Americans are spending more on home improvements, but at a slower pace than a year ago. That’s potentially bad news for the housing market.
Read More: http://www.marketwatch.com/story/spending-on-home-remodeling-is-slowly-improving-2015-07-17
Spending by homeowners on property improvements is expected to reach an estimated $151.1 billion for the 12 months ending in the third quarter of this year, according to data released Thursday by the Harvard Joint Center for Housing Studies. While that’s an annual increase of 3.5% over the same period a year ago, the rate of growth has gradually slowed from a recent peak of 10% growth in the third quarter of last year versus the same period in 2013. Annual growth is projected to slow for the rest of 2015, it says, but then accelerate again by next year.
This tepid rate of growth in remodeling is supported by earlier research on the subject. The amount of money Americans have been spending per home improvement project has declined over the last five years, from $6,200 in 2010 to $4,100 in 2015. Still, spending on these projects has increased slightly from $4,000 last year, the latest American Express “Spending and Savings Tracker” survey concluded. What’s more, some 75% of U.S. homeowners plan renovations this year, up slightly from 73% in 2014, the research found.
Related Article: http://twincityhomeremodeling.blogspot.com/