While the home remodeling market continues to project annual improvement spending increasing at a double-digit pace in the near term, a slowdown of this growth can be expected by the middle of 2014, according to the Joint Center for Housing Studies of Harvard University.
The center monitors the home improvement market through a metric it calls the Leading Indicator of Remodeling Activity, or LIRA.
“The soft patch that home building has seen in recent months, coupled with rising financing costs, is expected to be reflected as slower growth in home improvement spending beginning around the middle of next year,” Eric S. Belsky, the center’s managing director, said in a statement. “However, even with this projected tapering, remodeling activity should remain at healthy levels.”
The center’s release also included a statement from Kermit Baker, the director of the center’s Remodeling Futures Program.
“In the near term, homeowner spending on improvements is expected to see its strongest growth since the height of the housing boom,” Baker said. “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.”
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