“Now is the time to buy.” If you’ve read any reports based off of the Southwest Florida real estate market in the past few months, this statement is something you’ve probably heard time and time again.
Rising home prices and declining inventory show that prospective homeowners are gaining confidence in real estate again and the newest Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University shows that confidence spreading to the home remodeling market with double-digit gains in annual home improvement spending projected for the first half of the year.
“The ongoing growth that we’ve seen in home prices, housing starts, and existing home sales is also being reflected in home improvement activity,” says Eric S. Belsky, managing director of the Joint Center. “As owners gain more confidence in the housing market, they are likely to undertake home improvements that they have deferred.”
“However, the strong growth for this cycle may start to ebb a bit beginning around midyear,” says Kermit Baker, director of the Remodeling Futures Program at the Joint Center. “By that time, we’ll be approaching the pre-recessionary levels of spending, and with borrowing costs starting to creep back up, growth rates are likely to slow some.”
According to the LIRA, which is designed to estimate national homeowner spending on improvements for the current quarter and subsequent three quarters, annual home improvement spending is projected to increase significantly in the first two quarters of 2014, before tapering off in the third quarter. Estimated remodeling expenditures show a total of $153.8 billion over the 12-month period ending Sept. 30. This total excludes spending on minor maintenance projects and rental property remodeling.
If you’re one of the many looking to take advantage of the current market conditions, let the London Bay Homes Remodeling Division assist you with your remodeling or renovation project. Our in-house team of architects, interior architectural designers, construction craftsmen, and the Romanza Interior Design staff will carefully determine the full scope of the project and develop design solutions that align with your goals while integrating the latest design trends in the industry.