvement spending will accelerate to double-digit growth through the third quarter of 2013.
Eric Belsky, managing director of the Joint Center, credited investment in the residential sector through the first three quarters of 2012 for one out of every six dollars added to the nation’s GDP.
While moving forward, home improvement spending is expected to make an even larger contribution to GDP growth, researchers cautioned that “many external economic and political risks could derail this remodeling recovery.”